I am non tax resident in Spain and bought a house in Spain that I am thinking in renting out. At the time of filing my Spanish Tax Return in respect of the rental income, what expenses can I claim as deductible against the rental income?
As non tax resident of Spain, you must file a tax return trough FORM 210, including the total rental income received. This form must be filed on a quarterly basis, by the month of April, July, October and January following the relevant quarter.
Only in the case that you are tax resident in a EU country, you will be able to claim some expenses as deductible from the rental income. Some of these deductible expenses could be the following:
- Agents’ fees
- Accountants’ fees
- Mortgage interests
- Council Tax which you pay (IBI)
- Insurance premiums
- Costs of any maintenance and/or repairs
- Utility bills, in case you pay for them with no reimbursement from the tenant.
- Additional services, such as cleaning and window cleaning
- The net amount resulting once the above expenses are deducted, would be subject to a 19% flat rate.
In case of non-EU tax resident, the total rental income will be subject to 24% tax.