Tax on rented property

Ask a Spanish accountant.

Abaco Advisers I recommend.

You will have to file a return for the rental income. you can deduct costs which should include the letting agent fees. 

https://taxadora.com/rental-income-taxes-in-spain/

Use the people above to file the return, they will answer any questions quickly by E mail.   Much cheaper than using an accountant they are excellent.  

Hi Ian, post Brexit changes mean Uk treated as third country and your rental income is taxed at 24% of GROSS. You can no longer off set costs, fees etc against your gross income.

Hi Katy

Thanks for this. 

At least it makes submission of the rental income to the tax authorities in Spain very easy indeed.

Ian

Correct if not an EU citizen 

Hi David

My understanding from numerous sources now is that only EU residents can make such deductions.

Since Brexit, UK is of course outside the EU and property owners have to pay 24% with no deductions for expenses. Even the source you quote confirms this. 

Ian

Can I make deductions? I see the line Only members in the EU can make 'certain deductions'  I think you should check with E Mail link to be sure what those deductions are. 

If you do not rent out your home, you can not make any deductions at all. You simply pay the percentages that apply based on your appraisal value.

If you rent out your home, you can deduct any direct costs related to the rental. There are a variety of ways to calculate these and we recommend that you contact us if you are unsure. The normal thing is to make deductions for electricity, water, communidad, maintenance (not renovations), interest rates (with Spanish housing as a loan object), costs for rental companies and possibly furniture.

We also help to figure out standard deductions that you are entitled to. Feel free to contact [email protected] if you are unsure.

Certificate of tax domicile

Certificate of domicile is a document issued by the Tax Agency in your home country explaining that you have your tax residence in your home country. The Spanish Tax Agency may request this document if they are unsure of where you have your tax residence or suspect you should pay more tax in Spain. 

It is especially important to have this if you want to apply for a deduction in connection with rentals. Only members in the EU can make certain deductions and pay a lower tax rate, which means that the Spanish tax authority may require a resident certificate to prove that you are liable to tax in your home country.

In this link does state "If you are a NON EU resident (UK included), you can’t deduct any expenses since 01/01/2021" Which a must say seems ridiculous, clear Spain want's little FDI.  I would still check with [email protected] and ask if any ways to reduce, surely somethings must be deducible like agent fees? 

https://bravolegal.es/rental-income-tax-in-spain/

Hi David,

A good Spanish accountant is worth paying to do your tax return. 

They will advise what information is needed.

Spanish tax system is very different to the UK.

Chris 

Hi David

I really appreciate your interest in this. Thank you. 

Some would say it’s ridiculous, others would say a natural result of Brexit, yet others would describe it as a spiteful response to Brexit. 

EU citizens can not only deduct expenses, they also pay a reduced tax rate of 19%. 

I have checked with expert lawyers, and this really is the case. 24% on gross rentals with no deductions. 

Ian