Tax on rented property

19% on income after taking off certain allowable expenses...

19% but that will rise I believe when we leave the EU. Not sure to what rate but some sites stating 25%

Thanks Jim but i wonder if we hv any threshold of income to pay this high rate? pls let me knw if u hv any idea because as it is i'm not sure if i want to take the risk and with high tax, making me wonder if its worth ii at all! Thanks again

Only your personal tax allowance of aroubd 5500-6500€ but you can deduct  many expenses from the rental income before youre left with the taxable income. Dont forget you also need a tourist licence to legally rent out your property for holiday lets

Thanks Chris you've been so helpful. I bought the place off plan un 2005(: and i got the full possession last year, never let it out so very worried if i'm doing the right thing or not! Should i consider myself as "resident or non-resident ' because i was given this NE no at the time of the purchase. Do i hv to hv an accountant to do the books or i should trust the agency who is finding the tenets? 

I intend to let on a long term basis, for 11 months to start with. Thanks

Hi,

Not sure about a threshold, I am assuming you are non resident? That you dont live in Spain in excess of 6 months a year?

I am non resident and rent my flat out but this is my first year and I am going ti make a decision at year end whether to continue.

You need to do 4 tax returns a year at each quarter if uou are non res and I have to have my solicitor do this as returns in Spanish.

This costs me €133 per quarter and it all adds up.

Hope this helps and hope i have not put you off but I am on the fence right now as to whether I continue to tent or not.

Get back to me if you need to.

Good lucjim

you are non resident .....you need to see a tax advisor....we use Mare Nostrum Law and Tax in Los Alcazares opposite the Costa Narejos Hotel....you may find its not worth your while as you would have to also pay a keyholding/management company if you dont live here.

Thanks Jim. You have helped me to get out of my dilemma. 

I don't think I should go ahead with this. There are so many hurdles and it would be extremely difficult to deal with, especially when I am not living there. After paying the insurance, agent, servce charges, maintaince, sol fee, council tax etc, I'll be left with nothing, so whats the point in loosing my sleep. At least right now I have peace of mind. And the rent is pathetic anyway. 

Thanks again Jim

Thanks Chris. Yes you are right, its not worth while after paying all fees, i'll be left with nothing but to get my beautiful flat ruined :) I am sure my agent won't like it when i'll break this news to him.

Many Thanks again Chris