Renting Property in Spain

Renting Your Property in Spain

Renting out your property is a great way to draw extra income. However, you must be updated with the latest laws on renting your property in Spain to stay safe from any legal issues that may arise because of negligence in the future. 

Tax and registration of tenants are the two main things that should be taken care of in Spain before when you rent a property.

Tax 

Your total rental income must be declared to the Spanish government and the necessary tax must be paid. A form 210 should be duly filled and filed and tax should be paid quarterly. The schedule is as below:

• 1st quarter (Jan to March)– payable before 20th April
• 2nd quarter (April to June) – payable before 20th July
• 3rd quarter (July to September)– payable before 20th October
• 4th quarter (October to December) – payable before 20th January

An automate is usually set up with the bank to deduct the taxes on the 20th of the months mentioned in the above schedule. You must declare all your rental income declaration by the 15th of the month which is scheduled for a tax deduction. 

The form should contain details of:

• Name of the tenants
• Dates of occupancy of the property
• The amount you are receiving against rent for the property

All residents of Spain, if renting out a second property must declare it in their annual income tax declaration.

Residents of Norway, Iceland, and the EU have some benefits when renting their property in Spain. They can deduct certain expenses and reduce their taxes. The expenses that can be shown include:

• Interest on mortgage
• Cleaning and laundry costs
• Council tax and community charges
• Cost of utilities such as water, electricity, etc.
• Legal and accounting costs
• Any house insurance that is being paid by you

You must have proper bills for the expenses that you are revealing in form 210.

Registration of Tenants

The Policia Nacional or the Guardia Civil should be informed about you renting your property – for short or long term. The local police must be informed about the details of the tenant(s) who are under the age of 16, occupying the rented property. The details of the tenants should be as mentioned below:

• Their complete name (including surname)
• Date of Birth 
• Passport number or Identity document reference
• Nationality and sex
• The dates of occupancy 

You as the landlord will also require mentioning your complete details including your full name (with surname), an acceptable ID, other personal information as required by the form. This form should be filled and signed by both parties before submitting it to the local police. 

Renting out your property is a wonderful way to earn money. However, make sure you follow all the legal rules required by the Spanish Government and then rent your property. Our team of property and tax lawyers will help you find out the exact tax that you must pay every quarter. We will also provide you with any legal advice that you need to be aware of when renting your property. You can call us on our details below to learn more about the services we offer.