Does anyone have any understanding on the legal and taxation on renting a property in Spain
Do you need to registar the property with anyone ie. Tourism Thank you
Renting private villa in Spain tax/law
rental laws
If the rules for this are as misunderstood/complicated/unknown as some of the other laws regarding such things as paperwork to be kept in your car, or driving licences etc., I do wish you luck in find the answer to that question ! If you find out I'd love to know. ALl the best in the hunt !
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johntaylor
- Posts: 15
- Joined: Mon Sep 20, 2004 11:14 am
- Location: Pedreguer, Costa Blanca, Spain
- Contact:
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johntaylor
- Posts: 15
- Joined: Mon Sep 20, 2004 11:14 am
- Location: Pedreguer, Costa Blanca, Spain
- Contact:
Quote from the book: You and the Law in Spain:
"It is quite legal and proper for you, as either a resident or non-resident property owner in Spain, to rent out your property, but remember you should declare your rental income for Spanish Income Tax.
Even if your tenant pays you in sterling before he leaves for Spain, legally this income arises in Spain because the property is in Spain. It is almost certainly true that many owners who let their property occasionally on a casual basis say nothing about it to the tax authorities and the chances of getting caught are slim. Nevertheless, Spanish Income tax is due on any income arising in Spain.
If you are non-resident, you are liable for 25% from the very first euro of rental income, declared on form 210. You may not take advantage of the new reduction of 50% introduced for resident landlords in 2003.
If you are renting a property on a regular basis and dealing with short-term visitors throughout the year and providing hotel-type services, you should register your property as a tourist letting accommodation, which means inspectors will come to inspect standards.
When you let your property legally, you can put down the maimntenance expenses of your property as a business expense and deuct this from your tax"
My own advice to you is to get yourself a fiscal adviser to help you through all this. They don't charge a lot and are available at most lawyer's offices. I have to see one at the beginning of October so will pass on to you the consequences of my visit!!
"It is quite legal and proper for you, as either a resident or non-resident property owner in Spain, to rent out your property, but remember you should declare your rental income for Spanish Income Tax.
Even if your tenant pays you in sterling before he leaves for Spain, legally this income arises in Spain because the property is in Spain. It is almost certainly true that many owners who let their property occasionally on a casual basis say nothing about it to the tax authorities and the chances of getting caught are slim. Nevertheless, Spanish Income tax is due on any income arising in Spain.
If you are non-resident, you are liable for 25% from the very first euro of rental income, declared on form 210. You may not take advantage of the new reduction of 50% introduced for resident landlords in 2003.
If you are renting a property on a regular basis and dealing with short-term visitors throughout the year and providing hotel-type services, you should register your property as a tourist letting accommodation, which means inspectors will come to inspect standards.
When you let your property legally, you can put down the maimntenance expenses of your property as a business expense and deuct this from your tax"
My own advice to you is to get yourself a fiscal adviser to help you through all this. They don't charge a lot and are available at most lawyer's offices. I have to see one at the beginning of October so will pass on to you the consequences of my visit!!
Taxation on renting
Thank you for your response It is very interesting I will contact my lawyer/Fiscal adviser Once again thank you
and good luck with your move to Spain
and good luck with your move to Spain