Tax on Spanish Rental Income

Irish residents with Spanish rental property must make two income tax returns one in Spain and one in Ireland

Tax Residency

You are considered tax resident in Ireland if you spend at least 183 days here per year or 280 days over a two year period.

As an Irish tax resident and Irish domiciled person you are liable to tax on your worldwide income and gains. Therefore, if you own and rent a property in a foreign country you are liable to Irish income tax on the rents you receive and Irish capital gains tax on the gain if you decide to sell the property.

In other words, as an Irish resident, no matter where your property is situated, if you receive rental income or you make a gain on the sale of your property – you are always assessable to tax in Ireland.

Non resident landlords in Spain pay income tax at the current rate on gross income, Unlike Ireland there is no deductions for expenses or allowable interest.

In Ireland the landlord files an income tax return as normal taking the Spanish rental income and deducting allowable expenses. We can then take a credit of the tax paid in Spain.

Losses on foreign rental income can only be carried forward against future profits, Not used against Irish income.

For further information please do not hesitate to contact us on or 01-4800531

Allowable expenses against rental income

Rental Income

When preparing tax returns I often have to remind my cli

ents that they may not be claiming for all allowable expenses against their rental income.

I have  prepared a checklist which may assist landlords in ensuring they are claiming for everything they should. Remember all expenses should be wholly and exclusively for the business purpose and not of a capital nature.

  • Accountants Fees (For preparing rental accounts)
  • Advertising fees for advertising the property. (Invoice from Daft or a local newspaper)
  • Rates and levies (Water rates are often missed)
  • Repairs (These should not be of a capital nature)
  • Refuse charges
  • Insurance on the property
  • Management fee’s (Example the actual cost of collecting the rent)
  • Services paid for by the landlord (Examples: Gas, Electricity ect)
  • Wear and tear on fixtures and fittings (Example: Carpet, cooker, central heating)
  • Maintenance Costs (Landlord can not charge for her own time so its worth while paying someone to cut the grass or clean the apartment in between tenants!)
  • Interest paid on loans to purchase, repair or improve the property. (75% allowable, Everyone claims for their mortgage interest but a lot of landlords forget to claim for the interest on loans the may have on repairing the property)
  • Legal fees to cover the drawing up of leases or the issue of solicitors letters to tenants who default on payment of rent.
  • Certain mortgage protection policy premiums with

This list is obviously not conclusive.

If you would like one of our Tax experts to prepare your rental income tax return from as little as €195 please contact us now on 01-4800531

Rental Income