Aside from Local (IBI), Capital Gains, Wealth and Inheritance Taxes, non residents must pay tax on any income they receive that arises in Spain. Income tax for non-residents is charged at a fixed rate of 19% if you are a resident in an EU or EEA country For non-residents from the rest of the world, the rate is 24%. This includes a non residents property tax.
Non Residents Property Tax on No Income
If you own a property in Spain and earn rental income from it, then this has to be declared. What some non-resident owners of property in Spain are not aware of, is that they are also required to pay tax, regardless of whether the property is let out or not!
This tax is often referred to as an imputed income tax. Spanish tax legislation for some reason assumes that a non-resident owner derives some sort of benefit from owning property and provides a system to tax it.
For a long time private holiday rental regulation in Andalucia was uncontrolled. This changed at the beginning of 2016, when the regional government, Junta de Andalucia, brought in a host of regulations to conform with changes in national legislation.
Properties under Holiday Rental Regulation in Andalucia
Holiday rental regulation in Andalucia applies to:
- Individual privately owned properties where the complete dwelling is let for holiday purposes.
- Rooms in individually privately owned properties, in which the owner resides, e.g. bed & breakfast, Airbnb.
The maximum capacity, i.e. number of beds/people that can stay in the accommodation is limited by the occupation license, subject to overall maximum of 15 beds for complete dwellings and for bed & breakfast type arrangements – 6 beds, with no more than 4 beds in any one room.
Owners of holiday rental properties that fall into these categories, firstly need to list their property with the Registry of Tourism of Andalusia (RTA), in order to meet the first part of the regulatory requirements; secondly, meet the requirements within a year. During this time owners will not be allowed to host tourists/rent accommodation until fully compliant.
The Requirements of Holiday Rental Regulation in Andalucia