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Is there anyone who has completed the process for Airbnb in the Granada province
completing the following:
1 Sociales registration costs per month for being self-employed or running a business
2 Using a Gestoria for tax returns and consultant fees
3 Paying tax on the Airbnb how much?
4 Having to pay for health insurance per month when you are a resident living in Spain
5 Paying tax on your property for renting it out
6 The registration fee to the Andalusia Tourist authority
7 Registration for tax every 3 months costs
Has anyone done all this in the Granada province and made a decent profit to make the whole Airbnb worth it.
I have looked into it and maybe Malaga is better but I am not so sure about Granada
As there are over 3000 hosts with listings in Granda I would imagine it is a viable business and that people are following the registration and taxation process
Whether YOU can make a ‘decent profit’ (not sure how you would define this) would depend on a huge variety of factors.
It is not a one size fits all business and your tax and other costs will depend on the income you generate, your personal tax situation and your operational costs.
Have you put together a business plan with your set up, fixed and operational costs? Have you estimated how many days you can let your place for? Have you estimated your charge out rate? Have you looked at what others with comparable places are charging?
This will help you identify whether you have a viable business model.
I’m not sure you have David, your questions are more to do with the basics of residencia (i.e. living in Spain) and tax as opposed to hosting on Airbnb, and would apply no matter where you purchased.
I think you need to do some more research, especially in relation to tax, whether autónomo status is a good fit for you and I suppose just generally living, as a foreigner, in Spain.
There are also loads of ex-pat forums related to living in Spain with a lot of information about day to day stuff, but don’t take what is posted on the majority as gospel. Things change all the time here, so what was the process for something one day may very well not be the next.
What I will say though, is that most folks use a gestor to sort out their taxes, so cheap and takes away a whole load of work each Spring.
The maximum room rate in the area is 50 euros per person
So the maximum income is an average if every day occupied in a month 1500 euros
The costs are different.
The tax is on every euro when you are a resident.
Then one has to register with the sociales which means paying for health care and automino or self employment or a business which is more complex. 50eroes first year then up to 275 euros a month then upto much more
Then one has to pay a gestoria as they are the best people for dealing with bureaucratic forms and regular 3 monthly tax returns.
I have worked out when a person does everything legal and above board it is a fine line between profit and loss.
Do you think I am missing something apart from what you said.
Also I am only doing Airbnb for an ensuite room bedroom bathroom and private balcony, with bed and breakfast and coffee and tea facilities.
I had rented in the past and greta feed back with TripAdvisor and clients and have an agent in the village who rented the apartment but this was only in peak season and I was not in the property at the time.
I would never base my income on a listing being occupied every day of the year. Look at something like AirDNA and see what averages are for your type of property for your area. @David18750
If you have done what I have suggested and have developed a comprehensive profit and loss set of accounts for a year taking into account all your costs (taxes, professional fees, additional utilities, insurances, set up costs, cleaning, bedding, your time etc) and income from a listing and based it on letting it 365 days a year, then you have your answer.
You don’t have a profitable business if you drop below that. Which you will.
I know you say you have done your research, but I am not sure you have done as much as you think you have for example there are many listings that charge way more than 50 euros a night for a shared listing.
But while applying for residencia everything became more and more complicated hidden costs kept coming out of the woodwork.
Gestoria fine.
Sociales more expensive 50 euros concession first year 275 next up 1000 dependent on business
Tax on every euro of profit earned.
Tax on a pension up to 50% as a resident of Spain
Health care insurance
So, while living in ones property and doing Airbnb is fine, one then has to connect to the system and that incurs all the extra costs.
Going back and forth to Spain every 3 months as a holiday was so uncomplicated and tax was all in England and so much less and uncomplicated.
In Granada? No way. A quick search in August has private rooms over €100 per night. We visit Granada often and it’s always a struggle to find decent priced accommodation, all year round.
No it’s not.
No you don’t.
Once a year for individuals, we were €120 for our tax returns. We fill out our own forms, why pay someone to do that?
No it’s not, at least not in our case.
Don’t know where you’re getting your advice from, but as I said previously, I think you really do need to do your own research. The advantage to that is that you will be able to work out your options, not a greedy gestor who sees you as a euro cow with deep UK pockets.
Hi again,
If you are working in Spain in the Granada region you have to register as Employed or self Employed if your not doing that eventually you will be fined and the Bank eventually will ask you if you are a non resident or resident if you are self employed.
This info was passed onto me by a lawyer and Tax consultant who said i had to register before doing my tax returns.
So is that’s wrong then the lawyers in Almunecar and Salobrena are all wrong too.
Also the rate in the village by the sea is 35 euros a night per person in the hotel.
No one is charging 100 euros a night unless your in the city perhaps.
The 50 euros a night is high but maybe you mean 50 euros per person then the the rate would be 100 euros for two persons in the ensuite room.
Tax returns have to be completed every 3 months if you are self employed in Spain for many kinds of occupations.
Maybe the Airbnb is once a year but my accountant said every 3 months for certain kinds of business.
And his info is quite new.
I hope it is once a year I will check with my Gestoria today.
Thanks
D
As a resident, I don’t need to register (on a personal level) as anything to operate a properly licenced STR. I declare the income each year and pay the necessary tax on it. The allowances (operating expenses etc) are quite decent.
If you want to be legal and above board, I’d suggest you start with the simple shit first; get your NIE & residencia sorted, it’s not difficult.
Tax consultants and lawyers will earn a lot of money from you if you are autónomo, as will the government in taxes and SS contributions. I’m not suggesting they are wrong, but from personal experience in Andalucia I’m suggesting that you are being advised to use a sledgehammer to crack a very small nut.
I’ve left the answers to JohnF because I’m lazy and he can explain it better, but you DON’T have to register as Autonomo to run an Airbnb, unless you have another business. You register your place (for free!) as a Vivienda con Fines Turisticos. You do pay more tax than if you’re renting long term as you don’t get the 60% reduction.
If you are offering breakfast it seems to get more complicated because you are supposed to charge IVA on this and then I suppose you could be seen as a business.
The website www.spainholiday.com has a lot of good info about the various regions’ holiday rental laws. At the moment we’re relatively lucky in Andalucia, but I have to say I’m not holding my breath …
