Rent your property with the experts in La Quinta
If you decide to rent your apartment through La Quinta Administracion S.L., our procedure will be as following.
We will find a tenant for you and we will do the check in & out from your apartment. We always organize a full cleaning with our team before tenants’ arrival so everything is ready for their arrival. We charge 15€ per hour + VAT (4 to 6 hours is the average time).
In regards of our commission, it is the first month if the rental is on long term bases (from 6 to 11 months) and in short term lettings (from 1 week up to 3 months) we have a 15% of the total amount as our commission. In the case of lease renewal or extension thereof, La Quinta Administracion, SL shall be entitled to payment of the same commission
Regarding to electricity and water, both will be paid with other supplies as telephone or internet by the tenant in case of long term rentals (but not in the short term ones). You, as the owner, have to continue paying your taxes and community fees.
Key Holding is essential to have the apartment available all the time.
There are some documents we required to be completed before we can offer your apartment. In addition to that, we would also require a full inventory of items in order to use it at the check in & out of tenants and the last IBI (property tax) receipt you paid in Spain.
There are also some issues to be considered on the tax repercussions deriving from the rental of apartments through to La Quinta Administración S.L. Although we always advice on checking all this information with your lawyers who best know about the last changes in law and taxes.
Non-residents property owners in Spain are liable for the following annual taxes:
1) LOCAL RATES: called the I.B.I. - Impuesto sobre Bienes Inmuebles - (council tax). This is a municipal tax paid annually to the Town Hall. The IBI receipt will show the valor catastral (the rateable value for your property). This figure is very important since various taxes are based on it. An easy and convenient way to pay the I.B.I. bill is by direct debit.
2) INCOME TAX: (Non-residents’ annual tax return) - Regardless of whether or not your property is rented out you will always have to pay income tax as per the following rules:
If your property is not rented out, Spanish law assumes you have what is called “Deemed Rental Income” which is subject to non-resident Income Tax. This legal rent is obtained by applying the percentage of 1.1% on the cadastral value (rateable value) of the property, on which amount the rate of 24,75 % is applied. This cadastral value is reflected on the IBI (council rates) and is normally lower than the value reflected on your title deed.
If the property is rented out, the rate applicable is 24,75% on the net rent obtained by the landlord of the property. According to the new Law, citizens from the EU are allowed to deduct the expenses incurred during the period the property was rented out: electricity; water; community fees; home insurance; interests on mortgage; Local Rates (IBI) & Rubbish Collection; maintenance; cleaning services; 3% annual building depreciation. In this case, a Tax Residence Certificate, issued by the tax authority of the country you reside, must be submitted together with the tax forms (one for each tax payer).
3) WEALTH TAX: This tax has been abolished in 2008 and was temporarily reintroduced for 2011, 2012, 2013 and 2014 and will only affect both residents and non-residents with assets in Spain over € 700.000.The period for filing the income tax returns for non-residents who only have one property in Spain runs the following year. In other words, the payment of the taxes corresponding to 2015, has to be paid during 2016. The income tax will be calculated on a pro rata basis for the first year.
In this sense La Quinta Administración S.L., as the payer of this income is required to make 24,75% withholdings and interim payments based on the amounts paid to apartment owners.
Accordingly the 25% paid by the owners in Spain in Non-Residents’ Income Tax should be taken into account by their countries of residence: either by declaring this income exempts (in which case it would not need to be declared in their country) or by a mechanism providing for the deduction of tax paid here. This will depend on the internal legislation of each country.
If you wish to hire any of these services or need any additional information, please contact us on the numbers and email address below. Our opening hours are Monday to Friday 09:00 to 18:00.