Paying income tax on rented property

Taxes Monday, October 29, 2012
Paying income tax on rented property

Many people rent out Spanish property. Sometimes these are short term, holiday lets in Spain in other cases they are long term lets. It can be a good option for those who have payments to make on their property or for those who bought the property as an investment. However, renting out your property does come with obligations. One of those is paying tax on your rental income.

When a property is rented out by a non-resident they should declare the rental income in Spain every quarter.

  • 1st Quarter: January-February-March - Tax payable before 20th April
  • 2nd Quarter: April-May-June – Tax payable before 20th July
  • 3rd Quarter: July-August-September – Tax payable before 20th October
  • 4th Quarter: October-November-December – Tax payable before 20th January

The rate for the tax is set at 24.75% of the gross rental income. There are allowances made for some expenses and these will reduce the amount on which tax is payable. You should check with your fiscal representative what can and cannot  be claimed against.

If you only rent out your property for short periods of time an adjustment will be made to the total imputed income tax you pay across the year. In other words, you won’t be taxed for both. For residents renting a second property the income is declared in their annual Income Tax declaration.

Do you have any questions?

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