Editorial transparency and use of artificial intelligence
This article forms part of the CostaLuz Lawyers blog and is published for general informational and educational purposes only. It was prepared with the assistance of artificial intelligence tools and, before publication, was substantively reviewed and editorially approved by Maria de Castro, a Spanish-qualified lawyer registered with the Cádiz Bar Association under number 2745, founder of CostaLuz Lawyers and the person responsible for the editorial review of the published content.
This article does not constitute legal, tax, immigration, employment, estate-planning or investment advice and does not replace an individual assessment and the professional work of the appropriate CostaLuz Lawyers specialist. No action or omission should be based solely on this information.
The expensive error landlords make in Spain is not keeping the invoices and records that justify their deductions — by the time of a tax inspection, it’s too late to reconstruct them.
How is rental income taxed in Spain for non-residents? If you let a Spanish property you must declare the rent on the non-resident return (Modelo 210), filed once a year — 1–20 January for 2024 and 2025 income, 1–20 April of the following year from the 2026 tax year. Landlords resident in the EU/EEA can deduct running costs and are taxed on the net; others are taxed on the gross rent. This guide shows how to work it out and file.
Tax on Rental Income Spain
Rental income in Spain is taxed differently depending on whether the owner is resident, EU/EEA non-resident, or non-EU non-resident. Residents are taxed progressively, while non-residents may pay flat rates depending on nationality and treaty rights.
Certain expenses may be deductible, including mortgage interest, repairs, community fees, insurance, and depreciation. However, the deductibility rules differ significantly depending on residency status.
Many landlords fail to keep proper invoices or tax records, which later creates problems during tax inspections or when claiming deductions.
This is general information, not definitive legal advice — every case requires individual analysis.
Spain has traditionally been a country with a low percentage of tenants, but over the last few years, the number of people who prefer to rent rather than buy has risen considerably. This increase along with fiscal incentives for landlords makes buy-to-let an attractive option. If you’re considering letting your home, read this guide to taxes on rental properties in Spain.
Quick Answer: Rental income in Spain is taxed at 19%-47% for residents (progressive scale), 19% flat for EEA non-residents, and 24% flat for non-EEA non-residents. Residents renting long-term can deduct up to 90% of net rental income under the 2024 Housing Act. Non-residents outside the EEA cannot deduct expenses. Always declare rental income via Modelo 100 (residents) or Modelo 210 (non-residents).
In it, we look at how rental income is taxed, deductible expenses for both long and short-term rental properties and the deductions you can apply to the taxable amount.
To ensure you comply with all your tax obligations in Spain, use a professional to represent you. Find out more about tax representation.
What is rental income?
Not sure where to start? Contact us directly and we’ll guide you through your specific situation.
Related: If you are buying mainly to let the property out, the legal risks of buying a rental property in Spain.
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For tax purposes, the Spanish tax authorities consider any money you receive from letting a property as part of your taxable income. As a result, you must declare this income annually and are liable for tax on it.
However, you don’t pay tax on the full amount; first, you deduct eligible expenses and then, if applicable, apply further deductions.
Read a free guide to buying Spanish property.
What happens if you live off rental income?
If your livelihood comes from rental income, it is considered property capital income and a different tax regime applies. Note that you must fulfil a series of conditions for this regime such as have a full-time employment contract for the management of the rental properties.
What about IVA?
There are no IVA (VAT) taxes on rental properties in Spain if the tenant uses them exclusively as a home. The same exemption applies to the furniture, fittings, garage and any annexes.
Note, however, that the moment the property has a mixed-use – for example, a home and lawyer’s office – IVA is applicable.
Read the Spanish tax authorities FAQs on rental properties in Spain.
What about IVA on holiday lets in Spain?
If you have a holiday let in Spain, you are not generally liable for IVA unless you offer services and charge holidaymakers for them. Examples of these include cleaning and laundry. You must apply IVA to the commission charged by booking platforms, e.g. Airbnb, for letting your property.
What are deductible expenses?
You’ll be pleased to hear that the list of deductible expenses runs long, although there are certain exceptions (see the next question below). Expenses that you can deduct from your rental income include:
- Mortgage interest on loans for the purchase or refurbishment of the property.
- Costs associated with the purchase of the property, for example, transfer tax and legal fees.
- Non-national taxes, e.g. local council rates (IBI).
- Upkeep and repair costs.
- Community fees.
- Insurance policy payments.
- Utility fees, i.e. gas, water and electricity costs if you pay them, not the tenant.
- Marketing costs if you promote your property on letting platforms.
What can’t I include as an expense?
The Spanish tax authorities don’t allow you to include the costs associated with upgrades or improvements to a property. You also cannot claim for expenses involved in an extension, e.g. adding another room or a swimming pool.
What is the maximum amount I can claim as expenses?
The maximum deductible is no higher than your total income. So, if, for example, your rental income is €12,000 for the year, you cannot claim more than €12,000 in expenses.
However, if your expenses are higher, you may deduct the excess amount over the next four years providing that the amount does not exceed your total income.
