Whether you’re resident or non-resident in Spain and own property on the Costa del Sol as a private individual or through a company, if you let a property, landlords are liable to pay taxes on any income earned.
In February 2016, of a new law in Andalucia regulating holiday rentals, landlords must register their property to let with the regional tourism authority, both: short or long term rentals!
Furthermore there are fiscal implications of short-term letting a property on the Costa del Sol, most likely to holidaymakers, from the landlord’s point of view:
The general rule is that if you earn any income from a property you own and let in Spain, you are liable for taxation, although the kind of tax and how much you pay depends on where you reside for fiscal purposes and who (or what) you are.
There are 4 classifications of taxpayer in Spain: 1) a resident individual or 2) company and 3) a non-resident individual or 4) company.
Individual tax residents of Spain are required to declare any income they earn and pay tax under the Impuesto sobre la Renta de las Personas Físicas (IRPF, income tax), while companies that are resident in Spain are required to declare their revenues and pay tax under the Impuesto sobre Sociedades (corporate tax).
Individuals pay IRPF in line with a sliding scale levied on total earnings during a fiscal year, while companies generally pay corporate tax at a flat rate of 25% on any profits. For individuals and companies that are not resident in Spain, things get a little more complicated, as where you reside is also relevant. Both are required to pay the Impuesto sobre la Renta de No Residentes (IRNR), which is levied at different rates depending on if you reside within or outside the European Union. Tax residents of other EU member states are liable to pay IRNR at a flat rate of 19% on any income or profits earned in Spain, while residents of the rest of the world are required to pay IRNR at 24%.
Another big difference between tax residents and non-residents is how often you have to pay. Residents are required to declare income earned from letting property as part their annual IRPF tax return to the Agencia Tributaria (AKA Hacienda, Tax Agency) and settle any taxes due in June of the following year. Non-residents, on the other hand, have to pay on a quarterly basis, within a period of 20 calendar days after the end of the quarter.
With the exception of those resident outside of the EU, landlords are able to deduct costs arising from the maintenance of the property, although this does not include improvements; financial costs, such as interest on mortgages or loans used to buy the property, although not the capital; and any taxes, charges or other running costs, including the Impuesto sobre Bienes Inmuebles (IBI, property tax), refuse collection, insurance, community fees and depreciation, arising from the property that is being let.
Last but not least, is the Impuesto sobre el Valor Añadido (IVA, value-added tax or VAT), which is levied on goods delivered and services provided. In most cases, this is not applicable as property letting is exempt from IVA, meaning landlords in Spain are normally not required to charge IVA or declare it. If the tenant sublets the property to a third party, however, the original let is subject to IVA.
But if the property is let on a basis where services, such as daily cleaning, catering and the like, are provided, then IVA must be charged at the reduced rate of 10% and landlords are required to make quarterly IVA declarations and pay the corresponding tax on an annual or quarterly basis, in accordance with their fiscal residence status.
Ask your lawyer for further advises!
Source: Olive Press Spain
El Caminito del Rey (The King’s little pathway) is a walkway, pinned along the steep walls of a narrow canyon in El Chorro, near Ardales in the province of Malaga, Spain. The name is often shortened to Camino del Rey (English: King’s pathway). The walkway had fallen into disrepair and was partially closed for over a decade. After four years of extensive repairs and renovations, the walkway re-opened in 2015. It has been known in the past as the “world’s most dangerous walkway” following five deaths in 1999 and 2000.
The walkway was built to provide workers at the hydroelectric power plants at Chorro Falls and Gaitanejo Falls, on order to cross them, to provide for transport of materials, and to facilitate inspection and maintenance of the channel. The construction began in 1901 and was finished in 1905. King Alfonso XIII crossed the walkway in 1921 for the inauguration of the dam Conde del Guadalhorce and it became known by its present name. The walkway is 1 meter (3 ft) in width, and rises over 100 metres (330 ft) above the river below.
The original path was constructed of concrete and rested on steel rails supported by stanchions built at around 45 degrees into the rock face. It deteriorated over the years and there were numerous sections where parts or the entire concrete top had collapsed. The result was large open-air gaps bridged only by narrow steel beams or other supports. Few of the original handrails existed although a safety wire ran the length of the path. Several people lost their lives on the walkway and, after two fatal accidents in 1999 and 2000, the local government closed both entrances. Even so, in the 4 years to 2013, four people died attempting to climb the canyon.
