Tax implications of renting your property in Spain

It is a very common practice, amongst both foreigners and nationals, to rent out a second property that they don’t use for a certain period of the year to generate extra income and cover costs. However, this practice results in certain tax obligations for the owner in Spain, which we will aim to clarify in this post.

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Non-Resident Income Tax: What is it and why do I have to pay it?

As you may remember, I have referred to this tax in previous posts without fully explaining what it entails exactly. Here is a breakdown of the key facts of Spanish Non-Resident Tax.

The determining factor regarding what kind of Income Tax a natural o legal person pays in Spain is residence. Residents pay regular Income Tax (IRPF) or Corporation Tax (IS), and non-residents, both natural and legal persons, pay must pay Non-resident Income Tax (IRNR).

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Changes to Inheritance Tax in Spain: Are you entitled to a tax rebate?

Since the summer of 2014 there has been a wide media coverage on the EU ruling affecting Spanish Inheritance and Gift Tax. The existing tax legislation in Spain, at that time, created a situation of unequal tax treatment depending on whether the deceased and/or the inheritors were Spanish residents or not.

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