Spain Rental Income Tax Guide 2026 — Residential & Tourist Rentals, Airbnb

Overview — Rental Income in the IRPF

Rental income (rendimientos del capital inmobiliario) from Spanish property is taxed as part of the general tax base (base imponible general) in the IRPF, at the progressive rates (19-47%). Key concepts:

• Gross rental income: Total rent received, including amounts paid by the tenant for utilities if the landlord's obligation.
• Deductible expenses: Certain expenses directly related to the rental property reduce gross income to net income.
• Reductions: Special percentage reductions apply to net positive income, such as 60% for long-term residential rentals.
• Integration: Reduced net income is added to other general income and taxed at progressive rates.

Residential Long-Term Rentals

Long-term residential leases (arrendamiento para uso de vivienda habitual) receive the most favourable treatment:

• Net income calculation: Gross rent minus deductible expenses = net income. If positive, qualifies for reduction. Losses can offset other rental income or carry forward.
• 60% reduction (Reducción del Rendimiento Neto): Net positive rental income from long-term residential leases is reduced by 60%. For example, if net income is €10,000, only €4,000 is taxable. Effective tax rate for a taxpayer in the 37% bracket is ~14.8%.
• Eligibility: Applies to the taxpayer's own urban property used as tenant's habitual residence (vivienda habitual). Does not apply to tourist rentals, commercial premises, or offices. The contract must comply with the LAU.
• Additional reduction for affordable housing: An additional 30% (on top of 60%) applies if the property is rented under public housing schemes or below affordable thresholds.

Deductible Expenses

• IBI (Impuesto sobre Bienes Inmuebles): Annual property tax, typically 0.4-1.1% of valor catastral, fully deductible.
• Comunidad de Propietarios: Homeowners' association fees, fully deductible.
• Mortgage interest: Interest on the mortgage for acquiring or improving the property. Deductible up to rental income amount (excess carried forward). Principal repayment is not deductible.
• Repairs and maintenance (Conservación y Reparación): Maintaining the property in habitable condition — plumbing, painting, appliance repair, pest control. Improvements are not deductible (added to cost basis).
• Management and administration fees: Real estate agent, gestoría, property manager fees, Airbnb service fees, legal fees for contracts.
• Insurance premiums: Home insurance, landlord insurance (impago de alquiler), and liability insurance.
• Utilities: Water, electricity, gas, internet paid by landlord and consumed by tenant (not separately billed).
• Depreciation (Amortización): Building value at 3% per year on the higher of construction cost (excluding land) or cadastral building value. Land is not depreciable.
• Other expenses: Legal fees, notary fees for contracts, costs of unpaid rent proceedings, and expenses during vacancy periods.

Tourist and Short-Term Rentals (Airbnb)

• No 60% reduction: The 60% reduction does NOT apply. Full net rental income is taxed at progressive rates (19-47%).
• Deductible expenses: Same categories as residential rentals, but AEAT scrutinises expense attribution more closely.
• Registration requirements: Must register with the regional tourism authority. Registration number must appear in all advertisements. Fines of €3,000-€15,000 for non-compliance.
• Tourist tax: Several regions impose daily taxes: Catalonia €1.65-€3.30/night, Balearic Islands €1.10-€5.50/night, Aragon €0.50/night. Collected by platforms or hosts and remitted regionally.
• Local limits: Barcelona (max 90 days/year), Madrid, Valencia, Palma, and others impose restrictions on short-term rentals. Fines of €5,000-€60,000 for violations.

Imputed Income (Imputación de Rentas Inmobiliarias)

Owners of urban property NOT rented and NOT the primary residence must include imputed income:

• Rate: 2% of cadastral value (1.1% if revised within 10 years).
• Example: Second home with cadastral value of €150,000 generates imputed income of €3,000/year (2%), taxed at marginal rate.
• Exemptions: Primary residence, rented property, property under construction, economic activity property, usufruct property.

Non-Resident Rental Taxation (IRNR)

• EU/EEA residents: 19% on net income (after deductible expenses). Must file quarterly (modelo 210) within 20 days of quarter-end.
• Non-EU/EEA residents: 24% on gross income — no deductions allowed. Quarterly filing via modelo 210.
• Withholding: If tenant is a company/professional: 19% (EU/EEA) or 24% (non-EU/EEA) withholding. If tenant is an individual, no withholding needed.

Frequently Asked Questions

Can I deduct the cost of a new kitchen in my rental property?

No. A new kitchen is considered an improvement (mejora) that increases the property's value, not a repair. The cost is added to the property's acquisition cost basis for capital gains purposes, not deducted as an expense in the current year. Minor repairs (e.g., fixing a leaky faucet, painting a room) are deductible as conservation and repair expenses.

How do I report rental income if I own the property jointly with my spouse?

If the property is owned jointly (bienes gananciales or proindiviso), the rental income and expenses must be split between the co-owners in proportion to their ownership share. Each co-owner reports their share in their individual IRPF return. If you are married and file jointly (declaración conjunta), you can combine the rental income, but the 60% reduction applies to the total net income from the residential rental.

Do I need to register as an autónomo to rent out property on Airbnb?

If you rent one or two properties occasionally, you are generally not required to register as an autónomo — the rental income is taxed as rendimientos del capital inmobiliario (property income), not as economic activity income. However, if you rent multiple properties professionally (e.g., more than 3-4 properties, with active management, marketing, and services), the AEAT may classify the activity as a professional economic activity, requiring you to register as an autónomo, charge IVA on your services, and file quarterly tax returns.

What is the plusvalía municipal when selling a rental property?

The plusvalía municipal (Impuesto sobre el Incremento de Valor de los Terrenos de Naturaleza Urbana — IIVTNU) is a municipal tax on the increase in land value when urban property is sold. The tax is calculated on the difference between the cadastral land value at acquisition and at sale, multiplied by a coefficient set by the municipality (typically 2-4% per year of ownership, capped at 20 years). The seller is responsible for paying this tax. The amount is deductible as a selling expense in the IRPF capital gains calculation.

Can I offset losses from one rental property against income from another?

Yes. Rental income from all properties is aggregated — losses from one property can offset gains from another to arrive at a single net rental income figure for the tax year. If the overall net rental income is negative (total losses exceed total gains), the loss can be offset against other general income (e.g., employment income) up to certain limits (25% of the positive general income base), and any excess can be carried forward for 4 years.

Disclaimer

This guide is for informational purposes only and does not constitute legal or tax advice. Rental income tax rules depend on the type of rental, the property's location, and the landlord's personal circumstances. Consult a qualified asesor fiscal for advice tailored to your situation. The information reflects the rules applicable in 2026 as of the date of publication.