Individual property owners who are considered NON-RESIDENTS in Spain and rent out their property or premises located in Spanish territory must pay tax, depending on the type of renter, as follows:
– If the rental is destined to another private individual, they must file the non-resident income tax (IRNR). This is calculated over the difference between the income obtained and deductible expenses. It is calculated and filed on a quarterly basis, i.e. a tax return must be filed for the rents obtained in each quarter of the current year.
– If the rental is for businesses, the property owner must issue invoices with 21% VAT and make a 19% deduction on them. The landlord must submit and remit VAT on the rent each quarter. Here, it is possible to deduct costs carried by the landlord such as VAT on facilities, consultancy fees, etc.
Lucia Guillen Molina