Rental income tax

Depreciation calculator for a rented flat

What you can deduct each year in your Spanish tax return for wear on the flat you let (3% of the building part, improvements and 10% of the furniture) and the income tax you save.

DepreciationThe same calculation as the website

How much depreciation can you deduct?

The tax office lets you deduct each year 3% of the higher of what the flat cost you and its cadastral value, excluding the land.

€150,000
€15,000
€0
€70,000
60%
€5,000
12 months
Your income tax rate (the highest you pay)
Housing rental reduction
Deductible depreciation
€3,470
About €289 a month
What is depreciated at 3%
€99,000
Building and improvements, without the land
Income tax you save
€521
At your 30% rate with the 50% reduction
What you depreciate this year: €3,470
  • Flat€2,97086%
  • Furniture€50014%
Calculation breakdown
What it cost you (price and costs)€165,000
Total cadastral value€70,000
The higher is used: what it cost you€165,000
Building share (60%)€99,000
Depreciation of the flat (3%)€2,970
Furniture (10%)€500
Deductible depreciation€3,470
Income tax you save (approx.)€521

A guide only. If you inherited the flat or were given it, what it cost you is the value you declared for the tax plus costs. Only the days it was let count. With the housing rental reduction, the saving is smaller because less is taxed.

Indicative estimate. Not financial or tax advice.

Carry on with the website

Next: the full study of your flat

What a full study looks like

The analysis of a flat from start to finish: detailed taxes, a 10-year projection, sale scenarios, sensitivity and the IRR. With these figures:

IRR over 10 years
11.5%
Monthly cash flow
€169
Net yield
5.3%

The full calculator

Your flat with everything: the transfer tax of your region, the mortgage, costs, empty months and income tax. Free and without signing up: the verdict, cash flow and return.

Find flats that already pay

Draw a circle on the map and we rank the flats for sale in the area by return, with the estimated rent of each one based on the rents around it.

What depreciation of a rented flat is

The Spanish tax office accepts that a flat wears out over the years and lets you deduct that wear from the rent you collect. It is a cost you do not pay each year, but it lowers your income tax, and it is one of the most often forgotten in tax returns.

How it is calculated

3% each year of the higher of two values: what the flat cost you (the price plus purchase costs and taxes) or its cadastral value. In both cases without the land: only the building part, which comes from the IBI bill (building cadastral value ÷ total cadastral value).

Improvements (works that increase the value or life of the flat, not repairs) are also depreciated at 3%, and furniture and appliances at 10% a year. If the flat was only let for part of the year, only that part counts.

An example

A €150,000 flat with €15,000 of purchase costs, a cadastral value of €70,000 with 60% building share and €5,000 of furniture: depreciation is €3,470 a year (€2,970 for the flat). With an income tax rate of 30% and the 50% reduction, you save about €521 a year.

Where it goes in the tax return

In the section on income from real estate for each rented flat, in the boxes for depreciation of the property and of the furniture. To see your full rental income tax, use the income tax calculator.

And when you sell

Depreciation is subtracted from the purchase value when you sell, so the taxable gain is larger. And it is subtracted even if you did not deduct it: the depreciation you were entitled to counts. That is why it is always worth deducting. Work out the tax when selling.

Reviewed on 10 October 2026

Frequently asked questions

How much is a rented flat depreciated each year?

3% of the building part of the higher of what it cost you and its cadastral value. In the example above, €2,970 a year for the flat.

How do I find the building share?

On the IBI bill or the Cadastre's online office: divide the building cadastral value by the total cadastral value.

Is furniture depreciated?

Yes: 10% a year of what you paid for it, while it is in the rented flat.

What if I inherited the flat?

What it cost you is the value you declared for inheritance (or gift) tax plus the costs and taxes you paid. 3% of the building part of that value or of the cadastral value, whichever is higher, is depreciated.

What if I did not deduct it?

You can ask for the returns of the last four years to be corrected. And when you sell, the tax office subtracts it from the purchase value anyway.

Indicative estimate. Not financial or tax advice.