EDITOR'S NOTE: Solicitor Raymundo Larraín Nesbitt explains the rental reliefs non-resident landlords may now benefit from, following a recent European Court of Justice ruling.
By Raymundo Larraín Nesbitt
Lawyer – Abogado
13th of January 2017
Following a recent European Court of Justice ruling, non-resident landlords may now benefit from the same tax allowances that were previously earmarked for Spanish residents. This will greatly mitigate your tax bill on renting out your Spanish property.
You can read a long unabridged article on the matter here which explains the changes in more detail, or else continue reading for the short version.
This is a closed list. In addition to the letting reliefs listed below some regions in Spain may offer additional rental deductions.
Examples of maintenance costs (deductible): repainting over flaky paint, plumbing, debugging, tennis court green mold cleaning, swimming pool pump replacement, annual lift maintenance, leaking faucet.
Examples of refurbishment expenses (non-deductible): glass curtains, double-glazed windows, parquet, marble floor, extension to property (outbuilding), tennis court, swimming pool, private lift.
Notwithstanding the above, refurbishment expenses (improvements) may be claimed on selling the property by offsetting them against your Capital Gains Tax liability. Please read my article: Taxes on Selling Spanish Property.
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