Which expenses can I deduct from Spanish rental income as an EU resident?

The principle: net income, pro rata

Residents of an EU or EEA country are taxed on what they actually earn from the let, not on the gross rent. You may subtract the costs needed to produce that income, then apply 19 %. Two conditions run through everything:

• the expense must relate to the property and the let;
• annual costs are only deductible for the share of the year the home was rented.

Expenses that are usually accepted

The list below is a guide to common items. Rules on specific costs can be strict, so keep proof and check anything unusual.

• IBI and the municipal rubbish charge;
• community fees (comunidad de propietarios);
• home insurance;
• repairs and maintenance that keep the property in its existing condition (not improvements, which follow other rules);
• utilities you pay as landlord: electricity, water, internet;
• agency, platform and management fees, cleaning between guests;
• interest on a loan used to buy the property;
• depreciation of the building, excluding the value of the land, and of furniture.

Your own travel to Spain, personal use costs and fines are not deductible.

How the proration works

Suppose your annual fixed costs (IBI, community, insurance, utilities) come to 3,650 € and the flat was let for 100 days in a 365-day year. The deductible share is 3,650 × 100/365 = 1,000 €. Costs that exist only because of the lets, such as the cleaner's invoice after each guest or the platform commission, are deducted in full.

With 9,000 € of rent, 1,000 € of prorated fixed costs and 1,200 € of direct letting costs, the net income is 6,800 €. At 19 %, the tax on the rent is 1,292 €. The rental simulator does this calculation for you.

Keep the evidence

Spanish tax inspectors can ask for invoices years later. Keep, for each year:

1. invoices in your name, ideally Spanish invoices with the supplier's tax number;
2. bank statements showing the payments;
3. the platform or agency statements of bookings and commissions.

If you live outside the EU and EEA, none of this applies: see non-EU landlords and deductions.