Holiday rentals in Fuerteventura: Which expenses are deductible?

Find out what expenses are deductible in your income tax return for a holiday rental in Fuerteventura.

40% of the tourist vacancies available in the Canary Islands correspond to holiday homes.
According to data from the Ministry of Tourism of the Government of the Canary Islands for the month of May, there are 57,796 tourist apartments in the archipelago , distributed as follows:

• Tenerife: 24,678 tourist apartments
• Gran Canaria: 13,993 tourist apartments
• Lanzarote: 8,392 tourist apartments
• Fuerteventura: 7,295 tourist apartments
• La Gomera: 1,174 tourist apartments
• La Palma: 1,704 tourist apartments
• El Hierro: 560 tourist apartments

These figures continue to rise month after month, so it is very likely that by the time you are reading this article, they are even higher.

Given the amount of tourist apartments on the islands, the consultations on tax issues are multiplying. If in a previous article we explained how the holiday rentals in the Canary Islands are taxed, today we will focus on a topic that has a lot to do: the expenses that you can deduct when renting a property in Fuerteventura.

Deductible vacation rental expenses

Generally speaking, we could say that the deductible expenses of holiday rentals in Fuerteventura are those that are directly related to the rental, that is to say, those necessary to market a property.
You have to take them very much into account since part of the profitability that you can get from your rental will depend on them. We are referring to:

Maintenance and repairs

You will be able to deduct from your holiday home in Fuerteventura all those expenses necessary to maintain the property in good condition and to provide accommodation service: repairs in plumbing and electricity, change of appliances, painting etc..

*Important: You will be able to deduct from your vacation rental the maintenance expenses, but not the improvement expenses.

Insurance premiums

The premiums of the insurance policies contracted to cover both the owner’s civil liability and the property itself will be deductible.

Fees and taxes

You will also be able to deduct from the income obtained from the rent, all taxes and fees related to the ownership of the property: Real Estate Tax (IBI), water tax, garbage tax…

Financial and amortization expenses

If your property in Fuerteventura has a mortgage, you will be able to deduct the interest and financial expenses associated with it, as well as the amortization of the property and the furniture inside it. The limit for the deduction for amortization is usually 3% for the house and 10% for furniture and furnishings.

Promotional expenses

Vacation rental expenses related to the promotion of the property for the purpose of obtaining tenants will be deductible.
Also included in this section will be the possible commissions charged by the tourist apartment platforms when the tenants contract the accommodation through them.

Supplies and services

Expenses related to essential services in the home, such as electricity, water, gas, Internet, etc., will be deductible from the Income Tax Return.

Management and administration expenses

Finally, those invoices issued by companies dedicated to the management and administration of holiday homes will also be deductible expenses of the tourist rental. For example, if you hire Destiny Home for the management of your holiday home in Fuerteventura, you will be able to deduct our services from your income tax.

Likewise, you will also be able to deduct the services of a possible lawyer or accountant.

Some extra considerations

Whatever the expense that you are going to deduct, you have to take into account that you will only be able to deduct the proportional part to the time that you have had your house rented.
For example, if you are only going to rent your home during the summer months, you will only be able to deduct the proportional part of these months of your water, electricity, Internet and even IBI bills.

Remember to keep all invoices and payment receipts for all your expenses in order to be able to prove their payment in case of any possible inspection.

Questions and answers about vacation rentals