What happens if I only let my property for part of the year?
If your property isn’t rented for the entire year, you apply the proportional amount to your expenses. For example, if you let it for six months, you divide your expenses by 50%.
Can anyone deduct expenses for rental properties in Spain?
The above deductions only apply if you’re a Spanish resident or EEA tax resident. If you’re a non-EEA tax resident, you cannot take advantage of any deductions and therefore pay tax on the full amount.
Are there any deductions for taxes on long-term rental properties in Spain?
Yes, there are generous incentives for this type of rental. If the tenant is living in your property as their permanent home, you may deduct 60% from your taxable amount (income minus deductible expenses). However, this deduction only applies to long-term rentals for properties used as homes, not holiday accommodation.
What are the tax rates on rental income in Spain?
Spain applies the same taxes to rental income as the regular income you earn from employment. The rates vary depending on your residence status, as follows:
Residents in Spain – tax rates range from 19% to 47%.
EEA tax residents renting property in Spain – a flat rate of 19% is applied to your rental income.
Non-EEA tax residents renting property in Spain – if you are not an EEA tax resident, you’re liable for tax at a flat rate of 24% on your rental income.
Relocating to Spain? Use the NLV hub (requirements + timeline + checklists): Non-Lucrative Visa Spain (2026).
Frequently Asked Questions About Rental Tax in Spain
How much tax do I pay on rental income in Spain as a non-resident?
Non-residents from the EEA pay a flat 19% tax on net rental income (after deductible expenses). Non-EEA residents pay 24% on gross rental income with no expense deductions allowed.
Can I deduct mortgage interest from my Spanish rental income?
Yes, if you are a tax resident in Spain or an EEA non-resident. Deductible expenses include mortgage interest, insurance, maintenance, community fees, and depreciation (typically 3% of the construction value).
What is the 90% rental income deduction in Spain?
Under the 2024 Spanish Housing Act, landlords renting long-term residential properties can deduct up to 90% of their net rental income in designated stressed housing zones, provided the rent is reduced by at least 5% versus the prior contract.
Do I need to pay tax on Airbnb income in Spain?
Yes. Short-term rental income from platforms like Airbnb must be declared to the Spanish tax authorities. Residents use Modelo 100 in their annual return; non-residents file annually via Modelo 210 (1–20 January for 2024 and 2025 income; 1–20 April of the following year from the 2026 tax year).
What happens if I do not declare rental income in Spain?
The Spanish tax authorities (Agencia Tributaria) can impose penalties of 50%-150% of the unpaid tax plus interest. Automatic exchange of information agreements with over 100 countries mean undeclared income is increasingly detectable.
How can I get more information?
As with all fiscal matters, taxes on rental properties in Spain are complicated. To save time and stress as well as avoid potential problems with the Spanish tax authorities, get professional help from the experts.
Our team of tax advisors will be only too pleased to help – just get in touch for a free consultation.
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Related Tax Guides for Expats in Spain
Related Rental & Property Law Guides
Rental Tax Rates: Resident vs Non-Resident
| Category | EU Resident | Non-EU Resident | Spanish Resident |
|---|---|---|---|
| Tax Rate | 19% (net income) | 24% (gross income) | Progressive 19–47% |
| Deductible Expenses | Yes | No (but see court ruling) | Yes |
| Filing Form | Modelo 210 | Modelo 210 | IRPF (Modelo 100) |
| Filing Deadline | Annual (Jan, since 2024) | Annual (Jan, since 2024) | Annual (June) |
| Tax Treaty Relief | Yes (if applicable) | Yes (if applicable) | N/A |
Related Property Buying Guides
Key Information Summary
- Buying Property in Spain — Complete Legal Guide (2026)
- Costs of Buying Property in Spain (2026)
- Transfer Tax Calculator
- Buying Off-Plan Property in Spain
- Buy Property with an Independent Lawyer
- Rental Law in Spain
Frequently Asked Questions
Q: What taxes do I pay on rental income in Spain?
Non-resident landlords pay a flat 19% tax (EU/EEA residents) or 19% on gross rental income through Modelo 210, filed annually — each January for 2024 and 2025 income, and 1–20 April of the following year from the 2026 tax year. Resident landlords declare rental income in their annual IRPF return and can deduct allowable expenses such as mortgage interest, repairs, insurance, and community fees.
Q: Can I deduct expenses from my Spanish rental income?
Spanish tax residents can deduct mortgage interest, property taxes (IBI), community fees, insurance, maintenance costs, and depreciation (3% of construction value) from rental income. Non-EU non-residents cannot deduct expenses, while EU/EEA non-residents can deduct proportional expenses directly related to the rental activity.
Q: Do I need a fiscal representative for rental tax in Spain?
Non-EU/EEA property owners are legally required to appoint a fiscal representative in Spain. EU/EEA residents are not legally obligated but appointing one is recommended to ensure timely filing of Modelo 210 and avoid penalties for late or incorrect submissions.
Q: What is Modelo 210 and when must it be filed?
