PDA

View Full Version : Legally renting out a holiday home



derek.j.a
11-06-2005, 06:45 PM
How do you legally rent out your holiday home in Spain?? Do you have to pay taxes to the Spanish authorities? Do you have to register with the town hall etc, and what safety/insurance requirements do you need. Thanks.

Expert advisor
11-14-2005, 09:23 AM
To legally rent a property in Spain, first of all, you should pay the Transfer Tax, by means of an official form which is bought in any Spanish Tobacconist´s (place where you can buy among other things, monopoly goods). It is advisable to sign a contract with the conditions and agreements for the renting.
The monthly rent you will obtain pays taxes differently depending on whether the landlord is resident or non resident in Spain.
Residents in Spain has to pay in their annual Income Tax and Non Residents pay the Wealth Tax including the 25% of each monthly rent to be paid to the Tax Authorities.
Regarding the Insurance, it is not compulsory to have an special insurance, however it is advisable.