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Property for sale Gran Canaria

Category: Fees and Taxation

modelo 400 canarias
May 16, 2025 Daniele Piccoli No Comments Fees and Taxation, Legislation/Laws, Model 400, vivienda vacacional

What is Model 400 in the Canary Islands and What is it for: Complete Guide 2025

The “Model 400” is a fundamental administrative document in the Canary Islands, used for various tax and legal procedures. This model is closely related to the Canarian tax system, which has peculiarities compared to the rest of Spain, thanks to the Canary Islands’ special economic and fiscal regime (REF – Régimen Económico y Fiscal de Canarias). In fact, the Canary Islands enjoy a differentiated tax regime, with specific taxes and regulations aimed at promoting the economic and social development of the archipelago.

What is the Model 400?

Form 400 is a tax declaration required for the registration, modification or termination of a business activity in the Canary Islands. It is mandatory for all natural or legal persons who intend to carry out a commercial, entrepreneurial, professional or artistic activity in the archipelago. It serves mainly for the purposes of the Canary Islands Indirect General Tax (IGIC), the equivalent of VAT in the rest of Spain, but with generally lower rates.

Features of the Model 400

The Model 400 is mainly used for:

  1. Registration of new businesses: Anyone who wants to start a business in the Canary Islands, such as running a “vivienda vacacional” (vacation home), must fill out this form to register with the Census of Entrepreneurs and Professionals.
  2. Changes in tax information: Changes in location, changes in business or any other tax-relevant changes require submission of an updated Form 400.
  3. Cessation of business: In case of cessation of business, Form 400 must be submitted to notify the Canary Islands Tax Agency of the closure.

The Canary Islands Indirect General Tax (IGIC).

A tax peculiarity of the Canary Islands is the IGIC, with an ordinary tax rate of 7 percent, which is lower than the VAT in the rest of Spain. The Form 400 is closely related to the IGIC, as it is essential for the correct identification of economic activity for the purposes of this tax.

What is the Model 400 for?

The Model 400 has several central functions for the fiscal and administrative management of economic activities in the Canary Islands:

1. Registration for tax purposes

The first function of Form 400 is to register an economic activity for tax purposes. For example, if you want to start a “vivienda vacacional” business for your apartment, you must submit this form to the Canary Islands Tax Agency.

2. Notification of changes to the activity

If the business undergoes changes, such as a change of address or corporate purpose, these must be reported via Form 400.

3. Cessation of business.

When a business is discontinued, Form 400 must be filed to avoid continuing to be subject to IGIC-related tax obligations.

4. Fulfillment of tax obligations

The Form 400 is essential for tax compliance in the Canary Islands. It ensures that the business operates in accordance with local tax regulations.

How to Apply for Model 400?

If you plan to start a “vivienda vacacional” (vacation rental) business with your apartment in the Canary Islands, Form 400 is an essential step. Completing it requires you to enter specific details related to your business, including:

  • Identifying data: Name, address, and tax identification number of the person or company.
  • Activity data: Description of the activity, sector it belongs to, and address of the activity.
  • Type of operations: Types of operations that will be carried out, especially in relation to IGIC.
  • Applicable tax regime: Details of the specific tax regime applicable to the activity.

To request the Form 400, contact our agency. We will assist you every step of the way to ensure proper filing and registration of your “vivienda vacacional” business, ensuring compliance with all tax and legal regulations.

Importance of Model 400

The Model 400 is fundamental to the proper functioning of the tax system in the Canary Islands. It ensures that tax authorities can monitor and manage economic activities, ensuring compliance with local regulations. In addition, the proper administration of the Form 400 avoids penalties and legal problems related to failure to declare or report tax data.

Conclusion

The Form 400 is an essential document for anyone who intends to start a business in the Canary Islands, including the activity of “vivienda vacacional.” It is used to register, modify or discontinue a business, ensuring the proper fulfillment of tax obligations, particularly in relation to the IGIC. For proper filing of Form 400 and to start your vacation home business, contact our agency. We will be happy to assist you every step of the way.

Daniele Piccoli +34 635632009 +39 3518711203

tassa turistica mogan gran canaria
April 23, 2025 Daniele Piccoli No Comments Fees and Taxation, Short Term Rentals/Tourist Rentals, vivienda vacacional

Tourist tax in Mogán, Gran Canaria: a guide for vacation rental owners and hosts 2025

How to manage the tax in 2025

As of March 27, 2025, new legislation has come into effect in the Municipality of Mogán (Gran Canaria) that introduces a tourist tax. This measure affects all accommodations in the area, including viviendas vacacionales (vacation homes) booked through online portals such as Airbnb, Booking.com and the like.