Modelo 210 is the Spanish non-resident income tax return. For rental income, since 2024 it is filed annually — within the first 20 days of January of the year following the income (Orden HAC/56/2024; this replaced the previous three-monthly filing). For imputed income on non-rented properties, it is filed annually by 31 December of the following year.
Related Legal Guides
Disclaimer: This information is provided for general guidance purposes only and does not constitute personalised tax or legal advice. Each case must be assessed individually according to the client’s specific circumstances. It is essential to consult a qualified specialist before taking any action or making any decision.
Mortgage holder in Spain? Your mortgage may contain abusive clauses (floor clause, IRPH, excessive expenses, early maturity). CostaLuz offers a free mortgage review to check if you are entitled to a refund.
Legal Notice: The content on this page is provided for general informational and educational purposes only. It does not constitute legal advice and should not be relied upon as such. No action should be taken based solely on this content without first seeking independent professional legal counsel. Each case requires individual assessment based on its specific circumstances. CostaLuz Lawyers accepts no liability for actions taken or not taken based on this content.
Thinking of Renting Out Your Spanish Property?
If you’re buying a property in Spain with plans to rent it out — whether for tourism, seasonal stays or long-term residential — understanding your tax obligations is only part of the picture. Before you sign the purchase deed, you also need to verify that the property is legally permitted to be rented in the first place.
CostaLuz Lawyers offers QuickLease, our Rental Compliance Pre-Purchase service: a full legal check across all four regulatory levels (community, municipality, regional and national) plus documentation management — so you know exactly what you’re buying into.
Book a free initial consultation →
We respond within 24 hours.
Related: Rent to Buy in Spain: Legal Guide for Foreign Buyers 2026 →
QuickLease Rental Compliance Pre-Purchase service: before you commit to buying a Spanish property you plan to rent, verify it is legally permitted across all four legal levels (community, municipality, region, registry). Learn more about QuickLease → · 1.000€ + IVA · Email us.
Reviewed by María Luisa de Castro, CEO at CostaLuz Lawyers — specialist in Spanish property & rental-income tax — Updated 2026
This is general information, not definitive legal advice — every case requires individual analysis.
Book a call about your rental income. Tell us what you let and where — we will confirm exactly what you must declare (Modelo 210), what you can deduct, and what to do if you are behind. No obligation, no vague answers.
Book a call about your rental income →
Prefer to write first? Send a message → — María replies within one business day.
Need to speak now? +34 919 499 342 (EN/ES, 24h). Office: +34 956 092 687. Costaluz Lawyers — María Luisa de Castro, ICA Cádiz nº 2745.
Related Spanish tax guides
- Non-resident landlords declare rental income via Modelo 210 — see the step-by-step guide: Impuesto sobre la Renta de No Residentes en España — Guía Completa 2026.
- Renting through a Spanish company? See how corporate tax applies: Company Taxes in Spain (2025).
- Receiving a foreign pension alongside rental income? See how pensions are taxed in Spain: Paying income tax on foreign pensions in Spain – don’t get caught out!.
These rates and deductions are exactly what should feed into a genuine yield calculation — see our guide to calculating your actual rental yield after tax.
I am a Canadian citizen and quite interested in purchasing property in benedorm for th purpose of renting out the property for income purposes. Probably air BandB or some other platform. I have a friend who has been doing this for a while and he has been living there for the past few months and has gained an EU passport. I do not wish to live there but merely visit for a month or two. Just wondering what the tax implications of ownership are for Spain and any other problems that may arise.
Subject: Investment and Tax Implications for Property Purchase in Benidorm
Dear Dereck,
Thank you for expressing your interest in investing in properties in Benidorm for rental purposes. Your investment approach offers a unique opportunity, and I’d like to provide a comprehensive response to guide you effectively.
Property Purchase and Rental Tax Implications:
Purchase Taxes and Costs:
Transfer Tax (ITP) is applied when purchasing a second-hand property, ranging from 8% to 10% based on the property’s value in the Valencian Community.
Additional costs such as Stamp Duty, Notary, and Registry Fees may sum up to an extra 1% to 2% of the purchase price.
Rental Income Tax: As a non-resident, income generated from rentals is subject to Spanish income tax. For non-EU/EEA citizens, the tax rate on gross rental income is currently 24%.
Annual Property Taxes: The Local Property Tax (IBI) is a municipal tax based on the property’s cadastral value.
Using Rental Platforms: If you’re considering platforms like Airbnb, it’s essential to be aware of local regulations.
Property Management: With your primary residence being abroad, consider having a local property manager.
Strategic Consideration for Multiple Properties:
If you’re planning on acquiring multiple properties, establishing a Sociedad Limitada (SL) – a limited liability company in Spain – could offer strategic benefits:
Tax Benefits: SLs are subject to corporate tax which can be lower than personal income tax rates. Operating expenses can be deducted from gross rental income. If the company has, at least, eight properties rented with rental contracts for periods longer than three years, this is met by asset-holding companies which can benefit from a deduction of up to 85% of the income obtained through rent. Additionally, in their case, they could deduct the Property Tax or community fees in their entirety. An individual wouldn’t have these benefits.
