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SpanishTax from renting out your holiday home

SpanishTax from renting out your holiday home

Postby kjellv » Tue Feb 27, 2018 3:47 pm

hi

I'm planning to enter a contract to rent out my property when I'm not here and I want to make this the correct way as for the Spanish authorities.

Can anybody tell me what I have to pay in tax based on an estimated income from this of 9000 EUR a year.

Thanks
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Re: SpanishTax from renting out your holiday home

Postby marcliff » Tue Feb 27, 2018 4:12 pm

The first thing is are you a Spanish or UK resident? If UK, then the UK tax people want you to declare your rental income there and will tax you on it. You would then have to declare it in Spain but any tax taken by the UK will be offset against your liability and you complete a Modelo 210 every time it is rented or you can lump them together and declare them quarterly.
If it's a jointly owned home then each owner must submit the declaration and a percentage is applied.
You can take off community fees, council taxes and other expenses and you pay 24.75% tax on the balance.
Therefore, without knowing your fees, it would be impossible to say how much tax you would pay on €9000.
Don't forget that if you are renting the property out for short periods you have to get a tourist licence.
The ins and outs of it all are explained onthis link.
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Re: SpanishTax from renting out your holiday home

Postby kjellv » Tue Feb 27, 2018 5:00 pm

hi and thanks

I'm not UK and not EU and not Spanish, but you have answered most of my questions. On other thing, you say community fees, council taxes and other expenses, what is other expenses, is this such as pool/garden maintenance, water and electricity bills, fee for doing the declarations and possible renewal of i.e. garden furniture etc. as they breake down.

Anyhow, thanks for you quick answer.
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Re: SpanishTax from renting out your holiday home

Postby marcliff » Tue Feb 27, 2018 5:13 pm

Ah, well. According to one solicitor, landlords resident outside the EU (or EEA) can't claim tax relief on expenses.
As in this bit:


I) Landlords resident in E.U. or E.E.A.

Tax relief: Yes, physical persons may deduct, for example, home insurance, mortgage loan interest payments, property maintenance expenses etc. Legal persons may also deduct rental related expenses.
Dates: collected annually or quarterly.
Tax form: 210.
Tax rate: 19% on rental income for 2016.
II) Landlords resident outside the E.U. or E.E.A.

Tax relief: no.
Dates: collected annually or quarterly.
Tax form: 210.
Tax rate: 24% on rental income for 2016.


I would therefore think you would be liable to 24% tax on the entire rental income but contact a gestor/solicitor for advice first. The 24.75% tax for non residents in my first post was before the EU said you can't discriminate between resident and non resident EU citizens and has since been reduced to 19%, the same as a Spanish resident.
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Re: SpanishTax from renting out your holiday home

Postby kjellv » Tue Feb 27, 2018 5:24 pm

hi thanks again

That's the problem with us outside EU and you will soon be leaving as well and will then come under the same regulations or worse !!!!

I will check with somebody, but to me it seems that what you say are very close to the truth, no deduction on our expenses.

Have a nice day
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Re: SpanishTax from renting out your holiday home

Postby jpeg » Tue Feb 27, 2018 7:11 pm

Dont forget you will need an Energy Performance Certificate for the property or you will be looking at a very big fine if you rent without it .
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Re: SpanishTax from renting out your holiday home

Postby The Rower » Wed Feb 28, 2018 8:30 am

I am not sure from your post if you stay at your property any of the time? If you do stay in it,from my conversations with our Aborgado, I do not believe you will be able to claim maintenance, etc for the period you live in it.

We are in the process of paying for our apartment income and received this from my aborgado, which may be of interest
“Just to inform you that the tax is 19% of the profit for a rental.
For the payments we will present the tax form in your behalf with bank standing order, so the tax office will charge directly in your bank account the tax to pay.
The periods to make the rental tax are as following:
From 2nd to 10th of January (for October, November and December previous year)
From 1st to 10th of April (for January, February and March)
From 1st to 10th of July (for April, May and June)
From 1st to 10th of October (for July, August and September)

The charge by the Spanish Tax Office will be by the 20th of January, April, July and October.”
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Re: SpanishTax from renting out your holiday home

Postby kjellv » Wed Feb 28, 2018 8:48 am

hi

No I stay between 5 and 6 month so I will try to get 1/2 of the maintenance on the declaration.

Anybody know ehere to get:Energy Performance Certificate?

My house is less than 4 years will it still be valid this Energy Performance Certificate?

Again thansk to all
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Re: SpanishTax from renting out your holiday home

Postby TonTri » Wed Feb 28, 2018 9:01 am

kjellv wrote:hi

No I stay between 5 and 6 month so I will try to get 1/2 of the maintenance on the declaration.

Anybody know ehere to get:Energy Performance Certificate?

My house is less than 4 years will it still be valid this Energy Performance Certificate?

Again thansk to all


We had ours in the documents when we bought the apartment along with the deeds and Habitation Certificate.
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Re: SpanishTax from renting out your holiday home

Postby kjellv » Wed Feb 28, 2018 9:38 am

:text-thankyouyellow:
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