Taxation of holiday rentals in Spain
When you rent a holiday home in Spain, you must comply with certain tax obligations. High-level rules (always confirm with an advisor). Updated September 2026.
1. Taxation of rental income
For non-residents (who do not live in Spain):
- Income from a Spanish property is generally subject to IRNR (unless a permanent establishment applies).
- Rates (capital income, no PE): residents of the EU/EEA (including Iceland and Norway; AEAT practice also often includes Liechtenstein): 19% of net income (eligible expenses may be deducted). Residents outside the EU/EEA: 24% of gross income (generally no deduction of expenses).
For residents (living in Spain):
- Rental income is included in IRPF at progressive rates. Combined state + regional rates are often in a range around 19% to 47%, depending on total income and the autonomous-community scale (Valencia may differ slightly). Do not treat 54% as a current standard top rate.
2. Deductible expenses
For EU/EEA residents (including Iceland and Norway):
EU/EEA residents can deduct certain expenses so that tax is paid on net income (non-EU/EEA residents generally cannot). Typical items include mortgage interest, maintenance and repairs (not major improvements), community fees, IBI, insurance, utilities for rented days, and depreciation of the construction (generally 3% of construction value, excluding land). Many expenses are deductible only in proportion to the days the property was rented.
For residents outside the EU/EEA:
Generally no deduction of expenses. Tax is levied on gross income at 24%.
3. Administrative obligations
- Non-residents must be identified (NIE/NIF) in order to file.
- Form 210: usual form for non-residents to declare rental income (no PE).
- In the Valencian Community a VUT inscription is required for tourist stays of 10 consecutive days or fewer.
- VAT: hotel-type services → typically 10%; without those services, generally exempt.
- Tourist tax: compulsory in some regions (e.g. Catalonia, Balearic Islands). The Valencian Community does not currently levy a general overnight tourist tax (2026).
Summary
- EU/EEA non-residents: 19% on net; other non-residents: 24% on gross.
- Expense deduction: generally only for EU/EEA non-residents, and only certain expenses, often pro rata.
- File the correct forms and keep the regional VUT inscription if you operate as tourist accommodation.