Es Rental Income

Spain Rental Income -- IRPF Skill v1.0

General reference only. This skill is general tax/accounting reference material for AI-assisted workflows. It has not been reviewed for any specific person's facts, documents, elections, deadlines, residency, filing status, or local procedures. Do not rely on it to file, pay, amend, or take a tax position without review by a qualified professional in the relevant jurisdiction.

Section 1 -- Quick Reference

IRPF General Tax Rates (2025) -- Escala general (state + regional average)

Note: Exact rates vary by Comunidad Autónoma (regional scale applies to ~50% of the tax).

Key Features

Conservative Defaults

Section 2 -- Classification Rules

2.1 Rental Income (Rendimientos del Capital Inmobiliario)

2.2 Deductible Expenses (Gastos Deducibles) -- Art. 23 LIRPF

2.3 Non-Deductible / Capital Expenses

2.4 Amortización (Depreciation)

Rate: 3% per annum on the greater of:

1. Acquisition cost of construction (excluding land value), or
2. Valor catastral of construction component (from IBI receipt)

Land/construction split: The recibo del IBI shows valor catastral del suelo (land) and valor catastral de la construcción (building) separately. Apply 3% to construction portion only.

Example:

• Purchase price: €200,000
• IBI shows: 40% land, 60% construction
• Construction cost: €200,000 × 60% = €120,000
• Annual depreciation: €120,000 × 3% = €3,600

2.5 The 60% Reduction (Reducción por arrendamiento de vivienda)

Ley 12/2023 (Housing Law) updated reductions (effective for new contracts from 2024):

• 90% if rent reduced by 5%+ on new contract in zona tensionada
• 70% if rented to young tenant (18-35) in zona tensionada, or social housing
• 60% if substantial rehabilitation performed
• 50% base reduction (replaces 60% for new contracts post-2024)

Note: The traditional 60% reduction continues to apply to pre-existing contracts. For new contracts post-2024, the base reduction is 50% unless enhanced conditions are met.

2.6 Interest Expense Limitation

Interest on mortgage used to purchase/renovate the rental property is deductible, BUT:

• Interest + repair expenses CANNOT exceed rental income (they cannot generate a fiscal loss from these specific items)
• Excess interest/repair costs carry forward to subsequent years (5-year limit under Art. 23.1.a LIRPF)

2.7 Non-Resident Rental Income

2.8 Imputación de Rentas Inmobiliarias (Imputed Income)

For properties that are:

• Owned by the taxpayer
• NOT the taxpayer's primary residence (vivienda habitual)
• NOT rented out
• NOT used for business

Imputed income = valor catastral × 2% (or 1.1% if catastral value was revised in the last 10 years).

This is taxed at marginal rates as part of the general tax base. It applies to second homes, empty apartments, etc.

Section 3 -- Transaction Pattern Library

3.1 Income Patterns

3.2 Expense Patterns

3.3 Capital / Non-Deductible Patterns

Section 4 -- Computation Method

Step 1: Gross Rental Income (Rendimiento Íntegro)

Total rent received/receivable for the year.

Step 2: Deductible Expenses (Gastos Deducibles)

Sum all allowable expenses including depreciation (3% of construction).

Step 3: Net Rental Income (Rendimiento Neto)

Gross income − deductible expenses.

Step 4: Apply 60% Reduction (if applicable)

If vivienda habitual of tenant: Net × (1 − 60%) = reduced amount. E.g., Net income €10,000 → Reduced to €4,000 (only €4,000 taxed).

Step 5: Report on Modelo 100

Include in rendimientos del capital inmobiliario section. Taxed at marginal IRPF rates (general tax base, not savings base).

Section 5 -- Tourist Rental (Vivienda de Uso Turístico)

Section 6 -- Edge Cases

6.1 Partially Rented Year

Expenses are apportioned between rented period and vacant period. Imputed income applies to the vacant period (if not available for rent).

6.2 Below-Market Rent (e.g., to family)

If rented below market value, AEAT may impute income at market rate. Minimum imputed income = imputed income that would apply if empty (valor catastral × 2%/1.1%).

6.3 Co-Ownership (Proindiviso)

Each co-owner reports their share of income and expenses proportional to ownership percentage.

6.4 Rental at a Loss

Net rental losses are part of the general tax base and can offset other general income (employment, business). The 60% reduction does NOT apply to losses (only to positive net income).

6.5 Non-Resident with Multiple Properties

Each property requires a separate Modelo 210 filing. Imputed income also requires Modelo 210 for vacant properties.

Section 7 -- Prohibitions

• NEVER apply the 60% reduction to tourist/short-term rental
• NEVER apply the 60% reduction to a rental loss (only positive net income)
• NEVER allow non-EU non-residents to deduct expenses (24% on gross)
• NEVER depreciate the land component -- only construction value
• NEVER exceed the 3% depreciation rate for the property itself
• NEVER deduct mortgage principal as an expense
• NEVER ignore imputación de rentas for vacant non-primary properties
• NEVER present tax calculations as definitive -- always label as estimated

Disclaimer

This skill and its outputs are provided for informational and computational purposes only and do not constitute tax, legal, or financial advice. Open Accountants and its contributors accept no liability for any errors, omissions, or outcomes arising from the use of this skill. All outputs must be reviewed and signed off by a qualified professional (such as an asesor fiscal, gestor administrativo, or equivalent licensed practitioner in your jurisdiction) before filing or acting upon.

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Source: OpenAccountants — open tax Guides for AI, reviewed by named CPAs/CAs/EAs. Quality: source-cited draft. For always-current figures and named-accountant backing, connect the OpenAccountants MCP server (openaccountants-mcp).