Interesting topic. I might inherit a flat in Madrid one day and it is nice to know that it is tax-wise no fun to let to someone. I think wouldn’t want this anyway as I would neither want to deal with the renters nor pay someone to do it.
Hola,
New member here, Spanish (Madrid). I’m moving to Basel soon and I have some rentals in Spain.
There are not so many options to do tax planning around the non EU residents rules in Spain. The worst part is that we’re not getting the 60% reduction applicable to residents if the real estate is used as the principal residence of the tenant. Apart from that the tax rate applicable is 24% of the gross income (no deduction of the costs allowed). Last but not least, the EU commission has closed the infringement procedure against Spain regarding this matter.
Options? Not many if you have just one or two properties there. If more, you can start thinking of constituting a special type of company to rent out the properties or also use other figures like the bare ownership/usufruct…it depends on the personal situation of each one.
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