What is the name of this law?

The tax was introduced through the “Ordenanza Fiscal Reguladora de la Tasa por Estancia Turística en el Municipio de Mogán, “ approved by the municipality and published in the Boletín Oficial of the Province of Las Palmas. It is the first municipal tourist tax in Spain, making Mogán a pioneer municipality in the national panorama.

What is the purpose of the tax?

  • Fund public services and tourism infrastructure, including transportation, city cleaning, waste management and tourism promotion of the area.
  • Promote sustainable tourism by balancing the costs resulting from high tourist flow with the economic contribution of visitors.

The tax burdens not just the mere pernation, but the provision of public services and activities related to the sustainability of tourism in the area.

How is the tax calculated?

The share was determined after a study of the costs attributable to tourism action, which account for 44.75 percent of the total population (including tourists and seasonal workers).

  • Total estimated daily cost: €3,330.38
  • Divided by 21,575 average occupied seats: €0.15 per person/day

How is the tax collected?

The tax is collected directly by the hosts or managers of tourist facilities:

  • Can be included in the final price or requested separately upon arrival
  • It is recommended to inform the guest at the time of booking

Should a receipt be issued?

Yes. The operator must:

  • Record the amount collected
  • Give a receipt to the customer marked “tasa turística”
  • Retain data for possible audits

Where and when do you pay the tax?

  • Payment: to the Municipality of Mogán through the Oficina Virtual Tributaria de Gestiona Mogán
  • Deadlines: April 1-20 and October 1-20
  • Tool: standard self-assessment form

Penalties for non-payment

  • Recargo of 5% if late but before enforcement proceedings
  • Recargo of 10% or 20% if enforcement proceedings initiated
  • Criminal penalties in serious cases (embezzlement)

Other useful information

  • Fee is finalist: earmarked exclusively for tourism services
  • Variable amount: based on the number of tourists and expected costs
  • No benefits provided
  • More than 48,000 people use municipal services, 21,574 of them tourists

Conclusion

Mogán’s tourist tax aims to improve tourism management and reduce the deficit caused by tourism. It is an innovative, sustainable and necessary measure. To adapt now signi

tasas de ibi y basura
September 13, 2024 Daniele Piccoli No Comments Fees and Taxation, Legislation/Laws

What is IBI and the Basura Tax in Gran Canaria: A Complete Guide for Property Owners

If you are a property owner in Gran Canaria or are considering buying a home on the island, it is essential to know about local taxes. The two main property taxes are theIBI Gran Canaria and the Basura Gran Canaria Tax. These taxes are mandatory for all home and apartment owners and cover essential services such as infrastructure maintenance and garbage collection. In this guide, we will look in detail at what the IBI and Basura Tax are, how they are calculated, and when they must be paid.

1. What is the IBI in Gran Canaria?

TheIBI (Impuesto sobre Bienes Inmuebles) is a mandatory annual property tax for all property owners in Gran Canaria. It is equivalent to the property tax found in many other countries and is used to finance municipal services such as road maintenance, street lighting, and local services.

Calculation of IBI Gran Canaria

TheIBI Gran Canaria amount is based on the cadastral value of the property, which is determined by the Spanish Land Registry. The cadastral value is usually lower than the market value and takes into account factors such as the property’s location, size, and type of construction.

Each municipality applies a percentage (rate) on the cadastral value, which varies depending on the area. For example, theIBI in Las Palmas may have a different rate than in tourist locations such as Maspalomas or San Bartolomé de Tirajana.

When do you pay the IBI in Gran Canaria?

IBI is paid once a year, usually between September and November, depending on the municipality. You can payIBI Gran Canaria at municipal offices, through online platforms, or through bank direct debit, which is a convenient way to avoid delays or penalties.

What happens if I do not pay IBI?

Failure to pay IBI can result in penalties, interest on late payments, and, in the most serious cases, legal action. It is critical to payIBI Gran Canaria by the due date to avoid problems, especially if you plan to sell your property in the future.

2. What is the Basura Tax in Gran Canaria?

The Basura Tax in Gran Canaria is another local tax that covers the cost of waste collection and disposal service. This service includes the collection of household waste and its disposal at municipal treatment centers.

