FAQ: Spain rental property taxes and yield 2026
How is rental yield calculated in Spain for 2026?
Rental yield is calculated by taking the annual rental income, subtracting all operational expenses (IBI, community fees, insurance, and maintenance), and dividing the result by the total investment. The total investment includes the property price plus acquisition costs like ITP (Transfer Tax) or IVA/AJD (for new builds) and notary fees.
What are the main property taxes for landlords in Spain?
Landlords are subject to two main types of taxes: ITP/AJD, paid upon purchase and ranging roughly from 4% to 11% depending on the region (for example Madrid, Valencia, or Andalusia), and IRPF/IRNR, income tax on rental profits. Residents pay IRPF with progressive rates, while non-residents pay IRNR at 19% for EU/EEA residents and 24% for non-EU citizens.
Can I deduct expenses from my rental income in Spain?
Yes. If you are a tax resident in Spain or an EU/EEA resident, you can typically deduct expenses such as community fees, property tax (IBI), insurance, and maintenance costs from your gross rental income before calculating tax.