Renting Property in Spain: A UK Owner's Guide (2026)

UK owner renting property in Spain? This guide covers tourist licenses, short-term vs. long-term rentals, taxes for non-residents, and essential legal requirements to avoid fines.

A person sitting at a desk in the UK, looking at a tablet showing a sunny Spanish villa, contemplating property rental.

TL;DR: If you own a property in Spain and live elsewhere, you can rent it out. However, you’ll likely need a tourist rental licence for short-term stays, and ignoring this can lead to huge fines, sometimes over €30,000. Non-resident UK owners face a 24% tax on their rental income and must also pay tax on the property even when it’s empty. Always check regional rules, as requirements for renting out property in Spain differ greatly from one area to another.

Imagine you’re living in the UK, but your heart, and a spare apartment, are in sunny Spain. You love visiting, but you also want that property to work for you, perhaps covering its costs or even bringing in extra income. Many people who split their lives between countries, like you, choose to rent out their Spanish homes. This guide is for UK owners, making sure you understand all the steps, from getting the right permits to handling taxes, so your property in Spain can be a hassle-free asset rather than a headache. Staying reachable and managing your affairs from a distance is key, whether you want to keep your UK number working abroad or manage your Spanish commitments.

Can foreigners rent out property in Spain?

Yes, people from other countries can legally rent out property they own in Spain. It does not matter if you live in Spain or not. However, you must tell the Spanish Tax Agency about all the money you earn from rent. If you do not live in Spain (you are a non-resident landlord Spain tax), you also need to pay tax on your property even when it’s not being rented out. The tax rate is higher for people from outside the EU. So, if you are a UK owner, this is an important point to remember.

What types of rentals are there in Spain?

When you plan for renting out property in Spain, you will usually choose between two main types of rentals: short-term holiday rentals or long-term residential rentals. Each type has different rules and how much money you can earn from them. It is important to decide which one fits your goals best before you advertise your property.

Short-Term Holiday Rentals

These are for tourists and people on holiday. Stays often last from a few days to several weeks. In some areas of Spain, like Andalusia, properties rented for less than 60 days are usually seen as tourist rentals. These types of rentals have extra legal requirements. This might include needing to register your property and follow specific rules for that region.

Brightly lit living room of a modern Spanish holiday home

Long-Term Residential Rentals

These are for tenants who will live in the property as their main home. The contracts often last for several months or even years. While you might earn less money each month compared to holiday lets, long-term rentals offer a more steady income. Most of the time, long-term rentals do not need a tourist licence in Spain. However, landlords must still follow Spain’s tenancy laws. If you are managing your Spanish property from afar, it’s worth knowing about services that help you keep your Spanish number abroad for easy communication with long-term tenants.

Landlords in Spain must follow national rental laws. This includes getting a valid Energy Performance Certificate (EPC) for the property. You also need to make sure the property is safe and good enough to live in. Landlords must give tenants a written agreement for the rental and a list of everything in the property, including its condition.

Rules for security deposits can change depending on the region. In some areas, you must put the deposit money with a local government housing agency (Agencia Social de la Vivienda). This is similar to how a government-approved tenancy deposit scheme (TDP) works in the UK.

Many regional governments require owners who offer short-term stays to register their property. They must also get a tourist rental licence before they can advertise or accept guests.

In the past, Spain had a national system for registering short-term rentals, where each property needed a special code. But in May 2026, the Supreme Court cancelled this central system. The court said that the power to give licences belongs mostly to the regions. So, regional registration and licence requirements still apply. Owners should always check the local rules where their property is. It is also possible that your community building or residents’ association might have rules against tourist lets.

Do I need a tourist rental licence for renting out property in Spain?

Whether you need a tourist rental licence depends mainly on where your property is located and what kind of rental you plan to offer. To register, you often need to meet basic standards for safety and facilities. However, the exact rules are different in each region.

The process to get a tourist rental licence usually means sending an application or declaration to the tourism authority in your area. You will also need to pay the required fees. You can often do this online or at the tourism office.

In some places, owners also need a certificate from the town hall. This certificate confirms that the property’s zone allows for tourist use. For example, these rules are in place in Valencia and parts of Catalonia.

Once your application is approved, you will receive a registration number. This number must be shown on all your rental listings and used when you advertise the property. In some regions, you might be able to start renting as soon as you submit your declaration, so it’s vital to check the specific rules in your area.

Renting out property in Spain without a valid licence can lead to big penalties. Depending on the region and how serious the rule-breaking is, fines can range from a few thousand euros to €30,000 or more. Make sure you keep up-to-date with any changes to these rules to stay legal and avoid possible penalties.

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How should I set the rental price for my Spanish property?

When you are deciding on your rental price, look at similar properties in your local area. This will help you understand how much tenants or holidaymakers are willing to pay. You can check local property websites and rental platforms. Compare properties that are similar in size, location, and features to yours.

For long-term rentals, look at the current monthly prices in the area. Also, think about things like how many people want to rent (demand) and the condition of your property. If you are renting to holidaymakers, the time of year and popular travel periods will also affect the price you can charge. Many landlords work with local real estate agents or companies that specialise in property management Spain. These professionals can help you understand the market and set the right price.

Sunny balcony of a Spanish apartment overlooking the city

What is the tax on rental income in Spain?

Rental income is generally taxed in Spain for both residents and non-residents. For residents, the tax rate is 19% on the money left after expenses (net rental income). However, for non-EU residents, including UK owners, the rate is 24% on the total rental income (gross rental income). Non-EU residents usually cannot take away expenses from this income.

