If you are NON-RESIDENT in Spain and you let your property in the country, then you have to pay income tax on the rent instead of the imputed tax described for the properties no rented.
You must present a quarterly declaration at the end of each quarter (April, July, October and January of the following year). In the quarterly declaration you must declare the PROFIT earned in each quarter.
If the equity of the quarter is NEGATIVE, you do not have to present the quarterly form, instead, in January of the following year you have to present an annual form including all the negative quarters.
If you let some quarters but the other part of the time the house is NON LET, you must present:
- The quarterly form for the quarters let and, separately,
- The annual form of the periods non let (so the MINIMUM tax is calculated proportionally)
Deductions: The deductible expenses include, but are not limited to, electricity, water, gas, advertising fees, home maintenance and repair expenses.
What is the tax base when a non-resident has a leased property in Spain?
In general, the taxable base will be the amount received by the lessor for all items, including, where applicable, the amount corresponding to all the assets transferred with the property and excluding Value Added Tax. No deduction whatsoever may be made from the total income thus obtained.
However, in the case of taxpayers resident in another Member State of the European Union, in relation to income obtained as from 1 January 2010, and those resident in Iceland and Norway in relation to income obtained as from 1 January 2015, they may deduct expenses for the determination of the gross tax base, provided that it is accredited that they are directly related to the income.
Due to BREXIT, the tax liability for the owners who are residing in UK has been changed:
- The rentals generated form 01/01/2021 are taxed 24% upon the gross income.
- They cannot deduct expenses on the rental income.
The tax on rental income for residents in EU, Iceland and Norway is the 19% and they can deduct expenses.
The rental income tax is the 24% for the owners of the rest of the countries.