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Many foreign property owners buy a home in Spain and, over time, return to their country of residence. At that point, a common question arises: can I rent out my home even if I no longer live in Spain?
The answer is yes, but it is important to clearly understand the regulations, the type of rental agreement you can sign and the tax obligations involved. At Fotocasa, we review what you need to consider if you want to rent out your property in Spain while living abroad.
Yes. Living outside Spain does not prevent you from renting out a property located in Spanish territory.
What is mandatory, however, is to comply with the applicable regulations.
These are the main laws you should be aware of if you are considering putting your property up for rent:
Urban Leases Act (Ley de Arrendamientos Urbanos – LAU): regulates residential rental agreements, temporary rentals, tourist rentals and rent-to-own contracts.
Housing Act (Law 12/2023): introduces new measures such as rent regulation in certain high-demand areas and rules on who pays the estate agency fees.
Civil Code (Código Civil): regulates room rental agreements.
If you want to rent out a property in Spain while living abroad, the most common choice is between two options: standard residential rental (long-term) or temporary rental (for a specific and limited need). The difference is significant: the duration, renewal terms and the level of tenant protection change.
This is the typical contract when the tenant will live in the property as their main residence and rent the entire home.
In Spain, even if landlord and tenant agree on a short initial term (for example, one year), the Urban Leases Act (LAU) establishes a legal minimum that the tenant may claim through mandatory extensions:
Up to 5 years if the landlord is a natural person (an individual).
Up to 7 years if the landlord is a legal entity (company/corporation).
In other words: even if we sign for a shorter period, if the property is used as a main residence, the tenant may have the right to remain until those minimum terms are reached.
In addition, once those 5 or 7 years have passed, there may be a further extension (as provided for in the LAU and depending on the circumstances at the end of the contract).
A short-term rental is intended for situations where the tenant needs the property for a specific and time-limited reason. For example, for studies or temporary work.
There is one key idea that is important to understand:
The key factor in a temporary rental is its purpose, not just its duration. A contract may last 6 months and, even so, if the actual use is residential (living there “as if it were their permanent home”), it may be considered a main residence.
This matters because in some areas there have been attempts to use temporary contracts as a “shortcut” to avoid the rules that apply to standard residential rentals (for example, rent caps or mandatory extensions).
There are also other options:
Tourist rental: This involves renting out a property for holiday purposes and short stays. This type of rental is usually subject to specific regulations and, in many municipalities, requires compliance with additional requirements or a licence.
Rent-to-own agreement: In this case, the tenant rents the property for a set period but has the option to purchase it at the end of the contract. Typically, part of the monthly rent paid is deducted from the final purchase price if the tenant exercises that option. It is a formula that combines rental and sale, and must be expressly regulated in the contract.
Room rental: This involves renting out only one room within the property rather than the entire dwelling. This type of room rental agreement is governed by the Civil Code (Código Civil), not by the Urban Leases Act (LAU) in relation to main residences. It is common in large cities or university areas.
Even if we live abroad, we remain responsible for the property. Before renting it out, we must be clear about several aspects.
We need certain documents to rent out a property:
The title deed.
The occupancy certificate (cédula de habitabilidad).
The energy performance certificate.
According to the LAU:
It is mandatory to request a deposit equivalent to one month’s rent.
You may also request an additional guarantee of up to two months’ rent.
The deposit must be lodged with the relevant authority depending on the Autonomous Community.
The Housing Act (Law 12/2023) establishes that payment must be made by electronic means.
Exceptionally, if either party does not have a bank account or access to electronic payment methods, it may be paid in cash at the rented property.
According to Article 21 of the Urban Leases Act (LAU), the landlord must carry out the necessary repairs to keep the property in habitable condition.
For example:
Repair or replacement of the boiler.
Repair of the air conditioning system.
Maintenance of pipes and wiring.
Repair of damp issues.
The tenant, on the other hand, will be responsible for minor repairs resulting from normal use of the property, as well as repairs of damage caused by improper or negligent use.
Once we become owners of a property in Spain, we take on a series of recurring expenses when buying a home, even if we rent it out and live abroad.
It is important to take these into account because they form part of the real cost of maintaining the property.
The main expenses include:
IBI (Impuesto sobre Bienes Inmuebles – Property Tax): A municipal tax payable by property owners. The amount depends on the municipality and the cadastral value of the property. It generally ranges between 0.4% and 1.3% of the cadastral value. For a property valued at €100,000, this would mean paying between €400 and €1,300 per year.
Community fees: If the property is part of a building or residential complex with shared areas, there will be a community fee. This is usually paid monthly and typically averages around €100 per month, although it depends on various factors (number of neighbours, lift, concierge, swimming pool, etc.).
Insurance (home or rent default insurance): Home insurance is not always mandatory, but it is advisable to cover potential damage to the property. The average cost of home insurance is around €250 per year. In addition, if we are renting out the property, we can take out additional rent default insurance to protect ourselves in case the tenant fails to pay the rent.
Estate agency fees, if we manage the rental through an agency.
Yes. In addition to the recurring expenses when buying a home and taxes such as IBI, if we are not tax residents in Spain and we earn income from renting out the property, we must pay Non-Resident Income Tax (Impuesto sobre la Renta de No Residentes – IRNR).
This tax applies to individuals who:
Are not tax residents in Spain.
Are owners of a property located in Spain.
Earn income in Spanish territory (for example, from rent).
Or have a property in their name, even if it is not rented out.
In other words, even if we live in another country, if we own a property in Spain we must declare here the income it generates.
The applicable tax rate depends on the owner’s country of residence.
When the property is rented out:
A rate of 19% applies if you reside in a country within the European Union, Iceland, Norway or Liechtenstein.
A rate of 24% applies if you reside outside those territories.
The tax is applied to the relevant taxable base in each case.
The return is filed using Form 210 (modelo 210). The deadline depends on the type of income being declared.
If the property is rented out, the filing is quarterly.
The deadlines are:
Each calendar quarter must be declared separately.
Managing a rental from abroad can be more complex, especially in a context where regulations change frequently. For this reason, it is advisable to hire property professionals who can advise us and make the process easier.
An estate agency can take care of matters such as:
These services involve paying the fees previously agreed with the agency.
In short: yes, you can rent out your home in Spain even if you live abroad.
However, you must comply with the applicable regulations, choose the appropriate type of contract, assume your obligations as a landlord and declare rental income through IRNR.
At Fotocasa, we remind you that being well informed before starting the rental process is essential to avoid legal or tax issues and to manage your property safely, even from outside Spain.
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