TAXES IN SPAIN – HOW TO DECLARE RENTAL INCOMES IN SPAIN AS NON-RESIDENT
In case you have, as a natural person non-resident for taxes in Spain, a real estate in this country and you are obtaining rental incomes you´ll have to declare it in the Income Tax for non residents (“Impuesto sobre la Renta de no Residentes” – IRNR) in Spain, every quarter through the form 210.
How much should I pay for these incomes?
There are two cases:
- If you are tax resident in another country of the European Union or in Iceland or Norway, you can pay only the 19% of your rental income, deducting all the expenses in relation with the rental.
- Otherwise, e.g. if you are tax resident in other countries you´ll have to pay the 24% of the total income, without deducting any expense.
When should I declare the rental income?
You have to declare it every quarter through the form 210, before the 20th of the month after the quarter ends (20th January, 20th April, 20th July, 20th October. You can make a direct debit into your bank account if you submit the declaration before the 15th.
What do I need to prove that I am tax resident in the EU, Iceland or Norway?
You should obtain from your national tax office a certificate according you are tax resident in that country. We recommend to attach this certificate to the form 210 when submitted to the Spanish tax office.
Which expenses can I deduct from my rental incomes?
In case you can deduct expenses, you can include all the expenses in relation with your rental incomes:
- Real property taxes (mainly the Impuesto sobre Bienes Inmuebles, IBI)
- Interests in case you have a mortgage for the purchase of the rental estate. Take into account that you can only deduct the expenses, but not the repayment of the principal of the loan.
- Community expenses (“gastos de comunidad”)
- Repair and maintenance costs (painting, cleaning, laundry, etc.)
- Home insurance.
- Other legal expenses.
- Depreciation of the real estate
How much can I deduct as depreciation?
You can deduct yearly the highest of these amounts:
3% of the cost of the real estate.
3% of the official cadastral value.
In both cases this 3% should be calculated only on the value of the construction, deducting the value of the land. You can find the calculations of the total value, the value of the construction and the value of the land in the cadastral value shown in the IBI payment.
Can I deduct the Income Tax payment for non-residents in the Income Tax of my country?
As a general rule, when preparing your personal Income Tax you should include your rental incomes in Spain and you can deduct the IRNR payment done in Spain. You should check with your tax advisor in your country if according to your national laws and the Agreement to avoid double taxation between Spain and your country you can deduct totally or partially the taxes paid in Spain.
If you need more information about this tax you can contact us at jose@asesoriagarcialopez.es or marta@asesoriagarcialopez.es