Holiday Rentals

How much tax do you pay on holiday rental income in Nerja Spain

How much tax do you pay on holiday rental income in Nerja Spain

The Spanish Revenue, in order to bring into the open all the undeclared tourist rentals, according to the Form 179 approved by RD 1070/2017 of 29 December, this new law obliges to the companies that intermediate to supply accommodation for tourist purposes such as Casasol to submit the From 179.

What information should be provided on the Model 179 declared by Holdiay Rental portals like Casasol?

  • Identification of the owner or owners of the property, of the holder of the right to lease the property and the people or entities renting the property.
  • Number of days in which the dwelling is rented for touristic purposes.
  • Rental Incomes received by the owner of the property.

Deadlines and Form of submission of the Model 179

Form 179 will enter into force in July 2018, and those required to file this return will be required to provide information for the entire 2018 period, including the first two quarters of the year.

Form 179 must be filed on a quarterly basis during the calendar month following the end of each calendar quarter, as is the case with the quarterly VAT filing. As an example, the first quarter will be settled in April and the second quarter in July.

In summary all the owners that have rented their property in Spain and do not declare the incomes, according to the new law from 2018, the tax office, with the information received through the Form 179, will know all the necessary details to claim the taxes for rental incomes and the corresponding fine.

On the other hand, owners who rent their houses in Spain are required to declare rental income through the form 210 every quarter and once annual.

What is the form 210?

Non-resident Spanish Property Owners

If you are a non-resident but you own property in Spain you will be subject to the following Spanish taxes: Non- Resident Property Tax (Impuesto sobre la Renta de no Residentes)

When a property is owned by more than one person each one of them is considered an independent taxpayer and must present a separate tax return. Depending on the use of the property, the applicable income taxes are:

Income Tax on Properties for Private Use

This is calculated from the property’s cadastral value (valor catastral). All properties in Spain are registered on a census and assigned a cadastral value. From 2015 onwards, the income tax on properties for private use is 2% of the cadastral value, of which you are charged a percentage (see table second page).

This is an annual tax calculated according to the calendar year (1 January – 31 December). If you’ve not been the owner of the property during the whole year or if the property was rented out for some portion of the year then you will only pay income tax proportionate to the time period in which the property was yours for private use only.

Income Tax on Rented Property

If you’re a non-resident and you rent your Spanish property then you are obliged to declare the total amount of rent you receive without deducting expenses. However, if you are a member of an EU state, Iceland or Norway then from 1 January 2015 in order to calculate the tax base you can deduct allowed expenses directly related to your rental income as established in the Ley del Impuesto sobre la Renta de Personas Físicas.

You will be required to pay tax on rental income at the following rates:

Residents of the EU, Iceland and NorwayResidents of other countries
Tax Rate19%24%

Rental tax is declared and paid quarterly between the following dates. You pay tax on income earned during the 3 month period previous to the declaration:

  • 1 – 20 April
  • 1 – 20 July
  • 1 – 20 October
  • 1 – 20 January

We have closed a collaboration with the tax adviser for our clients. Please contcat us if you need any assitance.

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