Non-resident landlords are also affected by Spain’s Non-Resident Income Tax rules. This means that, as a UK resident, you will need to pay tax on ‘imputed rental income’ even if you are not renting out your property. This is a tax on the assumed income you could get from your property. The amount taxed is based on the property’s cadastral value (its official value for tax purposes). Typically, 2% of this value is used, or 1.1% if the cadastral value has been updated since 1994.

It is important to keep good records of all your rental income, bills, and costs throughout the year. This will make it easier to fill out any tax forms you need to and to show the authorities that you are following the rules if they ask.

Here’s a quick look at the main tax rates for rental income:

Taxpayer Type Rental Income Tax Rate Basis for Calculation
Spanish Residents 19% Net Rental Income (after expenses)
Non-Resident (EU/EEA) 19% Net Rental Income (after expenses)
Non-Resident (Non-EU, e.g., UK) 24% Gross Rental Income (before expenses)

Remember, this information is for general guidance only. You are responsible for calculating and paying your taxes based on the law. Always talk to a qualified financial advisor for tax advice specific to your situation. This is especially true for UK citizens, who might also need to consider their tax obligations when moving abroad.

What are common pitfalls of renting out property in Spain?

One of the biggest mistakes property owners make is thinking that the rules are the same all over Spain. In reality, the rules for licences and tourist rentals can be very different from one region to another. So, it is very important to check the specific rules that apply to where your property is located.

Another common problem is not declaring rental income correctly or not understanding tax obligations. Getting advice from a tax professional can help you understand what you need to do and make sure you follow all the rules. This is crucial for avoiding issues as a non-resident landlord Spain tax.

Finally, if you live in the UK, you should think about hiring professional property management Spain. Many non-resident landlords do not realise how much time and effort it takes to deal with tenants and property upkeep from another country. This can cause delays and a lot of unnecessary stress. A professional manager can handle things like maintenance, tenant inquiries, and even local inspections, which is especially helpful if you are also managing a US number from abroad or other international connections.

spanish villa

What are some tips for renting out property in Spain?

Before you start renting out property in Spain, it’s good to understand the key steps. These tips will help make your rental experience smooth:

  • Check the local rules: The requirements for renting can vary a lot across different regions in Spain. Always make sure you know the rules for your property’s specific location.
  • Understand your tax duties: Be clear on how rental income must be reported and what taxes apply to your situation, especially as a non-resident landlord Spain tax.
  • Use a written rental agreement: A clear, written contract protects both you and your tenants.
  • Think about a property manager: Consider hiring a property manager to help with tenants, maintenance, and other tasks if you live far away.
  • Get proper insurance: Make sure your property is insured specifically for rental use.

How can I manage my Spanish rental income across borders?

Renting out a property in Spain often means you receive money in euros, but you might manage your main finances from the UK. You may also need to send money between countries to pay for property management, repairs, and other ongoing costs. Having a flexible way to hold, change, and send different currencies can make managing the money side of owning a rental property abroad much easier.

When you send money abroad, many banks and other providers might say they have “no fees.” However, they could be adding a hidden extra charge to their exchange rate. This can reduce your budget by up to 2% when moving money internationally, impacting how much you save. On a £50,000 transfer, such hidden mark-ups could cost you up to £1,000 more compared to services that offer the real exchange rate. These hidden costs can become a significant factor in your overall earnings from renting out property in Spain.

If you are managing finances from abroad, you might find it useful to check guides on other aspects of international living, such as how to handle ATMs in Germany or understanding payment methods in Hong Kong, to ensure you’re always getting the best value.

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FAQs on renting out property in Spain

Below are answers to some of the most common questions about renting out property in Spain:

Do I need a licence to rent out my property in Spain?

In some Spanish regions, owners who offer short-term holiday rentals need a tourist rental licence. It’s a key part of the rental licences Spain framework.

How is rental income taxed in Spain?

For non-resident owners from outside the EU/EEA, rental income in Spain is taxed at 24%. For non-resident owners who live in an EU/EEA country for tax purposes, the rate is 19%.

Do I need to pay tax while my property is vacant?

Yes. Non-resident property owners may still need to pay Non-Resident Income Tax (IRNR), even if the property is not rented out. This is part of the non-resident landlord Spain tax obligations.

What happens if I rent without a tourist licence?

Renting out a property in Spain without the required tourist rental licence can lead to large fines. In some cases, these fines can be more than €30,000.

Key takeaways

  • People from other countries can legally rent out property in Spain. You can offer either short-term tourist stays or long-term residential rentals. However, short-term lets often need a regional tourist licence and a national registry code.
  • Operating a holiday rental without a valid tourist licence or a town hall zoning certificate can lead to massive penalties. Fines can go over €30,000 in some areas.
  • UK owners face higher tax rates than EU residents. They pay a 24% tax rate on their gross rental income. They also pay a separate imputed income tax when the property is empty.
  • Landlords must follow strict national rules. This includes getting an Energy Performance Certificate (EPC), writing clear tenancy agreements, and putting security deposits into regional government-approved schemes.
  • Understanding these rules is key for anyone considering renting out a holiday home in Spain or looking for a full Spanish property rental guide.

Sources

#SourceWebsite
1tenancy lawsboe.es
2Impuestos tasassede.agenciatributaria.gob.es
3Spain renting propertyyouroverseashome.com
4How to buy property in spaingov.uk
5How to rent out your property legally in spain tourist licenses explainedinternationaltaxlegalspain.com
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Tom

Tom

Tom is the co-founder and Head of Growth at Keep My Number, writing about relocation, roaming alternatives, and staying connected across borders.