Rent a property in Spain? What you must do to stay legal!
Buying a Spanish property for investment purposes is a popular option. But if you plan to rent your purchase, what should you do to stay legal? In this article, we detail the requirements.
You made the decision that you want to rent your property in Spain. You may have purchased it specifically as an investment or simply want to use the time when you are not there to help fund your maintenance. Whatever your motivation, renting can be a good decision to generate extra income.
However, you must make sure that the opportunity to rent does not become a disaster. There is an obligation to rent your property and it is important to take the proper advice and make sure you stay on the right side of the taxpayer.
1st quarter - payable before April 20 2nd quarter - to be paid before July 20 3rd quarter - payable before October 20 4th quarter - payable before January 20
The declaration must be made before the 15th of the month and the tax is deducted from your bank account on the 20th. Most people choose to use a tax advisor to help with the process and make sure that they do not pay more than they should.
The good news is that expenses can be deducted if you reside in the EU, Norway or Iceland.
These include:
municipal taxes and municipal charges cost of services such as electricity and water any housing insurance that pays interest on your mortgage cleaning and laundry costs legal and accounting costs
It is worth establishing a system to track your expenses so that you can easily generate an accurate account sheet that will be presented along with the details of your income.
Each quarter, the details of your income should include: the names of the tenants Occupancy dates how much they have paid you If you are a resident of Spain and you are renting a second property, then you must declare it as part of your annual tax return. This is done before the end of June of each year.
Registering your tenants If you rent your property for short term rental, you must keep the Civil Guard or the National Police informed. You will be responsible for providing the information.
The police need to know the identity of each occupant of their property under 16 years of age. You must inform them:
Names and surnames Identity document of reference, p. passport number Birthdate Sex and nationality The dates of occupation
You should also let them have their own details, such as ID, first name, last name and the form with the information must be signed.
Renting a property is a good way to make your investment profitable. The requirements are not too onerous and fulfilling them guarantees that you can benefit from your property without worries.
