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RENTAL TAX SPAIN
I AM RENTING OUT MY FLAT IN SPAIN. HOW WILL I BE TAXED AS A NON-RESIDENT?
When you are not a tax resident in Spain, you are taxed through the Impuesto sobre la Renta de No Residentes (IRNR) – the Spanish Non-Resident Income Tax.
Below you will find a clear and structured explanation. You rent out your apartment – what is taxed? As a non-resident, you are taxed on the rental income you generate in Spain.
Step 1: Gross rental income This includes all rental income actually received. Can you deduct expenses? That depends on your tax residence. If you are a resident of an EU or EEA country (for example Belgium or the Netherlands) You may deduct expenses directly related to the rental, such as: Real estate agency commission Platform fees (e.g. Booking) Cleaning Maintenance and repairs Community charges IBI (Property Tax) Insurance Loan interest Depreciation of the building You are then taxed on the net result. Tax rate: 19% If you are a resident of a country outside the EU/EEA You may not deduct any expenses. You are taxed on the full gross rental amount. Tax rate: 24% What if the apartment is temporarily vacant? As a non-resident, you must also pay tax for periods when the apartment is not rented out. This is called imputed property income. Calculation: 1.1% or 2% of the cadastral value, depending on revision Pro rata for the vacancy period Taxed at 19% (EU) or 24% (non-EU) In other words: even without rental income, you must pay tax. How and when must you pay? The tax return is filed using Form Modelo 210. Quarterly for actual rental income. Annually for the imputed income during vacancy. Payment must be made within the legal deadline. Important to know Spain always taxes real estate located on its territory, regardless of where you live. In your country of residence, you will generally need to declare the Spanish income, but double taxation is avoided through a double taxation treaty. There is no exemption similar to that available to Spanish residents for long-term rentals (no 60% reduction). Summary As a non-resident: EU resident: 19% tax on net rental income Non-EU resident: 24% tax on gross rental income In case of vacancy, tax is due on imputed income Declaration via Modelo 210 If desired, I can prepare a concrete simulation based on your rental price and cost structure so you know exactly what your net result will be.
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