Residential rental income is real-estate investment income. It is declared on Modelo 100 by adding up the year's gross income, subtracting deductible expenses and depreciation, and applying —where relevant— the primary-residence letting reduction to the positive net yield.
The part most often neglected is depreciation and apportioning expenses to the days actually rented. That is where an orderly calculation changes the final tax bill.
What goes into the calculation
Gross income
Everything charged for the lease during the year, including amounts for ancillary services if you pass them on to the tenant.
Deductible expenses
Loan interest, IBI and local rates, community fees, insurance, utilities you cover, management and formalisation costs, and repairs and upkeep. Deducted in proportion to the days rented.
Depreciation
Usually 3% on the greater of acquisition cost and cadastral value, excluding land; furniture per the tables. An expense that does not leave your pocket but lowers the base.
Primary-residence reduction
If the property is the tenant's primary residence, the positive net yield is reduced by the percentage set by law. Does not apply to holiday or seasonal lets.
General rules subject to legislative change. Source: the IRPF Law and its regulation, and the Spanish tax agency.
How Keyio helps during the tax return campaign
- Adds up income and pro-rates each expense by the days rented automatically, from the contracts and expenses you already have loaded.
- Calculates the property's depreciation (3% on the greater value, excluding land) and the furniture's, year by year.
- Applies the primary-residence reduction and the imputed income for days available, and splits the result by ownership percentage.
- Gives you a per-property report, exportable as PDF, with the notice that it is not tax advice: review it with your advisor before filing.
This is not tax advice
This page explains general rules that change over time and does not account for your specific situation. Always check the figures with a qualified advisor and the official guidance before filing. Spanish tax agency (AEAT) website.
Frequently asked questions
Where is rental income declared on the return?
In the real-estate investment income section of the income tax return (Modelo 100). You report gross rental income, subtract deductible expenses and depreciation, and the primary-residence reduction is then applied, where applicable, to the positive net yield.
How is the property's depreciation calculated?
Deductible depreciation is usually calculated by applying 3% to the greater of the acquisition cost paid and the cadastral value, in both cases excluding the value of the land. Furniture and appliances are depreciated according to the relevant tables. Keyio performs this calculation per property and per year.
When is the tax return campaign?
The tax return campaign usually opens in early April and ends in late June of the year following the tax year. The exact dates are published each year by the Spanish tax agency; check them on its website before filing.
What if the home is empty for part of the year?
For the periods when the property is neither rented nor your primary residence, the tax authority imputes a real-estate income (a percentage of the cadastral value). Keyio calculates both the yield for the rented days and the imputation for the days available.