He thought that he had done everything right, but the owner of a holiday home was still unpleasantly surprised when advised by the tax authorities that he owed turnover tax (Spanish:IVA) – out of the blue.
The person concerned is puzzled as he does not operate a purely commercial holiday-home rental which would be liable to VAT, only the administratively and fiscally- simplified version for which no IVA accounting is necessary.
2017 was a turbulent year for holiday rentals in Mallorca. The Balearic government initiated a new law on the 1st. of August imposing a moratorium which means that it is likely that, at least before summer 2018, no new applications for holiday rental licences will be accepted.
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