Results 1 to 3 of 3

Thread: Tax on long term rented property

  1. #1

    Tax on long term rented property

    Hi. Am thinking to down size for financial reasons and rent my property out for long let. Can anyone tell me how much tax I will have to pay on the earnings and also if expenses are deducted pre tax like the UK on such things as community, basura, IBI, insurance, maintenance and wear and tear. then I will decide if it`s worth it or not. Thanks very much.

  2. #2

    Re: Tax on long term rented property

    Hi Donna, I have been doing long lets for a year now and havn't done the tax return yet ... but I met with my accountant before I started to ask a few questions. As I understand, expenses are deducted before tax.. as well as those you mentioned, interest on a mortgage can also be deducted. Tax is charged at whatever your normal income tax rate would be. You do not need to charge IGIC. I also believe that if you are renting to someone under the age of 35 you get a 40% reduction on your tax due ... but you would ned to check that.

  3. #3
    Super Tenerifian doreen's Avatar

    Join Date
    May 2011
    Gender:
    Location
    Adeje
    Posts
    1,618

    Re: Tax on long term rented property

    DF, presuming you are a tax resident in Spain ... if yes, then all expenses you mention are deductible and I believe there there is a further 50% reduction in tax due as you are renting the property out as a dwelling, not to a business.

    EDIT - Foz beat me to it ... I understand the 40% reduction is applied after the lower tax rate, so having a tenant under 35 would mean very little tax !

Similar Threads

  1. Property Problems with newly rented restaurant
    By Handy Sevy in forum Property & Acommodation Information in Tenerife
    Replies: 45
    Last Post: 03-03-2013, 01:49
  2. Wanted Property for long term let that allows a small dog
    By kazziedee in forum Holiday rentals in Tenerife
    Replies: 4
    Last Post: 06-08-2012, 21:37
  3. Need some advice on rented apaprtment
    By manuchao in forum Property & Acommodation Information in Tenerife
    Replies: 4
    Last Post: 08-05-2012, 12:11
  4. Wanted Long Term Lets?
    By cjd01 in forum Long lets in Tenerife
    Replies: 3
    Last Post: 18-04-2012, 14:10
  5. Long Term Let Reguired
    By Flopsy in forum Apartment Owners in Tenerife
    Replies: 0
    Last Post: 26-01-2012, 12:24

Tags for this Thread

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  

POSTS ON TENERIFE FORUM ARE NOT ACTIVELY MONITORED

Please click the "Report Post" button under any post which may breach our terms of use.