Rental Tax in Spain
File Spanish Rental Income Tax Return Online
Spanish Tax Services & Fees
We provide tax return services to non-residents with property in Spain.
If you are a non-resident landlord in Spain, you are required to file rental income tax returns in both Spain (Spanish 210 Form) and your home country.
We understand that if a non-resident wants to file taxes in Spain, this process can be complicated, so our tax advisors will handle the tax paperwork, keep you updated throughout the process, and communicate directly with both your Spanish accountant (if applicable) and the Agencia Tributaria (the Spanish tax office) on your behalf.
We offer the following Spanish tax return services:
- Spanish deemed tax return filing
- Spanish property tax return filing
- Spanish Capital Gains Tax filing
- Assistance with Spanish tax payments
- Coordinating with your tax resident accountant
Our experienced tax advisors can take care of this responsibility for you, ensuring you meet all Spanish tax filing deadlines and avoid penalties or interest charges.
We can also help you navigate double taxation agreements, ensuring you don’t get taxed twice.
Even if your property has not been let, you may be required to file a Spanish income tax return. We have a range of plans to suit all types of properties – whether furnished or unfurnished.
Request a free no-obligation consultation with a tax advisor and file your Spanish tax return online.
Initial documents review – €150
If you are earning income from a property overseas, it is likely that you will have to file a tax return. This fee covers a review of your property-related documents and the initial set up of your tax filing with our tax professionals. We will review all your documents and help you file your tax return easily online.
Spanish Deemed Tax Returns – €60 (single owner – 1 property)
A deemed tax return is required when the property is not rented out either for a portion of the year or for the entire tax year. Property Tax International will help you file your tax return easily online.
Spanish Quarterly Rental Income Tax Returns – €100 per return
Preparation fee for tax return on Spanish rental income applies for a single owner for 1 property. A fee of €50.00 for each additional owner is due. Property Tax International will help you file your Spanish quarterly rental income tax return easily online.
Starting in 2024, you will need to report your rental income once a year instead of quarterly.
For income earned in 2024, you will submit your rental income report between January 1 and January 20, 2025.
This annual reporting replaces the previous requirement to file quarterly income tax returns.
However, for income earned in tax years before 2024, you can still submit quarterly income tax returns.
Complex filing fee for residents in the EU – 300€; outside of the EU – 220€
This is a complete service covering the necessary Spanish property tax returns (single owner – 1 property), and includes a detailed review of all supporting documents. Half of the fee will apply to each additional owner as to cover necessary rental income and deemed returns due. If you need additional information on how Property Tax International can help you with your tax declaration, you can also contact a member of our team.
Spanish Capital Gains Tax Filing – price will be based upon the complexity of the case and starts at €400
The price will be based on the complexity of the case. For additional information, you can also contact a member of our international tax team.
Registration fee – €90
Fee due for tax registration services and applies per individual.
Additional property – €75
This fee is due for 2nd and each subsequent rented property. If you have more questions regarding real estate taxes in Spain, you can also contact a member of our international team, and check how Property Tax International can help you.
Documents retrieval fee – €50
This fee will apply if you require our tax experts to obtain some documents on your behalf, excluding bank and mortgage statements.
Assistance with tax audit – starts at €99
Tax audit assistance pricing is determined by case complexity. For more details, reach out to a member of our international tax team.
Documents retrieval fee – €50
This fee will apply if you require our tax advisors to obtain some documents on your behalf, excluding bank and mortgage statements.
Administrative fee – €30
This fee is obligatory and due for each year of submission. It covers postage, phone calls, photocopying etc.
Assistance with tax payments – €30
Our team will help you transfer your tax liability to the local tax office. For additional information, you can also contact a member of our international tax team.
Save time and stress. File your Spanish property tax return online with Property Tax International.
Multiple years discount – 10%
Available where returns for 2 or more tax years are required. This discount is applicable to the annual fees excluding any once-off fees and administrative fees and does not apply where other discounts/reductions have been granted.
