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Rentals in Spain by residents
Residents must state the rental earnings in the income tax return. This declaration must be submitted by 30 June at the latest. Rental income means the total rental income minus the total of the deductible items as stated below.
If the property is leased with long-term contracts, there are possibilities for substantial reductions.
Rentals in Spain by non-residents
Non-residents must submit a declaration about each calendar quarter in which the property has been rented out. About calendar quarters in which no rental has been made, no declaration needs to be made.
If the deductible costs over a quarter were higher than the rental income and there is a negative rental result, different dates apply. It is important that these dates and deadlines are carefully monitored, otherwise fines may be issued. In this case, contact us without obligation to request these dates and terms.
Examples of deductible costs are:
• Mortgage interest
• Depreciation 3% of the land register value of the property (excluding land, is on IBI)
• Insurance, IBI (OZB), garbage tax, ..
• Commissions for rental companies and costs of management companies
• Costs for cleaning companies
• Renovations, repairs, painting, investments
• Contributions Association of Owners, contributions door costs, cleaning building, ..
• Water, gas, electricity if this is included in the rent
• Other costs explicitly included in the rent (internet, wifi, ..).
Not deductible (for example):
• Travel expenses such as airline tickets and car rental to visit the property (s)
• Possible dinners etc. with tenants
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