TAX DECLARATION FOR RENTALS

If you rent out your property you are obliged to report it to the local Tax Authority (Agencia Tributaria/Hacienda).

RENTAL PERIOD

DATE TO BE REPORTED TO THE LOCAL TAX AUTHORITY

1st January - 31st March

1st – 20th April

1st April - 30th June

1st – 20th July

1st July – 30th September

1st – 20th October

1st October – 31st December

1st – 20th January

 

The actual taxation Rate on Rentals is 19% (2016)                           

If you would like Vogt to assist you with reporting your rentals to the local Tax Authority we will send you a form to be filled in with the following information for the corresponding quarter:

·         Name and Surname of Tenant

·         Passport or NIE nº of Tenant

·         Dates of each rental period

·         Receipt of amount received of the rental

·         The total expenses you want to include for the actual period

The expenses that can be deductible:

·         Property tax (IBI - Impuesto sobre Bienes Inmuebles)

·         Garbage tax (Basura)

·         Any expense directly related to your apartment, which is not paid by your tenant (eg: insurance, electricity, water, interest of mortgage and Community fees)

Expenses may only be deductible for the period your property is rented out except expenses directly related with rental contract such as certain fees/commissions (agents /advisors / lawyers for rental contract etc.).

These kind of expenses are 100% deductible even when they are issued or paid before beginning of the contract.

Deduction of legal annual depreciation of the house, furniture etc.

You may deduct maximum 2% of the value of construction of the house per year, though the deduction can only be made for the period your property is rented out.

E.g. Purchase prise: 200.000 Euro. If you rent out your house 2 months the actual year you may deduct 666,67 Euro ((200.000 x 0,02)/12)*2

You may deduct maximum 10% of the acquisition value of furniture for your property per year, though the deduction can only be made for the period your property is rented out.

TAX DECLARATION OF VAT

If your property is registered at the Tourism Registry in Spain (“Decree 28/2016 concerning the rentals of properties with touristic purposes”), and you are renting out your property to an agency or provide your tenants with typical services offered by hotels such as laundry and cleaning during the stay of your tenants) you are also obliged to declare the VAT (rate 21% if you are renting out your property to an agency and 10% if you are renting out your property directly to your tenant) to the local Tax Authority (Agencia Tributaria/Hacienda).

In the above case, please note that once you start renting out your apartment you will be obliged to declare for the VAT of your rentals, even for the quarters that you are not renting out.

 

RENTAL PERIOD

DATE TO BE REPORTED TO THE LOCAL TAX AUTHORITY

1st January - 31st March

1st – 20th April

1st April - 30th June

1st – 20th July

1st July – 30th September

1st – 20th October

1st October – 31st December

1st – 20th January

 

 

If you would like Vogt to assist you with presenting your rentals and the VAT to the local Tax Authority, the fee is: (to register you as a VAT liable is also included in the fee):

TAX DECLARATION FOR RENTAL  NON-RESIDENT &  EVENTUAL DECLARATION OF VAT

NET

VAT 21%

TOTAL

COST PER QUARTER

€ 100,00

€ 21,00

€ 121,00

 

For any query related to Accounting and Taxes, please do not hesitate to contact us on the following address:
This email address is being protected from spambots. You need JavaScript enabled to view it.

 

Forfattet av advokat Einar Askvig

 

TAX DECLARATION FOR RENTALS VER.3.0_16/11/2016

 

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