Taxation of Rental Properties

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Posted and filed under Taxes in Spain.

What are the tax implications of renting out a Spanish property?

Are you a non-resident who owns a holiday home in Spain which you they rent out?

The rental income of non-Spanish residents should be declared in Spain even it is properly declared in the country where you are tax resident (e.g. the UK which does expect its residents to declare any income from holiday rentals).

There is a special form for non-resident Spanish property owners and the rent should be declared on one of these forms every time some is received. Alternatively, you can group all the rentals from a quarter together e.g. 1st April – 30th June and declare on one form.

If you jointly own the rental property with someone else (e.g. your spouse) both must submit forms. The names and NIE numbers of the people who rented the property should be included. There are no deductible expenses for this type of income for non-residents. Forms must be presented 15 days after the quarter end.

If the property is only rented out for part of the year, maybe even only a few weeks in the summer then the rent must be declared in the manner described above but the period during which there is no rental is also subject to a separate tax – the non-resident tax that all holiday home owners who don’t rent out their properties face.

 

Many people choose to ignore declaring rental income, you should do it properly. Please contact us to see if we can help. 

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