How do I rent out my property in Spain?

Owners who rent their houses in Spain are required to declare rental income through Form 100 (Spanish Tax Return – IRPF) or Form 210 (Non-Residents tax) depending on if the owner is a tax resident or not in Spain. Form 100 is submitted once a year between April 1st to June 30th, whether you are a Spanish tax resident.

Do I need a Licence to rent out my property in Spain?

“When you rent out your property short term it is now compulsory to register your property at the Tourist office, this is called a Tourism licence. We can advise the cost of this. Then there is a new requirement that is called Certificate of Compatibility with tourist uses. The Town hall has to issue this certificate.

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Can I buy property in Spain and rent it out?

Many of those who purchase property in Spain do so with the intent of renting it out for holiday lets. … To be clear, property owners in Spain are free to rent out their houses or apartments to whomever they wish. In fact, it is one of the fundamental rights of property ownership, to earn rent from one’s asset.

Do I have to pay tax on rental income in Spain?

Property Rental Income Tax

Income from rent is taxed at rate of 19% if you are a resident in an EU country, and 24% if you are not. If you are resident in Spain, you can offset certain allowable expenses. For example mortgage interest, insurance, other taxes such as IBI and bills like community fees.

What documents do you need to rent in Spain?

Documents required to rent a property in Spain as a foreigner

  • proof of the ability to pay the rent (bank statement, employment contract, payslip);
  • the tax identification number (NIE);
  • the passport.

Can I rent out my property in Spain after Brexit?

If you wish to buy a property in Spain to rent out, whether short term or long term, then you are still able to use the property for that purpose after Brexit, according to the rules applicable in each autonomous community. … EU residents pay tax on rental income in Spain at the rate of 19%.

Do I need an NIE number to rent a property in Spain?

So, be it your looking to rent a house, Villa or apartment in Spain the answer is you do not need your Spanish NIE Number to rent a property.

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How long can you live in Spain without residency?

How long can I stay in Spain without becoming a resident? You can stay in Spain for a maximum of 183 days per year (6 months) in order to not become a resident. If you spend an extra day (184 days and onwards), you will be regarded as a resident, hence paying resident taxes in the country.

Do you pay council tax in Spain?

IBI is a local charge in Spain that is similar to council tax in the UK. … Depending upon where in Spain your property is located you can expect to pay this expense either once or twice per year. IBI is based upon the rateable value of your property and is paid to the local town hall.

How many days can I stay in Spain after Brexit?

During this meeting, Mazon asked the Ambassador to extend the 90-day period that British citizens are allowed to stay when visiting Spain within any 180 days, reports.

What happens if you don t report rental income?

Investors who don’t report rental income may be subject to accuracy-related penalties, civil fraud penalties, and possible criminal charges. In most cases, rental income is taxed as passive income rather than earned income requiring payroll tax withholding.

What happens if I don’t declare rental income?

If you owe tax on your rent you’ll need to tell HMRC about the rental income you haven’t declared by making a voluntary disclosure. … If you fail to disclose and are investigated, HMRC can charge penalties of up to 100 per cent of the unpaid liabilities, or up to 200 per cent for offshore related income.

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How do I avoid paying tax on rental income?

The good news is, you can reduce what you owe in income taxes on rental income by claiming deductions for depreciation and rental expenses, such as maintenance, upkeep and repairs. When you sell a rental property, you may owe capital gains tax on the sale.

Do you need a Spanish bank account to rent in Spain?

The rental agreement in Spain is valid in both written and verbal form. … The contract itself is a very useful document to have at hand – you will need your Spanish contract to register on a Padron (with local authorities), open a Spanish bank account or apply for a permanent residency in Spain.

Are utilities included in rent in Spain?

Cost of renting a home in Spain

In addition to the rent, expect to pay for utilities and minor repairs due to wear and tear.

How long can you rent for in Spain?

Most long-term rentals in Spain are a 3 year fixed term. It’s possible to get annual renewal afterward if you and the landlord agree. If you want to leave before the 3 years are up, you must give the landlord 2 months notice.