For Rent Real Estate Home Rental House SignGiven the numerous enquiries and questions received in respect of Decree 113/2015, of May 22, which approved the regulation of holiday homes in the Autonomous Community of the Canary Islands (BOC No. 101 of 05/28/2015), the Canarian Tax Authorities have announced on their website that a vivienda vacacional rental (defined as a temporary holiday let to someone in exchange for money and which has been advertised in tourism-related channels) is an activity subject to, and not exempt from, Canarian Indirect General Tax (IGIC). 

As such, anyone carrying out this activity (the owner or the individuals or legal bodies doing so on behalf of the owner) must comply with the following requirements:

– to register as liable for the tax (modelo 400)

– to issue invoices for each stay

– to pass on or apply IGIC at 7% on the price of the accommodation and specify it in the invoice.

Likewise, they are subject to the obligations of IGIC taxpayers (as per Article 59 of Law 20/1991, of June 7), which include the presentation of quarterly IGIC self-assessments by modelo 420).


Author: J. Escobedo

I am a member of the Tenerife Law Society since 1989 with a dedicated team for anyone who needs an immediate answer or long term solution to any practical or legal issues appertaining to any property or business investment in Spain. If you have decided to move to Spain to start a new life, whether that´s buying a property or a business, then you will definitely need the services of a good Spanish Lawyer who is fully conversant with Spanish protocol and who has a good command of the English language. I am based in the south of Tenerife and I am specialist in Property Law, Inheritance issues and taxes as well as Tenerife and Canarian law and a great deal more. ABOUT MY STAFF All my friendly and professional staff are fluent in English. We have been working for foreign clientes for over 30 years in Tenerife, providing legal advice and litigation services to all our clients investing throughout the whole of Spain and we pride ourselves on providing a high quality service to our clients in the form of clearer communication and advice.

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