Mallorca Property: Landlords cheat tax authorities about the tax from the income of long-term rentals in Majorca

 

The rising number of long term rentals in Mallorca leads to a curious Side effect. The tax assumptions rentals in Majorca are not or not properly declared.

The majority of the owners of apartments in Majorca, the monthly rent payments collected black. This emerges from a study commissioned by the union of the tax experts (Gestha) unveiled on Tuesday (27.11.). Accordingly, nearly 52 percent of rentals are not mentioned in the Balearic Islands in the income statement, a total of 28,400. The damage is estimated at around 78 million euros. The reforms of recent years with the tax return had proved ineffective in practice, they say. Thus, the tax authority may, among other things, gas and electricity bills to see in order to verify whether an apartment is actually empty.

Throughout Spain, the number of black rented dwellings is estimated to one million. Not included in the study are apartments available to rent in Majorca for the most part also unofficially. The basis of the study were data from tenants against tax, the projected rent over. In the Spanish tax authority has indicated that its own calculations led to a reduced number of tax offenders.