Model 210 Income tax from rent (tourist rental) minus loan interest (mortgage in Spain vs. mortgage in homeland)

Posted: Tue Apr 2, 2024 2:04pm

2 replies1 member subscribed

dksurf

Posts: 2

Location: Teulada

Joined: 2 Apr 2024

Hi all,

I'm very new here as I'm in the process of purchasing a property in Spain.

I have a doubt concerning how to take into account the loan interest...

Apparently the Modelo 210 allows me to deduct the interest payment from my rental income.

In my mind there are 2 cases when it comes to mortgages: 1) having a mortgage on the purchased property in Spain 2) having a mortgage on a property in the respective homeland

Case 1) Purchasing the property with a mortgage on the the acquired spanish property --> This should allow me to deduct the interest payment from the income without a problem

But in Case 2) I have a mortgage on a property in my homeland and use the money to buy the spanish property and have to pay interest rate in my homeland...

Here comes the question: When doing the Modelo 210 declaration, is it possible to deduct the interest payments for the property loan in my homeland from the rental income made in Spain?

Hopefully anyone of you with a mortgage in your homeland can help me in this.

Thanks a lot in advance!

Kind regards,

David

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Posted: Tue Apr 2, 2024 3:20pm

marcliff

Legendary helpful member

Posts: 1705

2070 helpful points

Location: Rojales

Joined: 5 Jan 2023

Posted: Tue Apr 2, 2024 3:20pm

You don't say where you are from. If a non resident from outside the EU (ie UK) then you cannot claim expenses on your 210.

For EU and EEA citizens only mortgage interest on the property in Spain can be deducted but they can also claim for other expenses such as waste collection, maintenance costs, utility bills and more. A 3rd country citizen cannot claim these expenses. They cannot claim for mortgages in other countries.

Posted: Thu Apr 4, 2024 8:13am

dksurf

Original Poster

Posts: 2

Location: Teulada

Joined: 2 Apr 2024

Posted: Thu Apr 4, 2024 8:13am

marcliff wrote on Tue Apr 2, 2024 3:20pm:
You don't say where you are from. If a non resident from outside the EU (ie UK) then you cannot claim expenses on your 210.
For EU and EEA citizens only mortgage interest on the property in Spain can be deducted but they can also claim for other expenses such as waste collection, maintenance costs, utility bills and more. A 3rd country citizen cannot claim these expenses. They cannot claim for mortgages in other count...

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...ries.

Hi Marcliff,

thanks so much for your prompt and helpful answer.

Just as I thought then, it’s only possible to claim the mortgage interest on the property in Spain and not (in my case Germany) the possible mortgage payments on a property in Germany.

A good day to everybody :)