Tax Guide for Non-Resident Owners of Vacation Rentals in Spain

Non-Resident Income Tax (IRNR)

1. Residents of the EU, Iceland, and Norway:

• Tax Rate: 19% on net rental income.
• Deductions: Expenses directly related to rental income, such as maintenance, repairs, and operational costs, are deductible.

2. Residents outside the EU, Iceland, and Norway:

• Tax Rate: 24% on gross rental income.
• Deductions: No expense deductions are allowed; tax is applied to total rental income earned.

IRNR declarations and payments are submitted quarterly using Form 210 from the Spanish Tax Agency.
🔗 Spanish Tax Agency Website

Value Added Tax (VAT)

Whether VAT applies depends on the services offered alongside the accommodation:

• Without complementary services (pure accommodation):
  The rental is subject to VAT but exempt, meaning you do not need to charge VAT to the tenant.

• With complementary services similar to hotel offerings (e.g., daily cleaning, linen changes, catering):
  The rental is subject to VAT at a rate of 10%.

If a non-resident provides complementary services, it is considered that they operate through a permanent establishment in Spain, triggering additional tax obligations, including Corporate Tax filings.

Tenant Withholding Obligations

• If the tenant is a Spanish resident company or professional, they may be required to withhold a portion of the rent as an advance on the owner’s IRNR.
• If the tenant is an individual (non-professional), no withholding obligation applies. In this case, the non-resident owner is responsible for declaring and paying the tax.

Additional Considerations

• Obtaining a Spanish Tax Identification Number (NIF):
  Non-resident owners must obtain a NIF to meet Spanish tax obligations.

• Double Taxation Agreements:
  Check whether a tax treaty exists between Spain and your country of residence to avoid double taxation and potentially benefit from tax reliefs.

• Professional Tax Advice:
  Spanish tax regulations for non-residents can be complex. It is strongly recommended to consult a specialized tax advisor to ensure full compliance.

For more detailed information, visit the official Spanish Tax Agency website:
🔗 Spanish Tax Agency – Non-Resident Taxation