Basura Tax Calculation Gran Canaria

The cost of the Basura Tax varies depending on the municipality and the type of property. For residential properties, the amount depends on the size of the property or the number of housing units. In some tourist areas, such as Maspalomas, the tax may be higher for properties rented to tourists.

When do you pay the Basura Tax in Gran Canaria?

The Basura Tax is generally paid once or twice a year, with due dates that may coincide with those of the IBI. Again, you can pay the tax through the municipality or by domiciling it with a bank.

What happens if I don't pay the Basura Tax?

Failure to pay the Basura Gran Canaria Tax can result in penalties and interest. Municipalities may take recovery measures to collect any arrears, so it is important to pay this tax on time.

3. How to Pay IBI and Basura Tax in Gran Canaria.

Both taxes, IBI and Basura Tax, can be paid in different ways:

  • In person at municipal offices or authorized banks.
  • Online, via the municipality’s website.
  • Bank Domiciliation, which is the most convenient method to avoid forgetfulness and penalties.

Many property owners in Gran Canaria choose to domicile both payments, simplifying the management of annual taxes.

4. Impact of IBI and Basura Tax on Owner's Budget.

The cost ofIBI in Gran Canaria can range from a few hundred euros for small apartments to higher amounts for villas or luxury properties. The Gran Canaria Basura Tax is generally lower, but it still must be considered as part of the property’s operating expenses.

For vacation rental owners in Gran Canaria, it is important to include these expenses in operating costs, along with utilities, maintenance, and management of tourist rentals.

5. Conclusions: Managing IBI and the Basura Tax in Gran Canaria.

TheIBI and Basura Tax are essential property taxes that every property owner in Gran Canaria must pay. Although they may seem complex, these taxes fund municipal services that improve the quality of life on the island. Before purchasing property, it is advisable to find out about local rates to avoid surprises.

In addition, it is highly recommended to domicile them with your bank to simplify payments and ensure you meet deadlines.

If you have any further questions about IBI Gran Can aria, Basura Gran Canaria Tax, or any other property-related tax issue, please contact your real estate advisor or a tax expert for assistance.

July 17, 2023 Daniele Piccoli No Comments Fees and Taxation, Legislation/Laws, Model 210

TAX RETURN FOR NON-RESIDENTS IN THE CANARY ISLANDS

TAX RETURN FOR NON-RESIDENTS IN THE CANARY ISLANDS

DO YOU HAVE PROPERTY IN GRAN CANARIA AND ARE BEHIND ON YOUR NONRESIDENT TAX RETURN AND DON'T KNOW HOW TO FIX IT?

DO YOU HAVE COMMUNICATION PROBLEMS BECAUSE YOU DON'T SPEAK SPANISH AND DON'T KNOW HOW TO FILE A TAX RETURN AND WHO TO CONTACT?

We are experts in Property Tax Management in Gran Canaria

dichiarazione-dei-redditi-per-non-residenti-gran-canaria

PROPERTY TAXES IN THE CANARY ISLANDS FOR NON-RESIDENTS

Many real estate investors who buy in Spain or the Canary Islands are unaware that they automatically become liable to pay local tax taxes.

If you are looking for assistance on Tax Management of your property in Gran Canaria, we are here to help you. We’ll take care of everything, you’ll just have to send us all the documentation we ask for via email.

Contact us, we will help you solve the problem before the Canary Tax Agency solves it for you!

Impuesto sobre la Renta de no Residentes (IRNR) is the income tax for all those who do not reside in Spanish territory, but have obtained income from real estate in Spanish territory.

WHEN YOU HAVE TO FILE YOUR TAX RETURN

IF YOU ARE A NON-RESIDENT OWNER WHO RENTS YOUR PROPERTY TO TOURISTS OR RESIDENTS
(Who rents it out to third parties)

Rental income, i.e., from Short Rent or Long Term Rent if you are not a resident of Spain, must be declared using Form 210 in the first twenty calendar days of January, April, July and October with respect to income whose accrual date is within the previous calendar quarter. In this case you will also have to file Form 420 and Form 425

IF YOU ARE A NON-RESIDENT OWNER WHO USES YOUR PROPERTY FOR PERSONAL USE
(Without renting it to a third party)

Imputed income from Urban Property: if the property has been vacant at any time during the year, Form 210 must be filed for that period. The return must be made during the calendar year following the accrual date.

