Where taxpayers get caught out
Since platforms report owners' income, undeclared holiday rentals are easy for the tax agency to detect. Assessments then cover several years, with interest and penalties.
Rates and deductions
| Residence of the owner | Rate | Base |
|---|---|---|
| EU member state, Iceland, Norway | 19% | Income minus deductible expenses |
| United Kingdom, US, Switzerland and others | 24% | Gross income, no expenses |
Deductible expenses (EU/EEA residents)
- IBI and waste collection tax, proportionally to rented days.
- Community fees, insurance and utilities paid by the owner.
- Repairs and maintenance, agency and management fees, advertising.
- Mortgage interest on the purchase.
- Depreciation: 3% a year of the construction value (not the land).
Quarterly filing
Each quarter in which you receive rent you file a modelo 210 within the first 20 days of the next month: April, July, October and January. Each owner files for their share. See the modelo 210.
Holiday rentals in the Balearics
Holiday lets also involve the Balearic tourist tax and require a valid licence. See holiday rental tax and the tourist tax.
In your home country
Most treaties allow Spain to tax rent from Spanish property; your country of residence then taxes it too but gives a credit for the Spanish tax. Keeping the Spanish returns and receipts is essential. For the days without rent, see imputed income.
An illustrative example
Based on situations we commonly see; not a specific client. A Belgian owner let her flat in Ibiza for 90 days, earning 18,000 euros. With deductible expenses and depreciation of 7,400 euros for the rented days, she paid 19% on 10,600 euros instead of on the gross income, and imputed income for the remaining days.
How Castell.tax can help
We file the Spanish taxes of non-resident owners every year: imputed income, quarterly rental returns, the tax on a sale and the refund of the 3% retention. We work in English and German, by email and video call, so you never need to travel to Spain. We also check past years and correct them before the tax agency writes to you. See our non-resident tax service or contact us for a fixed-fee quote.
This page is published by Castell.tax, the tax practice of Castell.law in Palma de Mallorca. It is general information; tax rules and rates change, so check your case with us before filing.
Not sure what you owe? Ask before the deadline
Send us your situation or the letter you received. A tax adviser will tell you what applies, what it could cost and what to file.
Frequently asked questions
Can UK owners deduct expenses?
No. Since Brexit, UK residents pay 24% on gross rental income.
Is there a quarterly minimum?
No, every quarter with rental income requires a return.
Do I pay tax on long-term rentals too?
Yes, all rental income is taxable, long or short term.
What if the rent is paid abroad?
It is still Spanish income because the property is in Spain.