Asset Protection: Operating under an SL can offer protection against liabilities related to the company’s operations.
Management Benefits: Consolidating properties under an SL can simplify rental management and accounting.
Succession Planning: An SL structure can ease property transfer and inheritance processes.
While there are numerous advantages to setting up an SL, there are also ongoing administrative obligations to consider.
Given the detailed nature of this venture, I’d recommend further discussion to align strategies with your specific investment objectives. Our team, specializing in real estate and tax laws, is here to provide in-depth guidance tailored to your needs.
Please let me know if there are additional details or questions you’d like to discuss. We look forward to assisting you in your investment journey in Spain.
Warm regards,
Maria L. de Castro
General Director
CostaLuz Lawyers
If you have multiple rental properties and are a non EU citizen, the rate is 24% of the gross rental. Can I deduct expenses? If I am married to a EU citizen, would this help in anyway?
Dear Gordon:
In answer to your questions:
Non-EU/EEA Citizens: Non-resident landlords who are not citizens of the European Union, Iceland, or Norway must pay a flat 24% tax on the gross rental income. This means you cannot deduct any expenses related to the property (like maintenance, interest on mortgages, etc.).
EU/EEA Citizens: Non-resident landlords who are citizens of the European Union, Iceland, or Norway get a more favorable tax treatment. They’re taxed at 19% on their net rental income, meaning they can deduct property-related expenses.
Marriage to an EU Citizen: Being married to an EU citizen might not directly change your tax status. It is usually based on your personal citizenship and residency status, not that of your spouse. However, the way properties are owned (e.g., jointly owned, owned by the EU citizen spouse, etc.) might influence the taxation, so it’s essential to consider how properties are titled and seek advice tailored to your specific situation.
Deductions: If you were an EU/EEA citizen, you would be able to deduct expenses like interest on your mortgage, local taxes, costs of repairs and maintenance, property management fees, utility bills (if paid by the landlord), and insurance. However, as mentioned above, non-EU/EEA citizens are typically not allowed these deductions.
In Spain, there’s a special tax regime for entities that are primarily dedicated to renting out properties. Such entities can benefit from an 85% reduction in the Corporate Income Tax base if they meet specific requirements.
To qualify for this regime, certain conditions must be met, some of which are:
Corporate Purpose: The primary corporate purpose should be the rental of properties. The entity must have a minimum of 8 rented properties or a property with at least 8 units.
Duration: The properties should be rented out for a minimum of 7 years, and the entity should maintain this structure and purpose for that period.
Limit on other revenues: The entity’s income from other activities (other than renting) should not exceed 20% of its total revenues.
Tenancy: A single person, whether physical or legal, shouldn’t occupy more than 50% of the total rented properties or units during more than half of the tax year.
Financing limitations: There might be specific requirements regarding the entity’s debt and equity structure.
Management: The entity may have a separate department or dedicated staff for property management, ensuring the properties are properly rented out and maintained.
It’s essential to consult with a tax professional familiar with Spanish tax law to get detailed information tailored to your situation, ensure you meet all the requirements, and benefit from the tax reduction.
This regime aims to promote housing rentals by providing tax incentives to dedicated rental companies, making it more attractive for entities to engage in property rental activities.
In summary, while being married to an EU citizen might offer various benefits, it might not directly impact the taxation of rental income for non-EU citizens. However, how properties are owned and structured could potentially offer some advantages.
Best regards
Maria
If I am a permanent resident in Spain and the only annual rental income I have is less than 22.000 euro, do I have to file this income tax? Thank you.
Dear Mark:
Thanks for your query on our blog. I am sending guidelines to you below:
Personal Income Tax (IRPF): Spanish tax residents are liable to pay income tax on their worldwide income. If you are a tax resident in Spain and earn rental income, even if it’s from a property located outside Spain, you would generally be required to declare that income.
Income Thresholds: The figure of €22,000 you mentioned is a general threshold related to earned income (like salaries) below which taxpayers might not need to file a return. But this threshold might not necessarily apply to rental income. In Spain, rental income has its own set of rules and deductions, and even small amounts of income may need to be declared.
Tax Deductions: Spain does allow for certain costs to be deducted from rental income, such as interest on mortgages, local taxes, insurance, repairs, and depreciation. After considering these deductions, the net rental income could be lower, and there might be specific exemptions or reduced tax rates applicable.
Non-residents: Even if you were not a tax resident, Spain taxes non-residents on income derived from Spanish property. The rules for non-residents are different than those for residents.
In conclusion, while there are thresholds and allowances that might exempt some people from having to file a tax return, rental income often has its own specific set of rules. Therefore, if you have rental income as a resident of Spain, it’s a good idea to consult with a tax professional to determine your tax obligations. We have a tax advisor among members of our team: we will be very pleased to offer our services to you.
Best wishes
Maria
Hi Maria,
What is the tax for non-residents of EU but with Spanish citizenship? For example a Spanish citizen that emigrate to US and pays taxes in the US.