Multiple tax countries discount
Clients who avail of our tax-filing services for two (or more) countries can claim a 10% discount on our fees. For example, if you file a Spanish and French income tax return, we will reduce our fee by 10%.
This discount does not apply where other discounts/reductions have been granted.
Notes:
- All fees are inclusive of VAT.
- Prices are based on the provision of information in pre-agreed format – a surcharge of 20% may be applied for disorganized files.
- Prices are based on the provision of necessary backup documentation only – the inclusion of unnecessary documentation may result in the application of an additional charge.
Request a free callback from a tax advisor
When you request a callback:
- A Spanish tax advisor will contact you
- After specifying with you the services you need and the tax documents required, you will receive information regarding our final fees
- Before we can start working on your Spanish non-resident tax return, we will need you to share the necessary property information and tax documents with our tax professionals
Understanding Spanish rental income tax
Non-Resident income tax for EU/EEA residents: IRNR
Deemed rental income
Deemed rental income is also known as deemed tax or imputed income tax in Spain.
If you’re a non-resident who owns a Spanish property for personal use, the tax authorities calculate an “imputed income” for you.
You need to pay tax on the “deemed rental income” for your urban property, even if you’re not renting it out.
This imputed income is either 1.1% of the property’s “valor catastral” (cadastral value) or 2% of the “valor catastral” if it hasn’t been revalued in the last 10 taxable periods.
The deadline for non-residents to submit a deemed tax return is 23 December of the next tax year. For example, the 2023 deadline for deemed tax is 23 December 2024.
Property tax in Spain
Spanish Local Property Taxes (rates) are based on the rateable value of the property and generally vary between 0.4% – 1.1%. Rates depend on whether the property is urban or rural and varies per region. They are generally due from September to November each year. An annual local tax on mains drainage & refuse collection is also payable.
Spanish Capital Gains Tax on rental property (CGT Spain)
Non-residents in Spain are subject to Capital Gains Tax on investment property, with rates varying depending on their country of residence.
Non-residents from EU/EEA countries face a rate of 19% Spanish Capital Gains Tax (CGT Spain), while non-residents from other countries, including the UK, will encounter a rate of 24% on the gain from the sale of the property.
The purchaser must withhold a public treasury tax of 3% of the purchase price at the time of the sale and pay it to the Spanish tax authorities within a month of the transfer.
If the amount withheld by the purchaser exceeds the CGT, the seller may claim a refund of the excess amount. A Spanish CGT tax return should be filed within three months of the payment of the withholding tax.
It is important to consult with a property tax advisor to determine which option is most advantageous for your specific situation.
Spanish Wealth Tax
Non-resident owners of Spanish real estate may be obliged to pay wealth tax in Spain depending on the value of their Spanish property. The Spanish wealth tax rate ranges from 0.2% to 3.7% of the value of the property. There is a general exemption of €700,000 which is not subject to wealth tax.
Rental income tax for UK & Irish residents
If you are resident in the UK or Ireland, you will have to pay rental income tax in Spain for non-residents and report the revenue on your annual tax return both in Spain and your country of residence.
There are double taxation agreements in place between Spain and both Ireland and the UK, so double taxation relief will usually apply.
Our tax team can advise on double taxation relief and assist with the filing of your UK or Irish tax return and the Spanish non-resident tax return (Tax Form 210) you are obliged to file.
Request a free callback from a property tax advisor
Do non-residents pay rental income tax in Spain?
Yes. Non-resident property owners in Spain are obliged to pay tax on Spanish rental income. They must file a Spanish income tax return for non-residents (Form 210).
What is rental income tax?
For tax purposes, the Spanish authorities treat any earnings from renting out a property as taxable income. This means you must report this rental income each year and pay the associated taxes. In Spain, rental income is taxable, with residents being taxed at progressive rates after deducting eligible expenses, while non-residents are taxed at a flat rate of 24% on gross rental income (19% for EU/EEA residents), typically without deductions.
