Last Updated on November 21, 2023 by Kristina Valcheva
It’s thrilling to find an overseas investment opportunity. However, dealing with the day-to-day responsibilities of managing your Spanish property can be complex.
When there is a language barrier and you are thousands of kilometers away, tasks like sorting bills and maintenance of your Spanish property might be challenging.
Add to that complicated rental laws and Spanish tax on rental income, and it’s easy to see why so many investors enlist the services of a dependable property management company in Spain.
In this blog, we’ve broken down everything a landlord needs to know about property management in Spain, and who can help you deal with your Spanish tax return / Form 210 obligation.
In this guide:
- What you need to know about renting a property in Spain
- Do I need a property management company in Spain?
- When should I hire a property management company in Spain?
- How to find the right property management company in Spain?
- How much are property management fees in Spain?
- Are property management fees tax deductible in Spain?
- How to manage a property in Spain from abroad on your own
- What happens if you don’t pay your non-resident Spanish property tax?
- Who can help me deal with my Spanish property taxes?
- Why is PTI Returns better than a local accountant?
What you need to know about renting a property in Spain
In the last few years, as a result of the property boom in Andalucía and Costa del Sol, many property owners prefer to rent out their property rather than leave it vacant.
If you have a rental property in Spain, you should be aware that there are a number of important rules you must follow.
Renting out a property in Spain without a tourism license is now forbidden. It makes no difference if you intend to rent for a few weeks or for a few months each year.
You must display your tourism license on any rental offers (online) because it is legally required. That being said, if you decide to use the services of a property management company in Spain, it should be fully compliant.
Usually, property management companies in Spain offer to obtain a tourism license for you. They could also advise you if your Spanish property meets the standard, or if it needs any modifications.
The property management company could even offer to arrange any work that is mandatory.
All Spanish rental properties with this license must have:
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- air conditioning in the living area and every bedroom
- a specified amount of clean linen
- a contact number for emergencies – 24 hours
- natural ventilation or forced ventilators in bathrooms
- operating manuals for every equipment
- first aid equipment
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You must also confirm guests’ identity documents and register them with the national police hotel service before giving them keys.
Do I need a property management company in Spain?
Property management companies can save you a lot of time.
Many homeowners want to rent their Spanish properties, while others prefer not to lease their private homes but worry about their real estate being empty while they are not in the country.
If you decide to rent it, you likely won’t be in Spain at the time. That’s why it makes sense to engage a property management company. Even people who live in Spain and own two or more properties prefer to delegate some or all of the maintenance to specialists.
Finding a tenant for your property can also be easier with the right property management service.
They will be in charge of keeping your real estate occupied by advertising it and screening potential renters. The property management company will also be in charge of keeping track of any maintenance, and utility bills.
They will take care of the administration and marketing of the property and can provide different types of services to give you peace of mind while you are away.
The property management company will also make efforts to keep your reviews and internet reputation clean which is very important.
If you decide to use the services of a property management company, you won’t have to spend your time in Spain worrying about problems like electrical outages, water damage, and bug infestations, because the property management company will regularly monitor your home and address any of these troubles.
This means that when you return to your Spanish property, you can relax, and enjoy the sunshine.
Read also:
Spanish property tax for non-residents
What’s the Spanish NIE number? And what is it needed for? The Ultimate Guide
Everything you need to know about mortgages in Spain for non-residents
When should I hire a property management company in Spain?
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- You have too many properties to manage on your own
- You do not live close to the Spanish property you own
- You are busy and you don’t have time
- If you are tired of spending your holiday cleaning and gardening
- You prefer making less money but someone else is taking care of the property maintenance and paperwork
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How to find the right property management company in Spain?
To find the right property management company in Spain, it’s always a good idea to get in touch with homeowners from the local neighborhood and ask them for suggestions. If you are checking in search engines, look for property management companies in Spain with top ratings and recommendations.
Then, make sure you have a list that shows what’s included in the property management fee.
These are the main services that should be included in your contract:
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- organizing maintenance, cleaning, laundry, and repairs of the real estate
- promoting the rental property and showing it to potential tenants, organizing bookings
- ensuring the property bills and property costs are paid on time, including local tax
- collecting the monthly rent and deposits
- property check-in/check-out procedures with an inventory
- garden/ pool maintenance
- maintaining the online reputation and reviews
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Remember that not all property management companies in Spain organize rentals, and not all rental agents become involved in property management. However, some of them may offer to handle both.
Most property management companies do not offer property tax services as well. But you will need to deal with your tax filing obligation in Spain even if your property is not rented out.
However, you can delegate the property tax paperwork to a certified tax agent like Property Tax International.
Our tax advisors can help you file your Spanish property tax returns, claim your eligible property expenses, and save on property taxes.
