Empowering Holiday Home Owners: The Modelo 179 and what it means to you.

If you're renting your holiday home you may have heard of the modelo 179. It's an informative declaration meant to help prevent tax fraud, but what does that mean for you?

The modelo 179 has been in use since 2019, but there’s still some mystery around it.

First things first, the good news! It’s not something you have to declare personally as a holiday home owner.

It’s a quarterly declaration for homes used for touristic purposes, submitted by platforms and companies taking bookings on your behalf. 

The form exists to try and prevent tax fraud by people renting out their property as a holiday home without declaring the income.

In particular, the tax office created the form to control properties rented to tourists through platforms such as Airbnb, Booking.com or VRBO, which were previously “flying under the radar”.

The tax office’s ultimate goal is to find out which homes are rented, under what format and, above all, who their owners are.

What information is included in Modelo 179?

  • Property address and cadastral reference number.
  • Full name of the property owner and property manager if applicable.
  • The first date of each booking and number of days it was rented for.
  • The full fee for the booking as received by the property owner.
  • A contract number if applicable.
  • Method of payment used.

This is just one measure used by the tax office to track down owners who aren’t paying tax on their earnings. We’ve also seen numerous cases where owners were tracked down through their facebook posts promoting the property rental. 

In short, although you might still hear other long-time owners boast about renting tax-free, it really is advisable to do everything above board, and voluntarily submit your taxes. 

No one likes to pay more than they have to, and we’ll advise you of any deductions you can apply, as well as take care of the monthly and annual declarations on your behalf, keeping life as stress free as possible. 

Want to find out more? See the full run down of services we offer resident and non-resident holiday home owners. 

Looking to book an appointment to discuss your individual tax situation? BOOK HERE

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