Taxes when renting out a (holiday) home in Spain

Many people buy a (holiday) home in Spain that they want to rent out. Spain remains a very popular holiday destination and the return on rental income on a Spanish holiday home remains high. In this way you generate extra income in addition to your regular salary and you can, for example, lay down a nest egg for your pension. But what about the tax on the rental in Spain?

Tax rental in Spain: our experts will help you on your way

Rayos de Sol works with experts who take everything off your hands, so that you can start your experience in the Spanish property market with peace of mind. But it is an excellent idea to inform yourself well in advance about what taxes renting in Spain entails. If not, you may be faced with unpleasant surprises and we all want to avoid that as much as possible.

Different tax rates

How much, you wonder now? A distinction is made here between residents in Spain and non-residents. For residents, a system with different brackets applies depending on their income. You will be taxed at 19% on income from 0 to 6,000 euros. From 6,001 to 50,000 euros, a rate of 21% applies, while everything between 50,001 and 200,000 euros is taxed at 23%. For income from 200,000 euros or more, a rate of 26% is applied.

Two rates apply to non-residents. Landlords from within the European Union pay 19% tax on their rental income. For non-residents from outside the European Union, this is increased to 24% and costs can not be deducted. Check carefully which bracket you fall into to have a good idea of what your Spanish home will bring you in rental income after tax.

Short or long term letting?

Now that you know you don't have to worry about the tax on renting out your property in Spain, you can focus more on other questions you will need to answer. It is important, for example, to determine whether you will opt for short-term or long-term rental. Both options bring a nice return, but are still very different. Short-term rentals can yield more, but require more day-to-day organization. Long-term rental allows you to build a relationship with your tenant and provides certainty about rental income over a longer period. Let Rayos de Sol assist you and enjoy your Spanish real estate adventure from day one.

Do you not have a home yet and are you looking for a home to rent out in Spain? Then you can see our actual possibilities through this link.