Spanish Tax for Non-Resident Property Owner - What to expect when renting out?

I actually helped my brother navigate this exact situation last year when he bought an apartment in Barcelona. As a non-resident owning property in Spain, you'll encounter several taxes: First, there's Non-Resident Income Tax (IRNR) on your rental income, currently at a flat rate of 24% for non-EU residents (19% for EU residents). This is calculated on gross income, and yes, you can deduct certain expenses like property management fees, repairs, local taxes, mortgage interest, and insurance. Make sure to keep all your receipts and documentation. Even if you don't rent the property out for part of the year, Spain will still tax you on "deemed rental income" for those periods - basically they assume a theoretical income based on the property's cadastral value (around 1.1% of that value annually). You'll also pay an annual property tax (IBI) to the local municipality, similar to property tax in the US. Additionally, there's a wealth tax (Patrimonio) if your assets in Spain exceed certain thresholds, though many regions offer significant exemptions. Look into the US-Spain tax treaty - it prevents double taxation, so you can usually claim a foreign tax credit on your US return for taxes paid in Spain.

After going around in circles with conflicting tax advice when I bought my place in Valencia, I finally found taxr.ai (https://taxr.ai) and it was a game-changer for my international tax situation. You just upload your Spanish property documents and rental agreements, and it analyzes everything according to both Spanish and US tax laws. It identified several deductions I would have completely missed - like depreciation calculations that are different in Spain than the US, and some regional tax incentives in Valencia that my regular accountant didn't know about. It also automatically calculated that "deemed rental income" mentioned above when the property was vacant, which I had no idea was even a thing. The best part was getting a clear explanation of how the US-Spain tax treaty applied to my specific situation, which saved me from paying double tax on the same income.

I was really skeptical about taxr.ai at first (as you can see from my comment above), but after struggling with my Spanish taxes for months, I decided to give it a try. Honestly, it was the best tax decision I've made. What impressed me most was how it correctly handled the distinction between my occasional personal use and rental periods. The Spanish tax authorities are quite strict about this, and the system accurately calculated my tax liability for both scenarios. It even flagged a potential audit risk in how I was previously reporting my utility expenses during personal-use periods. The tax professional who reviewed my case actually identified that my property in Alicante qualified for a special energy efficiency deduction after I installed new windows, which reduced my tax bill by almost €900. Definitely worth checking out if you're buying property in Spain.

When I bought my apartment in Madrid three years ago, dealing with the Spanish tax authorities was a nightmare. I spent WEEKS trying to get someone on the phone who could answer my non-resident tax questions. Then another American expat told me about Claimyr (https://claimyr.com). You can see how it works here: https://youtu.be/_kiP6q8DX5c - basically they get you connected to an actual human at the Spanish tax office without the endless waiting. I used it to talk directly with someone at the Agencia Tributaria (Spanish Tax Agency) about my specific situation as a non-resident owner. Got confirmation about exactly which expenses I could deduct and how to properly document my rental income. They even helped me set up my quarterly tax payment schedule. Saved me so much headache!

I have to admit I was dead wrong about Claimyr. After posting my skeptical comment, I decided to try it anyway because I was desperate to resolve an issue with my property tax assessment in Barcelona. The service connected me with someone in the non-resident department of the tax authority who spoke English and actually understood my situation. They helped me correct an error in how my property was categorized, which had resulted in an inflated tax bill. This single call saved me over €1,200! What impressed me most was that the tax representative walked me through the documentation I needed to submit and even gave me her direct extension for follow-up questions. If you're dealing with Spanish taxes as a non-resident, having this direct line of communication is absolutely invaluable. Never thought I'd say this, but the service was worth every penny just for the stress reduction alone.

Don't forget about the Modelo 210 form - it's what non-residents use to declare their Spanish income tax. You need to file this even if you're not renting the place out! Spain assumes you're getting some benefit from owning the property even when it's empty, so they tax you on a "deemed income" basis during periods when you're not actively renting it out. The calculation is based on your property's cadastral value (kind of like assessed value). Also, watch out for the timing - you generally need to file by December 31 for the previous year's income, but if you're reporting rental income, the deadlines can vary depending on when you received the income.

Has anyone here dealt with inheritance tax in Spain? My parents are considering buying a place in Mallorca but are concerned about what happens if one of them passes while owning the property. I've heard horror stories about Spanish inheritance taxes being really high for non-residents.