Home Away leaves losses in Spain and earns 802k euros in 2017

This article was written and published in Spanish and has been translated into English via Google Translate. Click here to read the original article.

Rental companies for tourists continue to grow in parallel with a tourist sector which has no limits. And a good example is the multinational Home Away, which has come out of losses in Spain by registering in 2017 a profit of 802,000 euros.

According to recent accounts in the Mercantile Register, the multinational reveals that the turnover in Spain soared 40.3% to 26.3 million euros compared to 18.7 million registered twelve months earlier. An unprecedented growth in which the largest contribution comes from foreign tourism compared to a lower contribution from the national. In particular, the turnover linked to national tourism fell from 11.1 to 8.3 million euros, while the turnover linked to European travelers shot up from 1.6 to 6.6 million euros. Finally, the invoicing linked to Asian and American tourist reserves also grew strongly and went from 6.1 to 11.3 million euros, adding 43% of the market share.

Pay eight times more taxes than Airbnb despite having a much lower market share

These figures are well above those of Airbnb in Spain, although the latter is the company with the largest market share, with nearly half a million homes for rent. In 2017, Airbnb invoiced 4.6 million euros and earned 286,000 euros. How is this produced? The bulk of the income obtained by Airbnb in Spain, coming from the commissions charged to the owner of the house and the tenant of the tourist apartment, are taxed to the parent in Ireland, while in Spain only marketing services are billed. That is what also causes a significant gap in the taxes paid by both firms for their activity in Spain. While Airbnb paid 72,152 euros for corporate tax, which taxes business profits, Home Away paid 548,879 euros, almost eight times more . In fact, the fiscal bill of the latter doubled in 2017.

Another element that distinguishes them is that Airbnb will have to provide their clients' data to the Treasury this month, while Home Away will not have to do so since it is an ad portal.

This article was written and published in Spanish and has been translated into English via Google Translate. Click here to read the original article.

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