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Taxes based on rentals

Posted: Tue Jan 2, 2024 12:47am
4 replies5 members subscribed
Julie62

Posts: 27

1 helpful points

Location: Casares

Joined: 12 Aug 2022

Hi,

I hope someone can advise please. 

I have a property which I rent short term.  I am aware I have to pay income tax every quarter and there is an annual tax based on the cadastral value (due December)

My question is do you have to pay tax when the property is not rented out. (Non rental periods)

Hope my question is clear and not confusing as I am somewhat confused myself.

Thank you

Holaitsdavid

Posted: Tue Jan 2, 2024 2:23am

Holaitsdavid

Very helpful member

Posts: 1481

559 helpful points

Location: Mijas Costa

Joined: 30 Mar 2021

Posted: Tue Jan 2, 2024 2:23am

You pay council tax if rented or empty.

https://www.realista.com/resources/buy/taxes-on-owning-a-spanish-property/

Chris67

Posted: Wed Jan 3, 2024 11:02am

Posts: 3

2 helpful points

Location: Los Boliches

Joined: 11 Feb 2022

Posted: Wed Jan 3, 2024 11:02am

Julie, my understanding of the tax system for non residents is that you declare the number of days the property was rented for each quarter as well as the amount. For the annual tax you add up the number of days the property wasn’t rented and pay a tax based on the castral value and pro rata for the number of days it wasn’t rented. Eg if the property wasn’t rented for 30 days each quarter you would have to pay (30x4)/365 of the tax based on the castral value. I hope this is right. 

Julie62

Posted: Wed Jan 3, 2024 12:37pm

Julie62

Original Poster

Posts: 27

1 helpful points

Location: Casares

Joined: 12 Aug 2022

Posted: Wed Jan 3, 2024 12:37pm

Chris67 wrote on Wed Jan 3, 2024 11:02am:

Julie, my understanding of the tax system for non residents is that you declare the number of days the property was rented for each quarter as well as the amount. For the annual tax you add up the number of days the property wasn’t rented and pay a tax based on the castral value and pro rata fo...

...r the number of days it wasn’t rented. Eg if the property wasn’t rented for 30 days each quarter you would have to pay (30x4)/365 of the tax based on the castral value. I hope this is right. 

Hi chris,

Thank you for the input, I now leave all the taxes to my letting agency. Think that's the easier option. Think you need to be an accountant to understand it all..🤣

velezboy62

Posted: Wed Jan 3, 2024 11:36pm

Posts: 67

8 helpful points

Location: Vélez-Málaga

Joined: 13 Aug 2021

Posted: Wed Jan 3, 2024 11:36pm

I have a holiday home in Velez Malaga, i do not rent it out, i am aware that tax as to be paid if i rent my house. However i found out that tax has to be paid seperate based on non resident tax based on the catastral value of the house, i used a company called TAXADORA online they calculated and backdated the tax 

i owed it wasn't a lot aprox €147 euros for 18 x months Taxadora do charge an admin fee which was included in my total invoice.

I still have to pay for my IBI rates which covers council tax and waste this is seperate from non resident tax this was aprox €150 euros.

Staff at your local town hall will give you help on what taxes have to be paid owning a property in Spain

I hope this Helps with your enquiry.

Warm Regards

Velezboy62 (Steve)

Velezboy62

Steve aka Velezboy62

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