Taxes for Landlords

Taxes for Landlords - Guide.

Rental income in Spain is taxed under personal income tax (IRPF) for residents or Non-Resident Income Tax (IRNR) for non-residents. The Housing Law (Ley 12/2023) changed the reductions for long-term homes. Here is how it works for 2026.

If you are tax-resident in Spain (IRPF)

For a long-term residential let you declare the net income - rent received less deductible expenses. Deductible expenses include IBI, community fees, insurance, repairs and maintenance, mortgage interest, supplies you pay, agent and legal fees, and depreciation (3% of the construction value).

The reduction on long-term residential lets

Net positive income from a long-term home benefits from a reduction:

• 60% for contracts signed before 26 May 2023.
• For contracts from 1 January 2024: 50% as the general rule; 60% if the home was rehabilitated in the previous two years; 70% for a first-time let to a tenant aged 18-35 in a stressed area; 90% if the property is in a stressed area and the new rent is at least 5% below the previous contract.

Andalucía note: Andalucía has not declared any stressed areas, so in practice the 70% and 90% tiers do not apply here - the 50% (or 60%) reduction is the usual case.

Holiday and short-term lets

Income from short-term and holiday lets is declared as rental income but gets no reduction. If you provide hotel-type services (reception, regular cleaning, meals) it is treated as an economic activity with different rules.

If you are a non-resident (IRNR)

• EU/EEA residents: 19% on the net income, with expenses deductible.
• Non-EU residents: 24% on the gross income, with no expense deductions.

Non-residents file quarterly using Modelo 210.

VAT (IVA)

Long-term residential rent is VAT-exempt. Short-term lets without hotel services are also exempt, but tourist lets that include hotel-type services carry 10% VAT.