What are the tax rates for rental income in Spain?
Spain taxes rental income in the same way as regular employment income, with rates varying based on your residency status: ● Residents in Spain: Tax rates range from 19% to 47%. ● EEA tax residents renting in Spain: A flat 19% tax rate applies to your rental income. ● Non-EEA tax residents renting in Spain: If you’re a non-EEA resident, a flat tax rate of 24% is charged on your rental income.
What is IVA?
In Spain, rental properties are exempt from IVA (VAT) if they are solely used as residences. This exemption also extends to furniture, fixtures, garages, and any additional structures. However, if the property serves a dual purpose, such as a residence and an office, IVA becomes applicable
What is IVA on holiday rentals in Spain?
In Spain, IVA (VAT) typically doesn’t apply to holiday rentals unless you provide additional services to guests, such as cleaning or laundry, for which you charge. However, IVA must be applied to the commission fees charged by booking platforms like Airbnb for managing your rental property.
What expenses can be deducted?
If you’re a resident of an EU member country, Norway, or Iceland, you can deduct expenses such as community fees, council taxes, insurance, utilities (water, electricity), mortgage interest, real estate agent fees, cleaning, laundry, marketing expenses and maintenance and repair costs. You can only deduct the portion of expenses that corresponds to the days the property is rented or available for rent, and only for expenses you personally pay, not those covered by the tenant. Non-EU Residents: Residents of non-EU countries (excluding Norway and Iceland) cannot deduct any expenses.
What expenses are not allowed?
The Spanish tax authorities do not allow deductions for costs related to upgrading or improving a property, including expenses for adding new rooms or installing a swimming pool.
What is the maximum amount I can claim for expenses?
You can only deduct expenses up to the amount of your total income. For instance, if your rental income is €12,000 for the year, you can’t claim more than €12,000 in expenses. If your expenses exceed this amount, you can carry over the extra expenses to the next four years, as long as they do not surpass your total income.
Is everyone eligible to deduct expenses for rental income in Spain?
These deductions are available only if you’re a Spanish resident or a tax resident of the EEA. Non-EEA tax residents aren’t eligible for any deductions and must pay tax on the entire rental income.
Are there any tax deductions available for long-term rental properties in Spain?
Yes, there are substantial incentives for long-term rentals. If your tenant uses the property as their primary residence, you can deduct 60% of the taxable amount (after expenses). However, this deduction is only available for long-term residential rentals and does not apply to holiday lets.
How often do I need to declare and pay taxes on this income?
Until December 31, 2023, rental income must be declared quarterly, within 20 days after the end of each quarter. However, starting January 1, 2024, rental income can be declared annually. This change was made to address concerns from non-residents who faced an unfair burden compared to residents. You can still choose to declare and pay the tax quarterly, but since fees are charged for each declaration, the annual option is generally more cost-effective. Income earned in 2024 should be declared by January 15, 2025. You must also submit an annual tax return by the end of each year for the previous year (for example, by the end of 2024, you need to declare income for 2023), even if you did not earn any income from the property.
What amount should I report as income: the rent paid by the tenant or the amount I receive after the estate agent’s commission?
You should declare the full rent paid by the tenant, while you can deduct the commission or fees charged by the estate agent. The reported income is the total rent received from the tenant.
What if I pay late?
You should always ensure your tax affairs are in order by the dates that are stated above. Even a single day late can result in the Tax Office imposing a “late fine” of up to 20% plus interest.
When do I need to file a Spanish deemed income tax return?
As a non-resident, if your property is an urban property and it is not rented out, you must still pay Income tax in Spain on ‘deemed’ rental income. The deadline for non-residents to submit a deemed tax return is 23 December of the next tax year. In case the property is partially let Spanish Deemed income tax is applicable only for the period in which the property was vacant or occupied by the owner for personal use.
