Paying taxes in Spain

Hi there. We live in New York but own a vacation home in Spain, that we’d like to rent out. If we use our US Airbnb account, we’ll pay taxes here on that more or less automatically. Do we have to pay taxes in Spain additionally? Would we be better off creating a new Airbnb account in Spain?

Someone like @azreala might be able to help. My understanding is you get one Airbnb account based in your country of residence and all listings /payouts go through that account.

There will probably be taxes due in both locations; nothing is ever free sadly.

Spain and the U.S.do have a dual taxation agreement but I’m not sure what the implications for non-residents are … Since it’s bound to be complicated (when were tax affairs ever not!) I suggest you search for a lawyer in Spain that specialises in tax for American expat.

Where in Spain is your apartment? I don’t know if you’re aware, but most of the Spanish regions now have new regulations on vacation rentals and they’re being quite strictly enforced. That’s something else your lawyer could help you with.

I agree with @Zandra that Azreala could probably give you better info as, unlike me, she’s also a non-resident in Spain.

As @Malagachica pointed out that is the first and most important question you need to sort out.

Yes, there is a tax treaty between US and Euro BUT sadly it is very complicated and I have always felt we pay double taxes. The other thing you have to consider as a US citizen it doesn’t matter where you make $$ the US always has claim to it for tax purposes. You will need an accountant in Spain as you will have to pay taxes there and then you will need an accountant in the US who knows how to properly claim foreign income.

Creating a Spainish account doesnt matter, you are still on the hook for taxes. Also, Spanish (EU) banks are required to report any accounts held by Americans.

Since im dual and my husband is not US we technically could probably avoid paying US taxes on money we make in :es:, but it just seems like a ‘why poke the bear’ situation.

Thank you, that’s super helpful.
If I use my US account, and if the US entity of airbnb pays me the income, is the income still taxable in Spain? This is in the Valencia province.

Also sounds like I’ll have to find a tax accountant quickly! :slight_smile:

Yes!!! Any income made in Spain is taxable in Spain.

Hi there! I have a similar situation and wanted to know if u can recommend a Spanish accountant? Thanks:)

Whereabouts in Spain are you?

Our place is in Madrid

Ah, then, sorry, can’t help, as we’re in Malaga … might like to do a swap with you sometime if you’re interested though! :slightly_smiling_face: