Renting out property on the Costa Brava in 2026 involves different rules for permanent homes, genuine seasonal lets and holiday accommodation. Spanish tax-resident landlords may deduct qualifying expenses and, for eligible long-term residential leases, reduce positive net rental income subject to personal income tax by 50% to 90%. These percentages do not mean a cash refund of the same share of rent collected.
Which rental laws should Costa Brava landlords know?
Spain's Urban Leases Act governs residential contracts. Housing Law 12/2023 established tax incentives and rent restrictions in officially designated stressed housing markets. Catalonia's Law 11/2025, effective from January 2026, tightened rules for seasonal and room rentals. A further national Royal Decree-Law 29/2026, issued in October, addresses genuine temporary needs, room rentals and tenant protections. As decree-laws are subject to parliamentary procedures, landlords should verify the current consolidated text before signing.
Can I still offer a seasonal rental?
Yes, where the tenant has a real, documentable temporary reason for staying. Simply calling a lease 'seasonal' does not remove permanent-residence protections. Unjustified duration or successive contracts may cause reclassification. Keep evidence of the temporary need and relevant dates. A lease for a person's actual permanent home should be treated accordingly.
Is there a maximum rent for individual rooms?
In officially designated stressed housing areas, Catalan rules prevent the total simultaneous room rents from exceeding the legal maximum rent for the whole dwelling. Occupancy must also comply with the property's habitability certificate. Check the municipality's current designation, previous rent and applicable reference index. For properties in Lloret de Mar, a property-specific assessment is preferable to relying on advertised asking rents.
What expenses can a Spanish tax-resident landlord deduct?
Under IRPF, Spain's personal income tax, eligible costs may include mortgage interest, repairs and maintenance, insurance, community charges, management fees, utilities paid by the owner, IBI (annual municipal property tax), certain municipal charges and tax depreciation of the building and furniture. Tax depreciation spreads qualifying value over time rather than requiring a current cash payment. Improvements and extensions are generally capitalised instead of immediately deducted as repairs. Interest and repair costs have specific limits. Expenses must be evidenced and allocated to the rental period and rented share of the property.
How do the 50%, 60%, 70% and 90% tax reductions work?
Eligible permanent-home leases signed before 26 May 2023 generally retain the 60% reduction. For contracts from that date, the ordinary reduction is 50%. A 60% reduction may apply after qualifying rehabilitation completed within two years before signing. A 70% reduction may apply in defined cases, including a first letting to tenants aged 18–35 in a stressed area, or specified social housing programmes. A 90% reduction may apply where the same landlord signs a new lease in a stressed area and lowers initial rent by more than 5% compared with the updated previous rent. Every enhanced rate has detailed conditions. These are reductions of positive net income, not tax credits, and do not automatically apply to holiday or seasonal lets.
What could I save on €1,000 monthly rent?
Suppose annual rent is €12,000 and allowable expenses total €4,000. Net rental income is €8,000. After reductions of 50%, 60%, 70% or 90%, the taxable portion becomes €4,000, €3,200, €2,400 or €800 respectively. At a purely illustrative marginal rate of 30%, the tax associated with these amounts would be €1,200, €960, €720 or €240, compared with €2,400 without any reduction. Actual tax depends on the complete return and the taxpayer's circumstances; this is not an automatic refund.
What if I live outside Spain?
Non-resident income tax, IRNR, follows separate rules. Qualifying residents of EU countries or certain European Economic Area countries with effective tax-information exchange may deduct directly related documented expenses. General reference rates are 19% for qualifying residents and 24% for others, subject to applicable law and treaties. The IRPF residential rental reductions should not be assumed to apply to IRNR. Check your home country's reporting obligations and double-taxation treaty.
Are holiday rentals treated differently?
Yes. Holiday accommodation requires checking land-use permissions, relevant registration and local restrictions. A tourist licence means the authorisation or registration required for tourist use where applicable; ownership does not guarantee eligibility. Hotel-like services can change the tax treatment. The ordinary residential IRPF reduction is unavailable for holiday lets. Compare opportunities in Tossa de Mar and Blanes only after verifying each property's legal position.
Can I reclaim tax from previous years?
A corrected tax return may be possible if deductible expenses or eligible relief were omitted, generally within a four-year limitation period. A refund is not guaranteed. Retain contracts, bank records, invoices, proof of occupancy and depreciation calculations. A refundable security deposit is not normally rental income. Consider specialist advice before amending an earlier return.
AllCostaBrava can help you assess a property's rental potential and local market position, alongside qualified legal and tax advisers.
Frequently asked questions
Will the tax office refund 90% of my rent?
No. The 90% figure is a potential reduction in taxable net income, not a refund of gross rent.
Can I deduct property tax and insurance?
Generally yes, where attributable to the let property and properly documented.
Do holiday lets qualify for the 50% reduction?
No. That relief is tied to qualifying permanent residential leases.
Can I amend an old tax return?
Possibly, if an error occurred and the statutory limitation period has not expired.
