The problem for you if you wish to let your Spanish property is that being properly registered can be an expensive process. If you are resident in Spain then you will have to become Spanish tax resident and register your letting business. This will involve inevitably the help of a lawyer (abogado) or tax consultant (asesor fiscal) and result in:
· A possible formal inspection of the premises to be let. This may mean that you have to expend money to ensure that your premises comply with all relevant Spanish Health and Safety requirements.
· Registration as a business. Most likely you will be advised to become autónomo (self-employed). This will mean that you will have to:
o Pay monthly social security contributions which may amount to at least 250 -300 Euros.
o Deliver proper invoices.
o Account for IVA (VAT) either monthly or quarterly
o Pay your lawyer or Spanish tax consultant’s fees.
o Obtain public liability insurance.
Note that in reality a properly registered rentals business in Spain is barely financially viable unless the net profit from the rental of your Spanish property exceeds some 350 + Euros a month.
Take care of renting your property illegally – the Spanish authorities will impose heavy sanctions upon you if they find out...1
· A possible formal inspection of the premises to be let. This may mean that you have to expend money to ensure that your premises comply with all relevant Spanish Health and Safety requirements.
· Registration as a business. Most likely you will be advised to become autónomo (self-employed). This will mean that you will have to:
o Pay monthly social security contributions which may amount to at least 250 -300 Euros.
o Deliver proper invoices.
o Account for IVA (VAT) either monthly or quarterly
o Pay your lawyer or Spanish tax consultant’s fees.
o Obtain public liability insurance.
Note that in reality a properly registered rentals business in Spain is barely financially viable unless the net profit from the rental of your Spanish property exceeds some 350 + Euros a month.
Take care of renting your property illegally – the Spanish authorities will impose heavy sanctions upon you if they find out...1
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