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A homeowner in the Canary Islands with a property for holiday rentals has enquired about VAT obligations regarding platform commissions and the deductibility of expenses for Income Tax purposes. The Directorate General for Tax (DGT) states that it lacks jurisdiction over VAT as the property is located in the Canary Islands and clarifies that, for Income Tax, expenses are only deductible in proportion to the time the property is rented.
Property owners using their homes for holiday rentals must ensure that expense deductions are strictly proportional to the actual rental period to comply with tax regulations.
The tax team reviews your specific situation.
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