Taxation of rental income for Polish homeowners in Spain

News/Yesterday

Polish citizens are increasingly owning homes in Spain. Many buy properties as vacation homes, often renting them out to tourists or long-term renters at certain times of the year. For many, this provides a valuable source of additional income. However, as most homeowners know, this income is subject to taxation.

As a result, our Polish clients often ask about the tax consequences of rental income when they are not residents of Spain.

The key question is: where should this tax be paid? Should it be in Poland, in Spain, or even in both countries? In this article, we will explain the tax obligations of non-resident owners who rent their home in Spain.

Keep in mind that Spanish taxes can be complicated, and failure to meet deadlines or file incorrect tax returns can result in financial penalties or fines. To ensure compliance and avoid potential legal problems, we strongly recommend seeking professional tax advice from a Spanish tax expert.

Spanish tax on rental income

First of all, it is important to know that you have to pay tax on rental income in Spain, even if you are not a resident. The Spanish tax authority collects taxes on rental income every year. This is declared on an annual form, submitted between January 1 and January 20 of the following year. This means that all income earned from rents throughout 2025 will be declared in January 2026.

Deductible expenses

There are allowances for certain expenses; these include a pro-rata share of home insurance, IBI, community fee, property repairs, cleaning, property management fees, and water and electricity if paid by the homeowner. You can even claim mortgage interest and attorney's fees for filing your tax return.

When you rent out your property and pay tax on income, adjustments are made to the calculation in accordance with the regular tax for non-residents. The amount of this tax is then based solely on the number of days the property was not occupied by tenants.

It is important to remember that you can only claim expenses from rental income if you are a resident of the EU, Norway or Iceland.

Tax rates on rental income in Spain

The income tax rate on rent in Spain depends on the country of tax residence:

19% for those non-residents who are tax residents in a country belonging to the European Union, Norway and Iceland,
24% for tax residents outside these areas.

Where should this tax be paid?

A common concern for Polish property owners is whether they have to pay income tax on rent in Poland, Spain or both countries.

The amount of Spanish tax paid by non-residents depends on the country of tax residence, not citizenship.

Spain requires non-residents to declare and pay tax on rental income earned in Spain.
Poland may also impose a tax on worldwide income, including foreign rental income.

To avoid double taxation, Poland and Spain have entered into a Double Taxation Agreement (DTA), which determines where tax must be paid and whether any tax credits or deductions apply, ensuring that the same income is not taxed twice.

Rent your home without worrying

Renting property in Spain is a good option for many Polish homeowners. Not only does it provide a good source of steady income, but it also helps you maintain your home while abroad. However, you need to make sure that you are prepared for the tax consequences.

Otherwise, you could be exposed to fines or interest from the Spanish tax authority. To make sure you are fully compliant, seek advice from an independent tax advisor.