How is Spanish deemed income tax calculated?
The taxable base of the deemed rental income is calculated at 2% (or 1.1% if the value was revised in the past 10 years) of the rateable (cadastral) value of your property. The taxable base is then multiplied by the general income tax rate in Spain.
What is the ‘cadastral’ value of a property?
The cadastral value is the value set by the local Town Hall on a property. It is used for calculating the local property taxes (rates) and Spanish Deemed rental income tax.
When is the deadline for filing a Spanish rental income tax return?
Income must be reported, and taxes must be paid within a month of receiving rental income in Spain. Alternatively, quarter Spanish property income tax returns could be filed.
The quarterly filing option – will be applicable for tax years: 2020-2021-2022-2023- with the deadlines: 20 April, 20 July, 20 October, and 20 January as before.
From 2024, the deadline to file annual rental income tax is the following year: 1- 20 January, or 1- 15 if the client has set up a direct debit.
Am I obliged to pay Spanish wealth tax?
Non-residents in Spain may pay Wealth Tax depending on the net value of their Spanish property. The tax rate ranges from 0.2% to 3.7% from the value of the property. There is a general allowance of currently €700,000 which is not subject to wealth tax.
What is the current rate for Spanish Capital Gains Tax?
Spanish Capital Gains Tax rate is currently 19.00% on the gain from selling the property.
What are the Spanish CGT implications that I may have as a non-resident?
Under Spanish law, in case the seller is a non-resident, the purchaser must withhold Public treasury tax at 3% of the purchase price and pay it over to the tax authorities within a month of transfer. A reclaim may be required if the 3% paid exceeds the final Spanish Capital Gains Tax liability.
The Spanish Capital Gains Tax return should be filed and paid within three months of the withholding tax payment.
What is Tax Form 210?
Tax Form 210 is an annual non-resident tax return for landlords who obtain income in Spain without a permanent establishment. It is also known as the Spanish Non-Resident Income Tax without permanent establishment. This form is used to declare and pay taxes on income such as rent from property, capital gains from the sale of property, and other miscellaneous income. Our tax advisors can file your annual Spanish rental income tax return on your behalf.
I file an annual Income Tax for Non-Residents (form 210) every year. Does this cover the tax for rental income?
No, it does not. If you’ve been using form 210 and paying a consistent amount, you haven’t been declaring rental income. Instead, you’ve been paying a fixed amount based on a “deemed” income due to being a non-resident with property in Spain. However, you won’t be taxed twice for the same period; when you complete your Annual Income Tax Declaration, you’ll only be taxed for any days the property wasn’t rented out.
What if I rent out my property for only part of the year?
If you rent out your property for only part of the year, you need to adjust your expenses proportionally. For example, if you rent it for six months, you only deduct half of your expenses.
How to file a Spanish property tax return online?
Property Tax International (PTI Returns) will assist you remotely online with the entire process of preparation and filing of tax forms in respect of Spanish rental income, deemed income, or capital gains. PTI Returns will keep you updated throughout the process and communicate directly with the Spanish tax office on your behalf.
Property Tax Rates in Spain and Deadlines
| Tax Year | 1st January – 31st December |
| Income Tax Rate | 19% for EU residents (after expenses), and 24% for non-EU residents on gross rent. |
| Rental Income Tax Deadline | 1 month after rent is received. Quarterly returns are accepted by the 20th of the month following the end of the quarter. Deemed tax returns – 23 December. Starting in 2024, you must report your rental income once a year instead of quarterly. For income earned in 2024, you will have to submit your Spanish rental income tax return between January 1 and January 20, 2025. This annual reporting replaces the previous requirement to file quarterly income tax returns. However, for income earned in tax years before 2024, you can still submit quarterly income tax returns. |
| Capital Gains Tax Rate | 19% |
| Dual Tax Agreement with Ireland | Yes |
| Dual Tax Agreement with the UK | Yes |
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