Rental income tax calculator
How much income tax (IRPF) you pay for letting a flat in Spain: the rent you collect minus deductible costs, depreciation and mortgage interest, with the residential letting reduction and your income tax rate.
How much income tax does your rental pay?
General 2026 income tax scale (state plus average regional part). It works out what the rental adds to your tax return.
- Expenses€1,50014%
- Mortgage interest€2,50023%
- Income tax€4594%
- You keep€6,34159%
| Rent collected (12 months) | €10,800 |
| Mortgage interest | − €2,500 |
| Yearly costs | − €1,500 |
| Depreciation of the flat (3% of the building) | − €3,240 |
| Depreciation of the furniture (10%) | − €500 |
| Net income | €3,060 |
| 50% reduction | − €1,530 |
| Taxable amount | €1,530 |
| Income tax on the rent (marginal rate 30%) | €459 |
With the general 2026 scale; each region changes it by a few points. Interest and repairs together cannot exceed the rent collected in the year.
Indicative estimate. Not financial or tax advice.
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.
How rental income is taxed in Spain
What you earn by letting a home is income from property and is added to your general income tax base, the same as your salary. That is why it does not pay a fixed rate: it pays at your marginal rate, from 19% to 47%.
You declare what you keep: the rent collected minus deductible costs and depreciation. If the flat is the tenant's main home, it also gets a reduction.
Costs you can deduct
Mortgage interest and its costs; property tax (IBI), the rubbish charge and service charges; insurance (home, rent guarantee); repairs and upkeep; utilities if you pay them; agency fees and depreciation.
Interest and repairs together cannot exceed what you collect in the year; anything left over is deducted over the following four years. Improvements (a new kitchen, a refurbishment that adds value) are not a cost of the year: they are depreciated.
Depreciation: the cost you do not pay
Each year you can deduct 3% of the building value (what the flat cost you with its costs, without the land) and 10% of the furniture. It does not come out of your pocket, but it lowers your income tax. The building share is on the IBI bill: cadastral value of the building ÷ total cadastral value.
When you sell, the depreciation is subtracted from the purchase value and increases the taxable gain: work it out.
The residential letting reduction
If the flat is the tenant's main home, positive net income gets a reduction (Housing Law 12/2023, for contracts from 26 May 2023): 50% in general; 60% if you have done renovation work in the previous two years; 70% if you let for the first time in a high-demand area to a young person aged 18 to 35, or it is protected or affordable housing; 90% if in a high-demand area you sign a new contract with rent more than 5% below the previous one.
Contracts signed before 26 May 2023 keep the 60%. Holiday and seasonal lets get no reduction.
What this calculator does not do
It uses the general scale with the average regional part: your region can change the result by a few points. It does not include the mortgage payment or the cash flow either. For everything together (purchase, mortgage, income tax year by year and the IRR), use the rental yield calculator.
Reviewed on 10 October 2026
Frequently asked questions
How much income tax do you pay for letting a flat in Spain?
It depends on what is left after costs and on your other income: net income, after its reduction, is added to your salary and taxed at your marginal rate (from 19% to 47%). With the 50% reduction, costs and depreciation, it is often much less than people think: enter your figures above.
What costs can be deducted from rental income?
Mortgage interest and costs, property tax, service charges, insurance, repairs and upkeep, utilities you pay, agency fees and the depreciation of the flat and the furniture.
How is the depreciation of a let flat calculated?
3% a year of the building value, without the land (the higher of what it cost you, with costs, and the cadastral value of the building). Furniture, 10% a year.
What reduction does residential letting get in 2026?
50% in general, and 60%, 70% or 90% in specific cases (renovation work, young tenants or lower rent in high-demand areas). Contracts signed before 26 May 2023 keep the 60%.
Do seasonal or holiday lets get the reduction?
No: the reduction is only for lets that are the tenant's main home. Work out a seasonal let.
Indicative estimate. Not financial or tax advice.