We are providing the information below to get you started in terms of what you may need to know about the Royal Decree 1070/2017. All questions under this specific section and the following section “How does this Royal Decree impact me?” have been independentlyanswered by Asociación Española de Asesores Fiscales (“AEDAF”).

We need to be clear: this information is not legal or tax advice – it is only a starting point for your research. Tax advice is complicated and you should do your own diligence when receiving advice. We recommend that you assess your particular case with your tax advisor.

General information that you should know
about the Royal Decree 1070/2017

Who does Royal Decree 1070/2017 apply to?

This Royal Decree applies exclusively to persons and entities that provide intermediation services between hosts and guests for the provision of temporary tourist accommodation, involving the use of all or part of a furnished and equipped dwelling, when it is located in Spanish territory. In particular, the "collaborative platforms" will be bound by such Royal Decree. Airbnb is a collaborative platform under the definition in the Royal Decree.

Does Airbnb’s obligation to share data apply to my listing?

The obligation to share data only refers to temporary accommodations used for tourism purposes.

No data will be shared regarding the following accommodations:

  • Dwellings whose main purpose is to satisfy the need for permanent housing (i.e. long term rentals).
  • Tourist accommodation regulated under its specific regulations, such as hotel establishments (hotels, aparthotels, hostels, spas, etc.), rural houses, hostels, campsites, camps, etc.
  • Accommodations in a "time-sharing" regime.

Is this a one time request, or is it a continuing reporting obligation?

The obligation to inform is indefinite and periodic. The tax declaration corresponding to the income of 2018 is annual and will be filled between January 1 and 31, 2019. Those corresponding to successive years will be submitted in quarterly reports.

What specific personal information is required to be shared with the Spanish Tax Authorities pursuant to Royal Decree 1070/2017?

  • Identification of the owner of the property
  • Identification of the assignor(s) or the host(s) if they are not the owner of the property
  • Identification of guests (assignees)
  • Property identification: complete address, including the cadastral reference if assigned
  • Number of days of enjoyment of the dwelling for tourist purposes
  • Amount received by the host
  • Start date of the reservation

Does the Royal Decree require to share data in relation to all the transactions carried out during the year 2018?

Yes, it applies to each and every one of the transactions corresponding to 2018.

Can the Tax Authorities share the data provided by the platform with other Public Authorities?

The information obtained by the Tax Agency in the exercise of its functions is reserved. In accordance with article 95 of the General Tax Law, a tax administration should not share data with other non-tax administrations except in assessed cases.

How does the Royal Decree impact me?

If I am not a Spanish resident host, will my data be shared?

Yes. The obligation to inform refers to all holders of dwellings located in Spanish territory.

If the platform makes quarterly information reports to the Tax Authorities, does that mean that I as a host also have to make quarterly returns?

No. The quarterly information obligations correspond exclusively to the platform. The host who does not act as a entrepreneur, if he/she is a resident in Spain, must only declare the income obtained in his/her annual income tax return (IRPF), and if they are not a resident in Spain, in their quarterly Non-resident income tax return (IRNR). If the tourist rental is part of a business activity, the provisions of specific regulations for that cases will apply.

Can the Tax Authorities review my income tax returns for the last 4 years?

Yes, the period of review by the Tax Authorities is 4 years from the date upon which you should have declared such income. The prescribed term is counted from the last day on which you could submit the income return voluntarily.

Can I still declare the income obtained during the year 2018?

It will depend on the nature, residence and activity of the host:

  • A. If you are a natural person who does not act as an entrepreneur:
    • a. If you are a resident in Spain, you are taxed by the IRPF, and the income obtained in 2018 will be declared in 2019 within the period established by the regulation, which is usually from April to June.
    • b. f you are not a resident in Spain, you are taxed by the Non-Resident Income Tax. In this case, if the result of the income declaration is that you need to pay, you must submit a quarterly tax return for all the operations referring to the same property, in the period between 1 and 20 (both included) of the month following each quarter; that is, in April, July, October and January. If the tax return of previous quarters had not been submitted, they may be submitted after the deadline before being required by the Tax Agency, in which case there will be no imposition of a penalty but surcharges will be charged. When the result is zero, it should be declared annually from January 1 to 20 of the following year.
  • B. If the host acts as an entrepreneur.
    • In the case of residents in Spain, they will have to declare their income in accordance with the provisions of personal income tax regulations or corporate income tax (legal entities). In the case of non-residents, the provisions of the Non-Resident Income Tax regulations will apply.

Is it possible that the data that the platforms share about my income does not match the amounts declared by me?

The collaborative platforms must report the net income received by the host ("amount received"), however the hosts must declare their gross income on the one hand, and the expenses deductible on the other. For more information about the deductible expenses that may be applicable, consult your tax advisor.

Please find here more information about how Airbnb is going to comply with the Royal Decree.