How to Declare the Rental Income in Spain?
If you have a rented home in Spain, it is mandatory to include the earned income on your Income tax (IRPF). However, the form of taxation varies according to the type of rental that you offer. Below, we explain the main scenarios and their fiscal implications:
Rental of a principal residence
If you rent your property as a regular residence of the tenant, the income is taxed as returns on capital, real estate. In this case, you can take advantage of a reduction of the 50% on net income, provided that the rent is properly declared and is for the exclusive use of the dwelling.
Example: If you receive 1,000 euros a month for rent (12,000 euros per year), but after deducting allowable expenses net income is of € 8,000, taxation only by 4,000 € thanks to the reduction of 50%.
Tourist Rental
If you are renting your home to short-term through platforms such as Airbnb or Booking, it is not considered rental usual housingbut that could be interpreted as a economic activity in certain cases.
Some of the tax obligations that you might have include:
Taxation as a performance of capital real estate if you don't offer services of the hotel industry (reception, periodic cleaning, extra services).
Taxation as an economic activity if you manage multiple properties or include any additional services.
Payment of VAT (21%) in certain cases.
Model 179, a tax obligation for owners whose properties are rented through digital platforms.
Tax deductions for Homeowners in 2025
As the owner, you can apply a series of tax deductions to reduce the tax burden of your rental income. These are some of the deductible expenses more common:
- Maintenance and repairs: Includes arrangements of plumbing, painting, electricity, etc Cannot be inferred structural improvements to increase the value of the property, such as a remodeling integral.
- Interest and mortgage insurance-linked: If you have a mortgage on the property leased, the interest paid may be tax deductible. Also the home insurance or non-payment of rent.
- Community fees, property TAX and municipal fees: You can deduct the contributions of the community of owners, as well as the Real Estate Tax (IBI) and other municipal fees.
- Agency fees and rental management: If you've hired a real estate agency to manage the rentals, fees, also are deductible.
Important! It is necessary to keep invoices and receipts for all expenses deducted to avoid problems with the Treasury in the case of inspection.
What Happens If You Do Not Declare Your Rentals?
Not to declare the rental income can lead to serious legal consequences and economic. Hacienda has tools to detect rentals not declared, as the crossroads of information with platforms of rent or tax inspections.
The penalties for failing to declare income include:
⚠️ Fines of up to 50% -150% of the amount not declared.
⚠️ Tax inspections if the Treasury detects income is not reported.
⚠️ Surcharges delayif you decide to regularize your situation voluntarily, but it's already past the time of presentation.
If you have rented your property without convicting him, it is advisable to to regularise the situation as soon as possible to avoid more serious penalties.
How to Declare your Car the Right Way?
To comply with tax obligations and to properly declare the rental income not only you will avoid problems with the Treasury, but that will also enable you to take advantage of deductions that will reduce your tax burden.
If you have doubts about how to pay your rent, efficiently, contact us. From our company, we advise you to optimize your statement and comply with the current regulations, avoiding unnecessary sanctions.
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