Rental Tax

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    • #51731

      Mark ( Admin ),
      I have read many articles on this subject, and I am most inpressed by your response. In one article you stated that as a non resident tax on rental income is 25% without deduction. You also stated that residents only pay 50% of the tax rate which I assume is 25%, on rental income, and almost all deductions are allowed. My solicitor has advised me that if the property is rented out on my behalf by a Spanish company they can offset my rental income tax with deductions from my property expenses.
      Your comments please.

    • #61776


      The RESIDENT tax rate is NOT 25% of the gross. This tax rate (25% of gross rental income) only applies when the landlord is a non-resident.

      Residents will pay income tax on their overall income, including income from rents. The tax rate they pay will depend upon their annual income.

      However, because the government wishes to stimulate the rental sector, RESIDENT landlords are offered certain benefits, including reduced income tax rates specifically on rental income. Many property-related expenses are also tax deductible for residents who rent out property.

      I am not a tax expert, so I have to defer to the authority of anyone who is. But from what I can tell you have been advised that if you rent out your property through a 3rd party Spanish-company you will be able to take advantage of tax-deductible expenses. To the best of my knowledge this is not the case. As far as I am aware, you can only deduct expenses if you are RESIDENT, or if you own the property via a Spanish-registered and locally based company.



    • #61778

      Directly taken from the official Spanish Tax Authority English web page (AEAT)


      The income to be declared in this case is the total amount collected from the tenant, without deducting any expenses.

      This income is chargeable when it is claimable from the tenant or when it is collected (if earlier). Each rent due is taxed separately and, consequently, a return must be filed for each rent due.

      Nevertheless, collective returns may be filed which may include various chargeable income of one or more taxpayers falling within a calendar quarter. If the collective return includes the income of several taxpayers, the person filing it must be a representative or one of the persons which the law regulating this tax defines as being jointly and severally liable (payer or administrator).

      – Tax return form: in accordance with the foregoing, there are two possibilities:

      . Form 210. Ordinary return, using general section 210-A and indicating income type 01.

      . Form 215. Collective return. Also indicate income type 01.

      – Filing period: for ordinary returns (form 210), the deadline is one month after the date on which the rent is due. Collective returns (form 215) relating to a quarter must be filed within the first 20 calendar days of the month of April, July, October or January following the first, second, third or fourth calendar quarter, respectively.

      – Place of filing: the Branch of the State Tax Administration Agency corresponding to the place where the property is located.

      – Tax rate: 25%.

      Confusing??? you should have a look to the spanish version… it’s even worst!!!! 😡


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