How much are property management fees in Spain?
The property management company’s services are less expensive in Spain than anywhere else in Europe.
They often charge 10% to 15% of the rental price for long and short-term rentals, and this commission includes house upkeep. The typical average fee is around 10%. If you want to keep your house unoccupied while you are abroad, there may be a fixed maintenance fee of 300 to 2,000 euros per year, depending on the size of the property.
If the real estate is going to be vacant for a long time, hiring a cleaning company for its maintenance is always a good idea. We would also recommend home insurance that covers any theft or accident.
Are property management fees tax deductible in Spain?
Yes. The good news is that property management fees are tax deductible in Spain for EU citizens, and you can claim them on your income tax return (Form 210).
How to manage a property in Spain from abroad on your own
Here are some suggestions to keep in mind when you want to manage your Spanish property from abroad:
Advertising
To find potential tenants, you can use sites like Booking.com or AirBnb.com but just be aware that this comes at a cost. Creating a website for your property can be very useful because your tenants will be able to make reservations without an intermediary and you will avoid additional costs.
However, this can be time-consuming, and may not reach the attention of your desired audience. There are also direct sites where you can provide images and text advertising your Spanish property and location for an annual fee (maybe approximately £180 – per year), and then take bookings yourself.
A social media presence that’s updated regularly could also be useful to find guests for your overseas property.
Although you may believe that dealing with marketing and renting out your Spanish house yourself will save you money, consider the time you will need to spend setting up and running the rentals, as well as the potential complications that may arise.
Welcoming your renters
Create a welcome manual with house rules and important information for your guests. You can include historical info and also recommendations for local attractions, historical info, entertainment, and restaurants.
You can also leave a phone number if your guests have any questions. As far as keys are concerned, if you prefer a more modern approach, you can install a keypad at the front door and guests will be able to lock and clock the door using a code.
You will be able to change the code remotely and you will be notified if someone forgets to lock the door.
Maintenance and cleaning
We would recommend that you get the help of a local professional cleaning service that will make sure your rental Spanish property is fully cleaned between guests.
You might need the details of other cleaners if someone cancels at the last minute. As far as the rest of the maintenance is concerned, you can hire a catch-all person who will be in charge of pest control, gardening, and decorating.
This will be the cheapest option, just make sure you have a backup who can cover during sickness and holidays.
Paying taxes
If you are a non-resident and you rent your Spanish property, you will need to pay Spanish tax on rental income. That’s why you will have to file a Spanish tax return (Form 210) and one in your home country.
This tax, known as the “Rental Tax,” must be paid on the 20th of January, April, July, and October of each year, but only in the quarter in which you have rental income in Spain. The income tax return should be submitted to the tax office in Spain.
The good news is that you can deduct some of the property expenses, and reduce your taxes.
For example:
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- The cost of preparing your real estate for rent
- Property management fees
- Maintenance and improvement costs
- Mortgage Interest (excluding capital element which is not allowable)
- Bank charges
- Local rates
- Property management fees
- Letting agent fees
- Insurance payments
- Running costs
- Cleaning
- Maintenance and improvement costs
- Building and Furniture depreciation /Capital allowances
- etc
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What happens if I don’t pay Spanish property taxes for non-residents?
A lot of non-resident landlords are not aware of their property tax requirements. If you don’t pay your non-resident property tax, you risk paying an additional fee that ranges from 50% to 100% of the amount you failed to declare. If this happens, you:
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- may have your bank account could be blocked
- won’t be able to sell or transfer the property to a new owner
- might be caught in the Spanish tax authorities’ anti-tax fraud initiatives
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Who can help me deal with my Spanish property taxes?
Of course, dealing with tax papers in a foreign country can be stressful and you will need a property tax specialist in Spain.
A certified tax advisor like Property Tax International (PTI Returns) will communicate with the local tax authorities, prepare your Spanish property tax return, and claim all the allowable expenses to lower your tax bill.
We have specialized in international property tax returns services and we are ensuring our clients are compliant in each of the relevant tax jurisdictions!
Why is PTI Returns better than a local accountant?
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- Better value – we offer a more affordable service than your local accountant
- Peace of mind – PTI Returns is part of We have more than 25 years of experience in international tax, and we will keep you compliant with the Spanish tax authorities
- Convenient service – easy online service
- No language barrier – Our tax experts will deal with language barriers and with the local Spanish tax office
Local knowledge – we have offices all over the world. We have in-depth knowledge in every country, including Spain, and we can help you to maximize your investment profit potential
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You cannot avoid property taxes but you can save time, stress, and money with our help.
We are here to serve you.
Contact Property Tax International today for a free no-obligation consultation