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Tax on holiday rental incomes in Spain

Do you get rental incomes from your property in Spain?

Do you know how to declare them?

We would like to inform you about how to declare your rental incomes in Spain. Depending the owner tax residence country and whether the rental is long-term or holiday rental, the way to declare the rental incomes could be different.

Owner tax resident in Spain

Rental incomes will be declared on the general tax base and the tax rate goes from 19% to 47%.

On the other hand, the gross income obtained from the property rental has to be declared. In relation to deductible expenses, the following ones could be deducted:

  • Mortgage interest on loans obtained for the purchase of the property

  • Local property taxes (IBI)

  • Community owners fees

  • Home insurance payments

  • Repair and maintenance expenses

  • Supplies costs if they are paid by the owner

  • Real estate agency expenses

  • Furniture depreciation expense

  • Property depreciation expense

In the case that the property is rented for living and the length od the rental agreement is longer than one year, a 60% reduction could be applied to the profit obtained. If the incomes come from holiday rental, this reduction could not be applied. In addition, in the case of holiday rentals, some expenses will be deductible proportionally to the number of days that the property has been rented.

Owner non tax resident in Spain

Non tax residents in Spain have to declare the gross income obtained from the rental of their properties. On the other hand, residents of a European Economic Area (EEA) country could deduct the same expenses as tax residents in Spain. On the contrary, non tax residents in a EEA country have to declare all their gross incomes and could not deduct any expenses related to the property.

The tax rate is 19% for tax residents in a EEA country and 24% for tax residents outside the EEA zone.

If you own a property in Spain and it is rented, please do not hesitate to contact Tax&Law Consulting and we will advise you about how to save as much taxes as possible.

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