How to settle rental income in Spain?
What to do once you have received a Tourist License and start renting your apartment or house? It is the responsibility of the property owner to account for income from short-term rentals, such as vacation apartments made available privately or through platforms such as Airbnb or Booking.com. In Spain, these types of taxes are settled using the Modelo 210 form.
Tax rates
- 19% – applies to citizens of the European Union (EU).
- 24% – concerns people from outside the EU.
Billing deadlines
Until now, the declaration had to be submitted quarterly – by the 20th day of the month following the end of the quarter, but from 2024 the possibility of one-year settlement of the short-term rental tax has been introduced. In this case, the declaration must be submitted by 20 January of the following year.
How to settle real estate rental tax?
1. Collect revenue data
Documents you may need:
- lease agreements,
- Invoices from intermediary platforms (e.g., Airbnb, Booking.com)
- confirmation of payment from tenants.
From these documents, calculate the total revenue earned in the quarter or year.
2. Identify the costs associated with renting
You can deduct:
- costs of maintaining the property (e.g. internet, television, cleaning company),
- renovations, purchase of furniture and equipment,
- insurance, rent, taxes,
- commissions for intermediary platforms,
- expenses on real estate advertising.
Attention! The costs should be proportionally divided by the number of rental days in the billing period.
3. Fill out the Modelo 210 form
The form should include:
- total rental income,
- costs to be deducted,
- real estate data,
- personal data of the property owner.
4. Make a declaration
The finished form must be submitted electronically to the Spanish tax office (Agencia Tributaria), using the electronic signature you have already obtained with your tourist license, and paid, for example, by bank transfer from a Spanish or foreign account.
Summary
Filing income tax on rental property in Spain requires accuracy, especially in terms of documenting income and expenses. Changes to the regulations from 2024 may simplify the process by allowing for a one-time annual settlement. Remember to meet the deadlines and fill out the declaration correctly to avoid problems with the Spanish tax office.
All information, in English, on the Agencia Tributaria website
https://sede.agenciatributaria.gob.es/Sede/en_gb/procedimientoini/GF00.shtml
The information is informative, in order to avoid problems with the tax office, we always recommend using an accounting office or a law firm.