Dear Carlos:
As a Spanish citizen who is a non-resident in Spain and resides in a non-EU country like the United States, you are subject to the tax rules applicable to non-EU residents.
Here are the key aspects to keep in mind:
Taxation Based on Residency: Spanish tax obligations for rental income are determined based on your residency status, not your citizenship. Being a resident of a non-EU country, you are treated as a non-resident for tax purposes in Spain.
Non-EU Resident Tax Rules: Non-residents from non-EU countries are typically subject to specific rules which differ from those applied to residents or EU/EEA residents. This includes a different tax rate on rental income and different rules regarding deductions and allowances.
Higher Tax Rate and No Deductions: As a non-resident from a non-EU country, you might face a higher tax rate on your rental income from Spanish properties. As of the latest information available to me, this rate was around 24%. Additionally, you may not be entitled to certain deductions that are available to residents or EU/EEA non-residents.
Best wishes,
Maria
Dear Maria, thanks for all your comments, they are very useful. I was trying to find any infortmation whether Switss tax resident with rental property in Alicante would still be falling under 24% tax rate on gross income or if Spain has any special agreement with Switzerland as many other countries do. Also what if the property jointly owned by Spanish resident and Swiss resident, how would tax on rental income be treated. Ever grateful for your answers. Best, Andrew
Dear Andrew:
For a Swiss tax resident with rental property in Alicante, the general tax rate is 24% on gross income according to Spanish regulations for non-residents. However, there’s a Double Taxation Agreement between Spain and Switzerland that also needs to be taken into the scene.
In the case of joint ownership between a Spanish and a Swiss resident, the income is divided according to each owner’s share, with tax rates applied based on their residency status.
Best wishes,
Maria
Hi,
In your article, you mention EEA citizens are eligible to 19% taxation on net profits (vs 24% on gross income for non-EEA citizens. Is this true even if EEA citizen is not EEA tax resident? I always assumed the rule is not based on citizenship, but tax residency.
In order to avoid the 24% tax on gross income, is it possible to invest via a Sociedad Civil or Comunidad de Bienes?
Thank you!
Hi,
You’re absolutely right, and I appreciate your attention to detail. The distinction for tax purposes indeed hinges on tax residency rather than citizenship. EEA citizens who are not tax residents within the EEA do not benefit from the 19% taxation on net profits; instead, they are subject to the 24% on gross income, similar to non-EEA citizens.
Regarding investing via a Sociedad Civil or Comunidad de Bienes to potentially mitigate the 24% tax on gross income, it’s true that there are specific fiscal deductions available for rental businesses. However, meeting the necessary requirements is crucial. For a detailed explanation of these fiscal benefits and the conditions that must be met, I recommend visiting this link: https://costaluzlawyers.es/blog/tax-benefits-for-property-rental-companies/.
Thank you for your query, and I hope this clarification helps!
Best wishes
María
Hello! Just wanted some clarification on expenses that can be used as deductible for taxes. What is the amount limit allowed to be placed as single cost? I mean, what is the amount limit, above which the sum has to be depreciated for a certain period?
Thank you!
Dear Giedre:
The taxation on rental income in Spain distinguishes between EU and non-EU residents, impacting both the applicable tax rates and the deductibility of related expenses. For EU residents, the system allows a progressive taxation framework, where the tax rate escalates based on the total income level. This group benefits from the ability to deduct a comprehensive range of expenses associated with the rental activity, such as mortgage interest, property maintenance, and depreciation, effectively lowering the taxable base of their rental income.
Non-EU residents, on the other hand, are subject to a flat tax rate on their rental income derived from Spanish properties. This rate applies to the gross income without allowances for most expense deductions that EU residents enjoy. This approach traditionally places a heavier tax burden on non-EU residents, as they can’t offset their income with the costs incurred in generating that income.
Hope the above helps. Please, let me know if you have additional questions
Best regards
Maria
Hello, I would like some clarification about IVA for holiday rental through Airbnb. I have a rental property and don’t live in Spain so I understand that I pay 24% tax on any income I earn from the rental. I also have a co-host for my property who receives a percentage for taking care of the check-in/check-out and cleaning services for the property. The co-host is now charging IVA on top of the agreed %. I have contacted Airbnb and they have said this wrong. Can you please advise.
Thanks
Dear Derek,
Thank you for contacting us.
Please be informed that if services specific to the hotel industry are provided, the rental of a tourist apartment will not be exempt from VAT and must be taxed at the reduced rate of 10% as a hotel establishment.
We can offer to study your case with your real situation, checking thoroughly the Spanish tax legislation and give you a proper answer. We will be pleased to offer you our tailored consultancy, which is a written reply or a tax legal report.
We remain at your disposal for any questions or comments.
Best regards,
Hello,
Could you please clarify which tax regime would apply on the rental income in a case of joint owners – one with the EEA tax residency, the other one without (UK tax resident), both EU citizens. Thank you!