INCOME FROM THE SALE OF REAL ESTATE

Within a maximum of 3 months after the period of one month from the date of transfer of the property has elapsed, Form 210 must be submitted

FAILURE TO DECLARE THE ABOVE TAX OBLIGATIONS CAN LEAD TO 95% PENALTIES FROM THE TAX AGENCY

Purchase our limited-offer service now, which includes YOUR NON-RESIDENT'S INCOME STATEMENT AND TAX PAYMENT SERVICE

CONTACT US NOW FOR YOUR STATEMENT

Don’t wait for the Canary Tax Agency to solve the problem. Contact us now and we will help you solve the problem.

Make your economic choices reflect what really matters to you!

  • Calle Green nº1
    Complejo MANGOLF VILLAS C.P.35106
    Salobre Golf-Maspalomas-Gran Canaria
    Canary Islands-Spain
  • info@propertyforsalegrancanaria.com
  • +34 635632009
  • +39 3518711203
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June 4, 2023 Daniele Piccoli No Comments Fees and Taxation, Short Term Rentals/Tourist Rentals, vivienda vacacional

DEDUCTIBLE EXPENSES VIVIENDA VACACIONAL

WHAT ARE THE TAX DEDUCTIONS FOR THOSE WHO HAVE A VACATION HOME WITH A REGULAR VIVIENDA VACACIONAL LICENSE IN THE CANARY ISLANDS?

There are many people who ask me this question during telephone or presidential informational interviews, so I decided to summarize them below for clarity.

MISCELLANEOUS UTILITIES.

Expenses incurred for utilities for your Vivienda Vacacional business may be deducted as essential operating costs for your business. These expenses typically include electricity bills, water bills, costs related to internet connection….but not only.

ORDINARY COSTS OF BUILDING ADMINISTRATION

Condominium administration expenses that may include maintenance of the building in which the property is located, maintenance of the gardens and swimming pool if present, and maintenance of the accounts by the administrator who in Canaria is very often represented by a company.

CLEANING FEES

Cleaning expenses, if carried out by specialized firms or contractors, can also be taken as a deduction. In fact, when professional services are used to clean the dwelling, wash linen and maintain it, the related expenses may be considered deductible.

COMMISSION OF BOOKING AND MANAGEMENT PORTALS

Of course, you will then be able to deduct all the invoices related to commissions from the various tourist booking portals, such as Booking, Airbnb, VRBO, and others that in order to provide you with visibility require you to pay a percentage of your rental income in return. This percentage will also be required of you by the eventual agency or person, company in charge of the management of your vivienda vacacional (checkin, checkout, assistance to the property and the tourist, emergency response, supervision cleaning service and property maintenance) and will also be tax deductible.

INSURANCE PREMIUM

The Vivienda vacacional law requires you to take out a specific insurance policy that covers any damages caused by tourists, to third parties, atmospheric or to the contents of the property for any eventuality. The annual premium you pay for this insurance will be deductible, according to the Personal Income Tax Law , from your taxes for the year in question.  

EXPENSES FOR EQUIPMENT OR ENDOWMENT OF THE BUILDING

When you own a vacation home there are numerous details to take care of to ensure a pleasant experience for your guests. From the bathroom and bedroom linens that are always in excellent condition, unstained and of good quality, the small appliances such as mocha coffee maker, water kettle, various sized cookware and kitchen utensils that are neither ruined nor rusted. All purchases made for your business can make a difference on your income and are tax deductible.

PROMPT ACTION AND MAINTENANCE

Also eligible for the deduction are all expenses incurred for emergency work performed by professionals such as electricians, plumbers or similar, as well as minor maintenance work such as painting walls or repairing locks by a carpenter.

THIRD-PARTY SERVICES

To run your business you may need professional third parties such as accountant, lawyer, real estate agency…all fees of these professionals inherent in your vacation rental are tax deductible.

TAXES

Property taxes, such as the Urban Property Tax (IBI) and garbage collection fee (Basura), which are own municipal taxes and cover the costs associated with ownership and waste management, can be deducted from personal or business taxes.

TIP

To ensure accurate management of your expenses, you should keep invoices from service providers. However, it is important to keep in mind that the ability to deduct these expenses is limited based on the number of days you had guests.

So be sure to keep a copy of all invoices from service providers to the property and professionals who operated during the time you hosted your clients or otherwise in reference to a booking that occurred at your vacation rental.

FOR MORE INFORMATION PLEASE FEEL FREE TO CONTACT ME

CONTACT ME
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Daniele Piccoli

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