Investing in a vacation home in Spain is a profitable decision, especially if you plan to rent it out during the months when you are not using it. Many foreign owners purchase properties with the intention of moving in the future, but in the meantime, they rent them out to earn income. However, this practice entails tax obligations that should not be overlooked.

The obligation to report all information related to vacation rentals of real estate to the Spanish Tax Agency, carried out by large booking portals, also has an impact on much better control of taxpayers by the State Administration.

With good tax advice for rentals in Spain, it is possible to comply with all regulations and avoid penalties, while benefiting from efficient and transparent tax management.

Taxes affecting non-resident owners of real estate in Spain

One of the best-known taxes for property owners is the IBI (property tax). This municipal tax is paid once a year and depends on the cadastral value of the property. All owners must pay it, regardless of the type of property.

But in addition to the IBI, non-resident owners are required to pay Non-Resident Income Tax, which varies depending on the use of the property:

  • Imputed income: if the property is not rented out and is used only by the owner.
  • Rental income: if the property is rented out, either to tourists or on a long-term basis.

Tax advice for rentals in Spain will help you manage both situations. In the first case, the tax return is filed annually before December 31 of the following year. In the second case, taxes are filed quarterly (April, July, October, and January), and it is possible to deduct certain expenses related to the rental.

What happens if you only rent out your property for part of the year?

When a property is only rented out during certain periods, two types of tax returns must be filed:

  • Quarterly, for the income generated during the months when the property is rented out.
  • Annual, for the owner’s own use of the property during the remaining months (imputed income).

Tax advice for rentals in Spain allows for clear management of both situations, ensuring that the owner correctly complies with their tax obligations at all times of the year.

Gestoría Ramón Santafé, tax advisory services for rentals in Spain

At Gestoría Ramón Santafé, we are experts in tax advice for rentals in Spain. We help non-resident owners to comply with their tax obligations safely, quickly, and efficiently. Our services include:

  • Registration and updating of data with the Tax Agency
  • Settlement of taxes on tourist rental income
  • Filing of quarterly and annual tax returns
  • Payment of taxes on behalf of the client

Important: if the property is owned by several owners (for example, a couple), each person must file their own separate return and pay their proportional share of the tax.