Tax-deductible expenses for a holiday home in Menorca

Tax-Deductible Expenses for Personal Income Tax (IRPF) if You Own a Holiday Rental Property in Menorca

If you own a holiday rental property in Menorca and rent it out to tourists, it’s important to understand your tax obligations—but also your rights as a taxpayer! One of the most important aspects is knowing which expenses you can deduct in your income tax return.

At SOM Menorca, specialists in holiday rental management with over 30 years of experience, we clearly explain which expenses are considered tax-deductible to help you optimize your taxation legally.

Main Tax-Deductible Expenses for Holiday Rentals

Below is a list of the most common expenses you can deduct if you own a tourist rental property:

Maintenance and Repair Costs

• Appliance repairs

• Painting, minor renovations

• Replacement of damaged furniture
  (Upgrades or expansions are not included, as these must be depreciated.)

Utilities

• Electricity, water, gas, internet

Cleaning and Service Expenses

• Laundry services

• Cleaning between guest stays

• Hygiene items (toilet paper, soap, etc.)

• Welcome packs

Management Costs

• Agency fees (such as SOM Menorca)

• Commissions paid to platforms like Airbnb, Booking, etc.

• Advertising and marketing expenses

Taxes and Fees

• Property tax (IBI)

• Local rubbish collection tax

• Home insurance

• Community/HOA fees

Other Deductible Expenses:

• Mortgage or loan interest for the purchase or renovation of the property

• Home insurance, liability insurance

• Property depreciation, typically 3% annually on the higher of either the purchase price or cadastral value

• Depreciation of furnishings and appliances, usually 10% annually on their purchase cost

Please note: For the following expenses—property tax, rubbish tax, community fees, utilities (electricity, water, internet), insurance, mortgage interest, and depreciation—you may only deduct the proportion corresponding to the days the property was actually rented out.

Example: If your holiday rental was rented for 100 days, you may only deduct the portion of the listed expenses that corresponds to those 100 days.

Important!
Renting out your property as a holiday rental in Menorca can be a great source of income, but it also comes with tax responsibilities.
Understanding and correctly applying deductions will help you maximize your income and avoid penalties from the tax authorities.

At SOM Menorca, we not only handle the full management of your holiday rental but also provide expert tax advice.

Questions about the taxation of your holiday rental?
Contact us with no obligation. We’ll help you make the most of your property—legally and with peace of mind.