Dear María:
In Spain, the tax regime on rental income for joint owners where one owner has EEA tax residency and the other has UK tax residency (post-Brexit) can be somewhat complex due to the differences in how Spain treats residents and non-residents from different regions. Here’s how it generally works:
Tax Residency and Rental Income in Spain
EEA Tax Resident:
Tax Treatment: Owners who are tax residents in the EEA (European Economic Area) are taxed more favorably than non-EEA residents.
Deductions: EEA residents can deduct expenses related to the property, such as maintenance, mortgage interest, and other costs that are directly linked to generating rental income.
Tax Rate: The applicable tax rate on net rental income (after allowable deductions) for EEA residents is 19%.
Non-EEA Tax Resident (Including UK Post-Brexit):
Tax Treatment: Since the UK is no longer part of the EEA, UK residents are treated as non-EEA residents.
Deductions: Non-EEA residents cannot deduct expenses related to the property. They are taxed on the gross rental income.
Tax Rate: The applicable tax rate on gross rental income for non-EEA residents is 24%.
Joint Ownership Scenario
In a case where the property is jointly owned by an EEA tax resident and a non-EEA tax resident, the rental income must be split according to each owner’s share. Each owner then reports their share of the rental income according to their respective tax residency status.
EEA Resident Owner:
Reports their share of the rental income.
Can deduct allowable expenses.
Pays a 19% tax rate on the net rental income.
Non-EEA Resident Owner (UK Resident):
Reports their share of the rental income.
Cannot deduct any expenses.
Pays a 24% tax rate on the gross rental income.
Example Calculation
Assume the property generates €10,000 in rental income annually, and the ownership is split 50-50.
EEA Resident Owner:
Rental income: €5,000.
Deductible expenses: €1,000.
Net income: €4,000.
Tax (19% of €4,000): €760.
Non-EEA Resident Owner (UK Resident):
Rental income: €5,000.
No deductions allowed.
Gross income: €5,000.
Tax (24% of €5,000): €1,200.
Reporting and Compliance
Both owners must ensure they file their respective tax returns accurately according to their residency status. This typically involves:
Filing Non-Resident Income Tax Returns (Modelo 210): For non-resident property owners in Spain.
Resident Tax Returns: For EEA residents, which may also involve additional reporting depending on their country of tax residency.
Resources and References
Agencia Tributaria (Spanish Tax Agency): Provides comprehensive information and guidelines on tax obligations for residents and non-residents. Agencia Tributaria – Rentas Inmobiliarias
Double Taxation Agreements: Information on how Spain’s tax treaties with other countries may affect the taxation of rental income.
We will be very pleased to assist you with this if necessary. We have the right professionals to help you with this.
Best regards,
Not sure if this matters, but I have dual citizenship with Ireland & USA and have a business in USA and plan renting a villa for two months in Mallorca, is there a way that I don’t have to pay VAT for this rental?
Hello,
As an individual renting a villa in Mallorca for personal use, you generally cannot avoid paying VAT (IVA) on the rental. VAT is typically included in the rental price and is a legal requirement for short-term rentals. For specific tax advice, consult with a tax professional familiar with Spanish regulations.
Hope the above helps! We will be pleased to assist you with your tax obligations in Spain
Best regards,
María
I’m looking to find out what qualifies EEA tax resident? I’m from the UK, looking at buying a rental property in spain. I also have an Irish passport does this make me a EEA tax resident?
If you hold an Irish passport, you are a citizen of an EU/EEA country. To qualify as an EEA tax resident in Spain, you typically need to spend more than 183 days in Spain within a calendar year or have your main economic interests in Spain. As an Irish citizen, you can reside and work in Spain under EU/EEA regulations, making it easier to qualify for EEA tax residency if you meet the necessary conditions.
Hello. I am a resident in Spain originally from the UK. I am interested in buying a holiday home for my parents to visit and stay in, the months they are not in it I would like to rent it out. I have heard short term let’s are subject to around 45% tax? Is this true and what is deemed to be short term? Less than 32 days for example?
Many thanks
In Spain, rentals are classified as residential use and non-residential use under the Law of Urban Leases (LAU). Vacation rentals are regulated by regional tourism laws, which require specific licenses. If you plan to rent out the property for short stays, you’ll need to comply with these regulations and the applicable taxes, which can vary depending on your situation and the region. We’re here to help if you have any further questions!
Hi Maria,
My husband and I are planning a move to Spain from Canada. soon and will become tax resident in Spain. We are planning on renting out our home in Canada.
We will declare our rental income in Spain as income. Can you confirm what expenses we will be allowed to deduct from the rental income we receive in Canada. What tax rate will we be taxed on for rental income?
Thank you.
Hello,
Thank you for reaching out.
As tax residents in Spain, you will need to declare your rental income from Canada. You can typically deduct expenses such as mortgage interest, property taxes, repairs, property management fees, utilities, insurance, and depreciation.
