Rental income
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How are rental income declared?


bequeathed the moment of the 2018 Income Tax Return. Housing has a special role, especially if you have a flat for rent. We tell you how the rental income is declared in the IRPF What are considered real estate capital returns? Rustic or urban property from which a rental income is obtained, unless the lease is made as an economic activity (for which a contracted person must have).

What is there to declare?

In this section you must include the total income in the section of Real estate capital yields. To calculate the amount on which taxes are paid, deductible expenses are subtracted from the amount received and the benefit is obtained, which is what is paid.

Important. When the property that is rented is a house, of the total of the net performance for rent, 60% is exempt.

What can be deduced:

  • Annual depreciation of the property: 3% on the highest of these values: acquisition cost or cadastral value. Very important: the value of the land must be excluded.
  • Interest on the mortgage loan
  • Conservation and repair expenses. The expenses destined to the extension or improvement of the property are not deductible.
  • Taxes and fees:
  • Home insurance
  • Community expenses, surveillance, goal ...
  • Expenses derived from the formalization of the rental agreement
  • Note with the incomes pending collection if any.

House rented to a family

Hacienda says that, if it is up to third grade included, the computable yield must not be less than the amount resulting from: 2% of the cadastral value that corresponds to the property in each tax period. Or 1,1% of the cadastral value in case they have been revised or modified.

Tourist rental

The mechanism is similar to the previous one. But in this case, it is not exempt from the 60% foreseen for the rented dwellings and intended for habitual residence. Plus, the period in which the property has not been occupied, must be declared as imputed income.

In our collaboration on Invertia, apart from breaking down all the previous sections, you can see some example that can help you.

And if you need to solve more doubts, enter the 2018 Income Handbook in chapter 4º Real Estate Capital Returns.


More information of the sector in our Blog y Press Room

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