Lettings in Spain - What about costs?

Are you renting out your property in Spain? What costs can you deduct?

You are a non-resident who rents out his property(s) on a regular basis at short notice for the purpose of holiday rentals. From the moment you receive compensation for this, you are obliged to keep a number of legal matters in order (fiscal and legal) including the declaration of rental income, the administrative obligations in this respect and the payment of taxes due.

This declaration is only made if you have let in a certain quarter of the current calendar year. If you have not let, you do not submit a declaration.

If you have rented out, you must declare the net income. The net income is the income you have left after you have deducted from the received income certain costs that are part of the subject letting or not.

What are the usual costs?

• The compensation of the community
• Invoices for utilities (water, electricity, gas, alarm system, TV, internet,...).
• Residential insurance - IMPORTANT THAT YOU MUST NOTIFY RENT. Suppose your tenant causes damage to third parties or causes fire one will come to the owner!
• Municipal tax (IBI)
• Mortgage interest on the rented property
• Costs incurred by the legal services for keeping your claim in order
• Additional costs if you use a cleaning service, key management
• Additional costs you incur for the promotion of your property