The tax agency is going to be checking property rentals. | P. Bota

The special representative of the national tax agency in the Balearics, Arnau Cañellas, said today that he expects that there will be “overwhelming” results from the campaign to detect holiday rentals that are not being declared.

The Hacienda, which has the support of the regional government, has, as suggested in the Bulletin yesterday, already collected the necessary information. Cañellas says that it has been collaborating with town halls and property agencies.

He adds that the purpose is not to decide whether a holiday rental is legal or not but to ensure that rentals are declared for tax. In this regard, the number of personal inspections will increase “significantly” in order to detect examples of the black economy.
The internet has been used to find out the location of properties that are being rented out and their use. Cañellas says that “there are some prices for daily rental that are difficult to understand”, while there are owners of properties for tourist use not benefiting from the deduction bonus for owners of properties for routine use: hence, the campaign to uncover fraudulent rentals.

As mentioned yesterday, the tax agency has included a message on its website aimed at taxpayers that it knows have rental properties. This reminds them that income has to be declared.

The message states: “According to data available to the AEAT (the national tax agency), you have placed advertisements for property rentals with different media, including the internet. We would remind you that, in the event that you have received income from renting, you should include it in the declaration, as you should any type of income for which tax is due and which is not included in the fiscal data.”