Income tax return: which holiday rental expenses you can deduct
Short-term rental income is taxed as property income in Spain, and a large share of expenses is deductible in proportion to the days the property was let.
- Utilities, community fees, property tax (IBI), insurance, depreciation and the management fee are deductible, prorated by occupied days.
- The 60% reduction for long-term residential lets does not apply: holiday rental income is taxed in full.
- Keeping the manager's monthly invoice makes the return simple: bookings and commission are already itemised.
What happened
The Spanish Tax Agency treats holiday rental income as property income when the owner does not provide hotel-type services. Expenses needed to earn that income are deducted, but only for the share of days the property was actually let.
Days when the property was empty and available do not generate deductible expenses, and are additionally taxed as imputed property income.
What it means for your property in Málaga
With high occupancy, most of the year’s costs become deductible: utilities, community fees, IBI, insurance, repairs, depreciation of the building and furniture, and the manager’s fee. Unlike long-term letting, there is no 60% reduction on the net income.
The key is having income and expenses separated by month and by property. If the manager delivers a monthly invoice itemising bookings and commission, and platform income goes straight to your account, the tax return comes down to adding up twelve documents and your bank statements.
How I handle it in the properties I manage Booking income goes straight to the owner, and at the end of the month they receive my invoice itemising bookings and commission, ready to hand to their tax adviser.
Summary written with the help of AI and reviewed by Brian Donneys on 1 Sept 2026. General information, not legal or tax advice.