The car sitting outside your home in Spain could be earning you money this summer

A car left unused outside a home in Spain can be rented to holidaymakers for hours or days, offering owners a possible extra income during the busy summer months. But platform fees are to be taken into consideration, earnings must be declared and detailed payment information can reach the Spanish Tax Agency.

How regular parked cars are becoming popular summer rentals in Spain

A household’s first or second car can sometimes sit outside a home for most of the week while insurance, road tax, servicing and repairs continue to cost owners. Peer-to-peer platforms are offering another option: letting a resident or holidaymaker book it and use it when the owner doesn’t need it.

Amovens currently advertises more than 20 thousand cars in Spain, with bookings available from one hour to 90 days. Some vehicles can even be opened through the app, removing the need for an in-person key handover. 

The daily price, however, is not the owner’s final return. Under the platform’s current terms, its management fee for private owners is 22 per cent of the rental-period amount. The owner is then paid after management and insurance charges have been removed.

Hacienda receives rental totals from car-sharing platforms

As tempting as it may seem, income from a few summer bookings shouldn’t be treated as invisible pocket money. The European Union requires platforms to report information about people earning money through specified activities, and Spain’s Tax Agency includes in this the rental of any form of transport. For reportable owners, that information can include their name, address, tax identification number, date of birth and financial account. Platforms also report the total that has been paid, the number of activities each quarter and commissions, fees or similar amounts retained.

The exemption that is often discussed online for fewer than 30 transactions and no more than €2,000 applies to selling goods. Spain’s Tax Agency does not list the same small-seller exemption for vehicle rentals. Car-rental earnings are taxable and should be included in the annual income-tax return, whether the owner is a private individual or self-employed. 

A small scratch could leave the renter facing a €900 excess

For holidaymakers, renting a local person’s car may be the cheaper option, help avoid airport queues, or provide a vehicle close to their accommodation. Nevertheless, the final price does still need checking. Private vehicles booked through Amovens are automatically covered by comprehensive insurance provided by Omocom, according to the platform. The standard excess is €900; however, there are paid options that can reduce it down to €350 or €100.

The terms state that the excess applies to each separate damage, which means that two distinct areas of damage can result in two excesses. A visitor who is not a resident in Spain also pays €2 for every rental day. Further daily charges apply for drivers under 25, an additional driver or permission to take the car abroad.

A variable deposit may also be required, depending on the vehicle, booking length, renter’s age and other details. Amovens says the balance is normally returned within three to ten days, although the bank may take longer to display it. 

Pickup photographs can decide who pays for existing damage

The legal rental agreement is between the owner and renter. Amovens states that it facilitates the booking but is not a party to that contract. Renters must generally be at least 21 and have held a driving licence for one year. Private cars must be roadworthy, less than 15 years old and have fewer than 300,000 kilometres recorded. Both sides should ensure scratches, fuel, mileage and the vehicle’s condition are accurately recorded through the app before it moves. The terms warn that damage not registered at collection may later be attributed to the renter.

Owners considering summer bookings can start the side hustle and see where it takes them, but should confirm that any finance or renting contract permits the car to be hired out. 

Renters should compare the final pricing rather than the headline daily rate, including the excess, deposit, non-resident charge and extras. The arrangement could save time and money for renters and owners, as long as there are no hidden costs or scratches.