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Individual Income Tax (“IRS”)
Non-Residents TaxpayersRental Income
Rental income corresponds to the earnings from a property, such as lettings, sub-lettings.
Certain lettings costs may be deducted from the annual rental income and are listed below, along with some of the costs which are not deductible:
| Allowable for deduction*: | Not allowable for deduction: |
|---|---|
| Property Municipal Tax (“IMI”) | Gardening costs |
| Condominium charges | Utility Bills |
| Maintenance Expenses and repairs | Maid service |
| Building Insurance | Property Management Company fees |
Withholding tax will be applied if the annual rental income is more than 10.000 Euros and if paid by a company liable to Corporation Tax (e.g. Property management companies). However, this amount will then be deducted from the taxable amount.
The tax liability will be calculated as follows:
Annual Rental Income
- Annual Allowances
= Taxable Income
x 15%
= Taxable amount
- Withholding Tax
= Tax to be paid/refunded
