If you own a property in Spain and rent it for €1,000 per month, your annual gross rental income is:
€1,000 × 12 months = €12,000 per year
However, the tax you pay depends mainly on your tax residency. The rules are different for EU/EEA non-residents, non-EU/EEA non-residents and Spanish tax residents.
Important: this article is general information only. It is not tax, legal or financial advice. Always confirm your situation with a Spanish tax adviser.
Quick Summary
- A property rented for €1,000 per month generates €12,000 gross income per year.
- EU/EEA non-resident owners are generally taxed at 19% on net rental income.
- Non-EU/EEA non-resident owners are generally taxed at 24% on gross rental income.
- Spanish tax residents declare rental income under IRPF, depending on their full personal situation.
Quick comparison
| Owner profile | Tax basis | Typical rate | Simple result |
|---|---|---|---|
| EU/EEA non-resident | Net rental income | 19% | expenses may be deducted |
| Non-EU/EEA non-resident | Gross rental income | 24% | expenses generally not deducted |
| Spanish tax resident | Net income under IRPF | progressive | depends on full personal situation |
Scenario 1: EU/EEA non-resident owner
If the owner is tax resident in the EU/EEA but not in Spain, Spanish rental income is generally taxed at 19%.
EU/EEA non-resident owners may usually deduct eligible property-related expenses, provided they are properly documented and directly connected to the rental activity.
Example:
Annual rent: €12,000
Example deductible expenses:
- IBI property tax: €500
- Community fees: €600
- Insurance: €300
- Maintenance and repairs: €400
- Mortgage interest: €1,500
- Depreciation: €1,800
Total example expenses: €5,100
Net rental income:
€12,000 - €5,100 = €6,900
Estimated tax:
€6,900 × 19% = €1,311
In this example, the estimated Spanish tax would be €1,311.
Scenario 2: Non-EU/EEA non-resident owner
If the owner is tax resident outside the EU/EEA, Spanish rental income is generally taxed at 24% on the gross income.
This means expenses are generally not deducted under the standard non-resident calculation.
Example:
Annual rent: €12,000
Estimated tax:
€12,000 × 24% = €2,880
In this example, the estimated Spanish tax would be €2,880.
This is why non-EU/EEA owners should calculate net profitability carefully before buying a rental property in Spain.
Scenario 3: Spanish tax resident owner
If the owner is tax resident in Spain, rental income is normally declared in the annual Spanish income tax return.
The owner may usually deduct eligible expenses related to the property. The final tax depends on the owner’s full income, personal situation and applicable tax bands.
For long-term residential rentals used as the tenant’s habitual home, certain reductions may apply in specific cases. These reductions do not normally apply to tourist rentals.
Tourist rental or long-term rental?
The tax result can also depend on how the property is rented.
Before buying, owners should confirm whether the property will be rented:
- long-term;
- mid-term;
- short-term as tourist accommodation.
Tourist rentals may also involve local rules, licensing requirements, community of owners restrictions and possible VAT questions.
Bottom line
A property generating €1,000 per month does not produce the same tax result for every owner.
As a simple comparison:
- an EU/EEA non-resident owner with deductible expenses may pay around €1,311;
- a non-EU/EEA non-resident owner taxed on gross income may pay around €2,880;
- a Spanish tax resident owner is taxed under IRPF, depending on their full personal situation.
The key point is simple: rental yield should always be calculated after expenses, taxes, management fees, maintenance, vacancy periods and possible personal use.
For buyers on the Costa Blanca or the Costa del Sol, Spanish rental income tax rules are national, but local costs, rental demand and tourist rental rules can vary significantly by location.
