Taxation on Rental Incomes of EU Nationals non Residents in Spain

Non-residents who prove their tax residence in another EU or EEA State and who rent real estate in Spain can pay the Income Tax (19% since 2016) on net income, and not on gross rent.

These people can deduct all the expenses derived from the property (in proportion to the period that the property has been rented):

  1. – Interest produced by mortgages or loans that are paid for the purchase of the house.
  2. – National and Local related taxes: IBI, garbage tax, lighting…
  3. The amounts accrued by third parties in direct or indirect consideration as a result of personal services, such as administration, surveillance, or similar.
  4.  Those caused by the formalization of the lease, sublease, assignment or constitution, and those related to legal defense of the assets, rights or returns.
  5. Debts of doubtful collection, provided that it is sufficiently justified.
  6. Maintenance and repair expenses.
  7.  The amount of premiums for insurance contracts, whether civil liability, fire, theft, glass breakage or other similar nature.
  8. Amounts allocated to services or supplies (electricity, water, gas, telephone).
  9. The amounts destined to the amortization of the property in the conditions established by regulation.

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