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income from an Air BnB in Spain - What would my tax liabilities be to Revenue>

  • 11-08-2023 4:00pm
    #1
    runtall
    Registered Users, Registered Users 2 Posts: 6 ✭


    I'm seriously considering buying a flat in Valencia to rent out on Air BnB.

    I know that Spain charges 20% tax on this rental income.

    What would I have to pay on that money to Revenue?

    I live in Ireland and am not currently working or claiming any Job seekers allowance etc. I know they have a joint taxation treaty buy don't know how that works in reality.

    Any help is appreciated. Thanks


    PS. I'd expect the income to be anywhere from 10-16k

    Tagged:


Answers

  • #2
    Citrus_8
    Registered Users, Registered Users 2 Posts: 1,175 ✭✭✭Citrus_8


    https://www.boards.ie/discussion/2058308937/income-from-an-air-bnb-in-spain-what-would-my-tax-liabilities-be-to-revenue

    Within the EU you pay income tax to the country you're a resident at. So if you live in Ireland, you pay tax of the foreign income to the Irish Revenue Commissioners. You'll need to submit you income declaration. Just lookup on the Revenue website for more info.



  • #3
    justforkicks
    Registered Users, Registered Users 2 Posts: 8 ✭justforkicks


    I believe citrus is incorrect. My understanding is in Spain, Airbnb report directly to Spanish Revenue. Generally income is taxed in the country it is earned, first. Spain allows expenses, interest, other taxes as deductions then 19% flat rate on EU residents. Spain also has a tax on the time the rental property is vacant. These two get paid to Spain, and are offset against any tax owed to Irish Revenue.



  • #4
    Peregrinus
    Registered Users, Registered Users 2 Posts: 26,984 ✭✭✭✭Peregrinus


    As an Irish resident you are liable to tax on your worldwide income, including income from property you own in Spain. Your tax liablity will be computed in exactly the same way as if you owned a rental property in Sligo rather than Spain - gross rental income, less allowable deduction, taxed at your marginal Irish rate.

    The income from the Spanish property is also liable to tax in Spain.

    Happily, under under the Ireland/Spain Double Taxation Agreement, you get a full credit in Ireland against your Irish tax liability on the rental income for any tax you pay in Spain. If the Spanish tax liability equals or exceeds the Irish tax liability, then you pay no tax in Ireland on your Spanish income.



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