When it comes to pay tax it can easily become a real hassle. We understand that living in a foreign country with a different language this process can be an even bigger conundrum. Therefore, we propose you to follow these 5 tips about real estate when doing your Income Tax Return in Spain established by ABC Inmobiliario to make things smoother.


 Income Tax Return in Spain
Photo by Steve Buissinne / Pixabay


Since April 2, the deadline for processing the drafts opened and will end on July 1. The figures related to housing, from the buyer and the seller, to the landlord and the tenant, must update their situation with the Tax office.

  1. If you rent a property as a tenant

If you signed a lease from 2015 you will not be able to deduct anything. The rents of usual residence into effect before that year can continue enjoying a state deduction of 10.05% on the total of the monthly payments contributed in a year, as long as the taxable base of the tenant is below 24,107.20 euros per year. However, some autonomous deductions continue to be effective, both for rental contracts before and after 2015.

  1. If you rent a property as a landlord

As a landlord you’re required to declare the rent of a property. The tax office is intensifying its vigilance over landlords, since much of this business is still managed on the fringes of the law. The owner must declare the income obtained, after subtracting all deductible expenses, from taxes such as the IBI to the insurance policy. If it is a habitual rented house, it is possible to apply a reduction of 60% on the net yield.

  1. If you rent a tourist property

The landlord must declare it, but clearly differentiating the period in which the house has been rented and the time in which it has been available to their owners. As in the previous case, you must verify the net return (gross income minus deductible expenses). Since it is a second home and not the usual one, you have to calculate the imputable income by applying a percentage of 1.1% or 2% of the cadastral value, depending on when the review was made.

  1. If you bought a house

Home buyers have not been able to apply the rebate for purchasing a habitual residence since 2013. You cannot deduct any transaction from that date. If you became owners before that year, you still have the opportunity to deduct 15% of the amounts contributed through the loan throughout the year, up to a maximum of 9,040 euros per year. If you bought the property and declared it as a couple, the returned amount would be doubled.

  1. If you sold a house

The sale of a house is exempt from paying the equity gain obtained only in the case that the aforementioned return is reinvested in the purchase of a new habitual residence within two years. When the seller is over 65 and allocates the profit to a life annuity, a 100% exemption is also applied. Also, if you purchased your property between May 12 and December 31, 2012 there is a 50% exemption.


As professionals in the sector we feel we ought to give the best advice as concern real estate. It is also the case if you decide to rent or purchase a property. If you have thought about being owner or tenant in Barcelona, visit our website http://www.chicroomproperties.com to find the adequate property.