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rental expenses

Posted: Sat Jun 24, 2017 9:32pm
5 replies34 views3 members subscribed
Ally1894

Posts: 57

10 helpful points

Joined: 24 Jun 2017

Can anyone advise as to taxes etc that are due from rental income

jimtaylor

Posted: Sun Jun 25, 2017 5:00am

jimtaylor

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Posts: 5612

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Location: Mudamiento

Joined: 2 Feb 2017

Posted: Sun Jun 25, 2017 5:00am

I'm not up to date on the subject, so don't take this as gospel:

If you're resident, then you just include the net income on your modelo 100.

If non-resident, then it goes on your modelo 210, but you do quarterly returns for any quarter in which you've received income. For example, for income in Jan-Mar, you submit a return by April 20.

You can deduct expenses: mortgage interest, community fees, IBI, basura, water, electricity, gas, insurance, etc.

Current tax rate is 19%.

You don't pay IVA unless you're providing services like a hotel - meals, cleaning, etc.

Ally1894

Posted: Sun Jun 25, 2017 9:32am

Ally1894

Original Poster

Posts: 57

10 helpful points

Joined: 24 Jun 2017

Posted: Sun Jun 25, 2017 9:32am

Thank you.

Is this ok to diy or best to get proffesional

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jimtaylor

Posted: Sun Jun 25, 2017 10:30am

jimtaylor

Legendary helpful member

Posts: 5612

8738 helpful points

Location: Mudamiento

Joined: 2 Feb 2017

Posted: Sun Jun 25, 2017 10:30am

If you're used to doing your own tax returns, then you shouldn't have a problem. If someone else does them for you, then I'd leave it to them.

210s are quite easy to do, whereas 100s are a lot more difficult if you've not done one before.

Ally1894

Posted: Sun Jun 25, 2017 10:36am

Ally1894

Original Poster

Posts: 57

10 helpful points

Joined: 24 Jun 2017

Posted: Sun Jun 25, 2017 10:36am

Thank you

peetonn

Posted: Sun Nov 19, 2023 1:16pm

Posts: 32

3 helpful points

Location: La Zenia

Joined: 5 Aug 2018

Posted: Sun Nov 19, 2023 1:16pm

Sorry for resurrecting this, but I thought it's better to keep my question in the similar thread rather than creating a new one.

I'm curious about how exactly expenses can be written off:

1/ Is it required to calculate quarterly expenses pro-rata for the days the property was actually rented? 

i.e. say I had a total of €300 for utilities expenses over a quarter, but the apartment was rented for only 60 days out of 90, does it mean I can only subtract 2/3 of my utilities expenses  (€300 * 60 / 90) ? it does make sense to me, but I just want to check what do people do out there. if that's true, which categories should be handled like that (mortgage interest, communidad fees, IBI, insurance)?

2/ Unlike utilities which are always there, whether I rent out or not, I have expenses that directly connected to renting out business (i.e. cleaning per reservation, monthly listing fees like channel manager, dynamic pricing, etc.) -- can these be written off fully? it does make sense too, since I wouldn't have had such expenses if I weren't renting out.

3/ If there're three people on the mortgage, and only one of them is EU resident, it does make sense to split mortgage interest expense three ways and only write-off one third for the EU-resident person, doesn't it?

Looking forward to hearing your thoughts!

I am talking to a tax person regarding all of that (I want to claim taxes I overpaid since I became an EU resident), but as you may know, they usually answer reluctantly/sparingly before they get paid. But I'm exactly trying to understand whether the amount of taxes I get back will cover for tax accountant fees. So I just decided to pick the "community brains" on this topic =)

PS. As an additional layer of complexity on top of the above: as I mentioned above, there are three owners of the property (thus each quarter I submit IRNR x3 as non-EU residents), however, de-facto I'm the one who pays the mortgage, runs the renting business and gets renting income to my EU bank account. However, the taxes are declared for each of the three (and on top of that, I can't write off expenses for two other people since they're not EU residents). Are there any chances for me to negotiate or convince Agencia Tributaria that it should be just me, who pays the IRNR tax from now on?

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