Common accounting mistakes in holiday villas

While most mistakes don’t have immediate consequences, they can lead to penalties, financial losses, or legal issues.
Here are the most common accounting mistakes and how to prevent them.

1. Not recording all income

Many owners fail to record all income correctly, especially when using multiple booking channels: rental platforms, direct bookings, or agencies. It’s also common to forget to include income from additional services, events, or retained security deposits.

Solution: use accounting software and cross-check your bookings with actual payments received. Record every source of income to maintain full control and make tax filing easier.

2. Mixing personal and property expenses

Using the same bank account for personal and villa-related expenses creates confusion and may cause you to lose tax deductions.

Solution: open a separate bank account exclusively for the villa. This will help you easily identify deductible expenses and avoid accounting mistakes.

3. Not applying the eco-tax

To claim a deduction, you must have the corresponding invoice. It’s common to lose receipts or make cash payments without obtaining proof.

Solution: digitize all invoices and make payments via a card or an account linked to the property.

Remember: according to tax regulations, invoices must be kept for at least 4 years from the date of filing the related tax return.

4. Not keeping expense invoices

To claim a deduction, you must have the corresponding invoice. It’s common to lose receipts or make cash payments without obtaining proof.

Solution: digitize all invoices and make payments via a card or an account linked to the property.

Remember: according to tax regulations, invoices must be kept for at least 4 years from the date of filing the related tax return.

5. Ignoring platform commissions

Commissions from Booking, Airbnb, and other agencies are often recorded incorrectly—or not at all—distorting your property’s real profitability.

Solution: always record gross income (the full amount paid by the guest) and enter commissions as a separate expense.

Useful tip: platforms usually charge between 10% and 18% of the total booking amount, depending on the account type and country.

6. Filing late (or not filing at all)

One of the most common mistakes is missing tax deadlines. This leads to unnecessary surcharges and penalties.

Solution: set up a simple tax calendar with the forms that apply to you (VAT, income tax, eco-tax) or work with a professional accountant.

Important: penalties for late filing can range from 50% to 150% of the undeclared amount, depending on the delay or recurrence.

Conclusion

Keeping accurate and up-to-date accounting provides peace of mind and legal security. If you prefer to focus on managing your villa and delegate the accounting side, I can help.

I offer a complete accounting and tax service tailored to the Balearic tourism sector, including full tax submissions.

Do you own a holiday villa?

Get in touch and we can review your accounting together, with no obligation.