Holiday rental tax for owners in Menorca

Holiday rentals in Menorca

Because Menorcan rentals are often small and seasonal, owners tend to underestimate the obligations, and past seasons are frequently undeclared. Expenses such as IBI, community fees, insurance and the agency's commission are deductible for EU and EEA owners, prorated for the rented days, which often reduces the tax considerably. Rules on holiday rentals are set by the Consell de Menorca and the town halls.

Tax obligations of a holiday rental

Obligation	Non-resident owner	Resident owner
Income tax	Modelo 210 every quarter	Annual income tax return
Tourist tax	Periodic returns	Periodic returns
Days not rented	Imputed income	Imputed income if not main home
VAT	Only with hotel-type services	Same

How we handle holiday rental taxes

We set up the quarterly returns from your platform or manager statements, deduct the expenses allowed, handle the tourist tax and check that the licence, the platform data and the returns match. If past seasons were not declared, we regularise them before the tax agency acts.

Our general service page explains the rules in more detail: Holiday rental tax in Spain. We also advise in Mallorca, Ibiza.

An illustrative example

Based on situations we commonly see; not a specific client. A Belgian couple let their house in Binibeca for six weeks each summer through an agency. We regularised three unfiled seasons, deducted their expenses and set up the quarterly filing, all before any letter from the tax agency.

This page is published by Castell.tax, the tax practice of Castell.law in Palma de Mallorca. It is general information; tax rules and rates change, so check your case with us before filing.