Rental vs own use: how Spain taxes your home
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In short
If you keep the home for yourself, Spain taxes a fixed imputed income based on the cadastral value, with no deductions. If you rent it out, Spain taxes the rent. Owners in the EU or EEA deduct costs first. Owners elsewhere pay 24% on the gross rent.
What is imputed income?
Imputed income (also called deemed income; renta imputada in Spanish) is income on paper. Spain assumes that a home you can use is worth something to you each year.
- 1.1% of the cadastral value if it was revised recently. For recent tax years that means in 2012 or later.
- 2% if it was not.
- Times your ownership share and the days you owned the home and did not rent it out.
- No costs are deductible. Not IBI, not community fees, not interest.
- The tax rate is 19% if you live in the EU or EEA and 24% elsewhere.
How is rental income taxed in Spain?
Rent is taxed on what you actually received, including all fees the tenant or guest paid.
Whether you may deduct costs depends on where you live.
A Spanish court ruled in July 2025 that owners outside the EU may also be allowed to deduct costs. The Spanish tax office has not changed its practice. For now, 24% on the gross rent applies.
| You live in | What is taxed | Rate |
|---|---|---|
| EU or EEA | Rent minus deductible costs | 19% |
| Anywhere else, including the UK | Gross rent, no deductions | 24% |
Which costs can you deduct from rental income?
If you live in the EU or EEA, these costs lower your tax:
- Mortgage interest.
- Repairs and maintenance, such as painting or replacing a broken boiler.
- IBI, community fees and home insurance.
- Utilities, management fees, agent fees and legal costs.
- Depreciation of the building: 3% a year of its value. The land does not count.
- Furniture and appliances: 10% a year.
Are there limits on rental deductions?
Yes, a few. They matter most in years with big costs.
- Improvements, such as extending a bathroom, are not deducted at once. They add to the value you depreciate.
- Interest and repairs together cannot be more than that year's rent. The rest carries over to the next four years.
- A loss is not paid out. The tax simply becomes zero.
What happens in a year with both rental and own use?
Every day counts once. A day is either rented or yours to use.
Example: you owned the home all of 2025 and rented it out for 120 days. Then 120 days are rental and 245 days are imputed income.
- Rented days are taxed as rental income.
- The other days you owned the home are taxed as imputed income.
- Costs tied to owning the home, like IBI, insurance and interest, count only for the rented days.
- Costs that exist only because you rent, like agent fees, count in full.
Do you file once per home or once per owner?
Once per owner, per property, per year. A couple who own 50/50 make two filings, each with half the rent and half the costs.
You file rental income once a year, even with several tenants or booking platforms.
ModeloTax looks for every deduction that applies to you. You upload your invoices, we help you prepare the filing and a gestor checks it.
Questions about this
- Do I pay tax if I only use the home for holidays?
- Yes. You pay tax on imputed income, based on the cadastral value. You do not need to earn anything from the home.
- Can I deduct IBI if I do not rent out?
- No. For own use, nothing is deductible. IBI only becomes deductible for the days you rent out.
- I live in the UK. Can I deduct my costs?
- Not under current practice. The UK has been outside the EU since 1 January 2021, so you pay 24% on the gross rent. The 2025 court ruling may change this later.
- Does the land count for depreciation?
- No. Only the building counts. Your IBI receipt shows how the cadastral value splits into land and building.