The regional government of Andalusia and the local government of Málaga agreed in June 2011 to share costs of restoration (including car parking and a museum) of €9 million. The project took approximately three years to complete. Many of the original features remained in place.
In March 2014, the cornerstone of the rehabilitation project was laid by specialized alpinists. The walkway reopened on 29 March 2015 and was listed in the best new attractions for 2015 by Lonely Planet. Total length of the route is 7.7 km, divided into 4.8 km long access ways and 2.9 km long boardwalks. As for the boardwalks, the most famous part of the trail, 2.9 km of their length between the entrance to them and the exit point, comprises 1.5 km long boardwalks, and 1.4 km long paths or forest walkways. Estimated time for the full length of the route (this is the way that comprises the two boardwalks, and the paths and the forest walkways that serve as the entrance to the area or its exit) is between 3 and 4 hours. Visitors should mind the long distance and the steep slopes that are to be covered in order to access the boardwalks.
If you start your trip in Málaga City, take the A–357 motorway, and go towards MA-444, through the Municipalities of Cártama, Pizarra, Carratraca, and Ardales. This route is 59.1 km long, and it takes 50 minutes by car. In Pizarra, you can also go to Álora by motorway, and then along A-343 to the train station El Chorro. This route is a little bit longer – 60 km, and you will take a little more than one hour to get to your destination. The road is narrower and curvier than the previous one. There are coaches between the northern access (Ardales) and the southern one (El Chorro), which go in both directions. The tickets are available at a very reasonable price, depending on whether you have a transport card for the area of Málaga. Thanks to the coaches, visitors who come to El Caminito del Rey Path will be able to go back to the start point along the MA-444 road.
ATTENTION: The path El Caminito del Rey is linear not circular. This is why you need to make sure to come back to the start on your own. Nevertheless, there are coaches between the northern access (Ardales) and the southern one (El Chorro), which go in both directions. The tickets are available at a very reasonable price of € 0.94 or 1.5, depending on whether you have a transport card for the area of Málaga. Thanks to the coaches, visitors who come to El Caminito del Rey Path will be able to go back to the start point along the MA-444 road.
For more information and ticket reservations click here.
Marbella is not just a place; it is a lifestyle. Live in Marbella involves a high quality of life loved by the High Society.
First of all, the glamorous resort town offers the glitzy, high voltage social scene beloved of European Royals, Hollywood VIPs and the world’s sporting heroes. Beyond this, combined with the unique and very Spanish, relaxed lifestyle of outdoor living in a wonderful climate.
When looking for a town that has everything, Marbella appears at the top of many people’s wish list.
As well as the sparkling Mediterranean Sea with views across the coast to Gibraltar till Africa, it benefits from a modern infrastructure. You will find top class medical facilities and highly regarded international schools, designer shopping, a lively social scene and world-class cuisine. And last but no least, all within easy reach – wherever you live in this top of the list European towns.
In addition to this attractions, Marbella is easy to reach. A modern road network connects it to Málaga International Airport, with its direct connections to most European capitals and ongoing flights to the rest of the world. A little further away are the airports of Gibraltar, Jerez and Sevilla.
Best areas to live in Marbella
Marbella’s biggest asset is its 27 km stretch of sandy beaches. Luxury beach clubs offer high quality food, a relaxing daytime environment and energetic nightlife. You can choose within a great list of beach clubs within Marbella´s area:
Golf: One of the advantages to live in Marbella
Furthermore, golfers are getting spoilt here at Marbella, having the choice of playing some of the best courses in Europe. As a result, our property list includes many luxury frontline golf villas and apartments, overlooking lush fairways with sometimes even direct access to the golf course. The Sierra Blanca mountains shelter Marbella from the worst of the summer heat and winter cold. The warm Mediterranean provides a temperate climate with mild winters and warm spring and autumn seasons. With its superb microclimate, to live in Marbella offers an outdoor lifestyle all year round.
Check out our frontline golf properties in the area here.
Read more: http://turismo.marbella.es/en/discover-marbella/marbella