Rental income will be taxed at Spain’s progressive tax rates:
Up to €12,450: 19%
€12,451 – €20,200: 24%
€20,201 – €35,200: 30%
€35,201 – €60,000: 37%
Over €60,000: 45%
The double taxation treaty between Spain and Canada ensures you won’t be taxed twice on the same income.
For detailed advice, consider a consultation with us.
Best regards,
Maria de Castro
Hello!
Thank you for the article!
I have question about the deductible expenses: ”Costs associated with the purchase of the property, for example, transfer tax and legal fees.” Does it include real estate agent fees as well? Especially, if the fees were obligatory for purchase of the property.
Deductible expenses in a property purchase can include taxes like transfer tax or VAT, notary and registration fees, attorney fees, real estate agent commissions, and financing costs such as mortgage interest. Deductibility depends on the property’s use and current tax regulations. We’re here to help with any further questions!
Hello,
What are Spanish tax implications for renting a house in USA while an expat from USA living in Spain as a fiscal resident? Are deductions against rental income allowed for Spanish tax purposes, such as mortgage interest, property management, maintenance and depreciation? Does it make any difference if the USA expat is also an EU national? Thank you!
As a U.S. expat living in Spain, if you rent out a property in the USA, you’re subject to Spanish tax on worldwide income, including U.S. rental income. Spain allows deductions for mortgage interest, property management fees, maintenance, and depreciation related to the rental activity. Under the Spain-USA Double Taxation Agreement, you can offset taxes paid in the USA against your Spanish tax liability to avoid double taxation. Being an EU national does not affect the tax treatment of U.S. rental income. It’s important to also consider any local U.S. tax obligations and the potential need to file Form 720 in Spain if you own significant assets abroad. Consulting with a tax professional is recommended to navigate these regulations effectively.
Hi,
You mention that for non-EU/EEA tax residents that expenses and other costs are ‘mostly not tax deductible’
Are there any situations where they are? For example, if a property management company looks after the property and you receive 80EUR per night (as they have rented it at 100EUR and then taken a 20EUR management fee), is the tax on the 100EUR or the 80EUR?
Either way, are there any scenarios where there are deductible expenses if non-EU/EEA tax resident?
Thanks
D
Thank you for your question. When it comes to non-EU/EEA tax residents, the general rule is that expenses and other costs associated with rental income are not tax deductible. This means that non-residents are typically taxed on their gross rental income rather than on their net income after expenses.
In the scenario you described:
If you’re a non-EU/EEA tax resident and your property management company rents out your property at €100 per night and takes a €20 management fee, you would generally be taxed on the €100 rather than the €80 you receive after their fee. The management fee would not be deductible as an expense for tax purposes.
Are there any exceptions?
While the standard rule is that non-EU/EEA tax residents cannot deduct expenses, there are a few exceptions and specific circumstances where some costs might be considered:
Local Tax Treaties: If Spain has a tax treaty with your country of residence, it may offer some relief or specific provisions regarding the taxation of rental income. It’s worth checking the details of any applicable tax treaty.
Different Treatment of Certain Incomes: In some rare cases, if a specific type of rental arrangement or income qualifies differently under Spanish tax law, there may be different rules applicable. However, this is generally not the case for standard rental income.
Tax Credits in Your Home Country: While this doesn’t change your tax liability in Spain, you might be able to claim a credit or deduction in your home country for the taxes paid in Spain. This doesn’t reduce the Spanish tax but can help offset your overall tax burden.
In summary, for non-EU/EEA residents, Spain typically taxes the gross rental income without allowing deductions for related expenses. If you find yourself in this situation, consulting with a tax advisor who specializes in international taxation and the specifics of Spain’s tax treaties could provide you with more personalized advice.
Feel free to ask if you have more questions!
Best regards,
Thank you for your informative article and for answering everyone’s questions.
We would like to rent out our holiday home in Mallorca, I understand the rental income will be taxed at 24% as a non EU citizen. However, would you clarify what is a short term versus long term lease ? Is 11 months considered long term, with the option of the tenant to renew the contract? Would we be applicable for the 60% reduction in taxes if we chose to rent long term?
Thank you so much for your help.
Gemma
Hi Gemma, thanks for your question! An 11-month lease is typically seen as short-term unless clearly intended as the tenant’s main residence. Also, the 60% tax reduction only applies to Spanish tax residents renting long-term as a habitual residence.
Hi,
We are looking to buy a property in Tarragonna area, initially we would like to rent it, then eventually move to live there. I’m an EU citizen living in the UK (German duel nationality) so what tax would I be subject to? also does the tax differ if we rent for holiday rentals or longer term lease?
As an EU citizen buying in Spain, if you are non-resident you will pay Non-Resident Income Tax (IRNR) on rental income. The rate is 19% on net profit (after allowable expenses) if you are EU resident.
For long-term rentals, you declare the net rental income.
For holiday rentals, the same tax applies, but you must also register the property for tourist use and comply with local rules.
If you become resident in Spain, rental income is taxed under the Spanish personal income tax (IRPF) instead.
Hello. I am a U.S. Citizen but a tax resident for 3 years now in Barcelona. Planning to buy a property to rent out, how would that affect my personal income from work ( official employment, contract in Spain). What to watch out for.
Thank you
Dear Maria,
we are tax residents and married, and are planning to jointly buy a property in Spain and not rent it out, but use it ourselves and have children / relatives use it when we are not there.
As we have to nevertheless pay the imputed income tax IRNR even though we do not have rental
income, will we still be able to deduct ibi, community fees etc. from the IRNR based on the imputed income, or can one only do deductions if one has real, not imputed rental income?
Kind regards,
Juan
No—you can’t deduct IBI, community fees, insurance, etc. from Spain’s imputed income (whether IRNR or IRPF). The imputation is a fixed % of the cadastral value (1.1% or 2% if not recently updated), taxed at 19% (EU/EEA) or 24% (others).
Deductions only apply when there’s actual rental income.
If you’re buying, we can handle the full conveyance and send a fixed-fee quote.
Dear Maria,
I would like to clarify, if I am a Non-EEA tax residents renting a property in Spain, and the rental I receive is 600EUR +VAT (total 720 EUR/month), do I pay the 24% tax based on the 600EUR rent or the 24 % on the 720EUR I actually receive from the tenant?
Thank you in advance for your help!
Lara,
IRNR on Rent with VAT: Quick Take
If you’re a non-EEA non-resident renting property in Spain, the 24% IRNR is applied to the rent excluding VAT.
VAT is not income—you collect it from the tenant and pay it to the tax authority.
Note: long-term residential leases are usually VAT-exempt. Commercial leases generally carry 21% VAT; some tourist stays may be 10%.
Example
Rent €600 + 21% VAT = €726 invoiced.
IRNR: 24% of €600 = €144.
Side note: EU/EEA residents are typically taxed at 19% (often with allowable deductions). Filing form: Modelo 210.
Dear Maria,
I would like to clarify, if I am a Non-EEA tax residents renting a property in Spain, and the rental I receive is 600EUR +VAT (total 720 EUR/month), do I pay the 24% tax based on the 600EUR rent or the 24 % on the 720EUR I actually receive from the tenant?
Thank you in advance for your help!
Lara,
Short answer: you pay 24% on €600, not on €720. The €120 VAT is passed to the tax office and isn’t taxable income. Note: most residential leases are VAT-exempt; charging VAT usually means tourist or commercial use. File via Modelo 210 (quarterly); as a non-EEA landlord, no expense deductions.
Hi Lara,
Short version: IRNR is 24% on €600, not on €720. The €120 VAT isn’t taxable income—it’s passed to the tax office.
Note: Most residential long-term rentals are VAT-exempt; VAT usually applies to tourist/serviced or commercial lets.
Declare the rent (excluding VAT) via Modelo 210—often quarterly.
Good afternoon, I am a Russian citizen residing in Spain and renting out my apartments in Russia. As a non-resident in Russia, I pay income tax of 30% on this income. Do I have to pay taxes on this income in Spain? If so, what kind?
Short answer (for blog):
If you’re tax‐resident in Spain: Yes. Spain taxes worldwide income, so your Russian rental income is included in your Spanish IRPF return (Modelo 100). You can usually deduct ordinary rental expenses to compute the net amount and then apply a foreign tax credit for Russian tax paid (subject to limits). The Spain–Russia treaty/relief framework has been in flux, so the exact credit mechanism should be checked for the year you file.
Watch-outs: exchange-rate conversion to EUR, proof of Russian tax paid, and—if you exceed thresholds—informative filings on foreign assets (e.g., Modelo 720) and potential Wealth Tax (Modelo 714).
If you’re not tax‐resident in Spain: Spain only taxes Spanish-source income. Russian rents would not be taxable in Spain.
This is general information, not advice. For your specific case (residency status, deductions, and foreign tax credit limits), get a written review before filing.
Dear Maria,
We have a puzzle here. We are retirees over 70 from Slovak Republic (EU member state) and want to relocate to Spain by buying property in Playa Honda or La Manga regions as for living there based on our Slovak state pension. Our idea is that my mate would buy a 2 BR apartment and she would rent out for me one room for me in order to obtain El Padrone myself, as well. The lease agreement then would be set at 0,00€/monthly charge (so she would not have to pay income tax), but on the other hand I would contribute to the monthly running costs, maintenance fee, renewal costs, upgrade, etc. what will be included in the rental agreement.
So, we would like to know, if this procedure is feasible and hear your comments. Thank you, Maria.
Yes, as EU citizens you can relocate to Spain as retirees, but we do not recommend using a “€0 rent” contract to obtain padrón—it can raise questions and create tax/administrative issues.
The usual, safest route is:
Padrón: register at the address with the property deed (owner) and/or a normal rental contract, or in some town halls an owner authorisation plus the deed/ID.
EU Registration (Green Certificate): each of you applies with health cover (S1 or suitable private insurance) and proof of sufficient means (pension/savings).
If one person buys the property, keep the arrangement transparent and consistent with reality (avoid “€0 rent” if there is regular payment in practice).