Spanish Rental Taxes - why is it so complicated - help appreciated

We have recently decided to rent out (long term) our appartment in Malaga. We have taken advice from 3 differennt companies both before letting to make sure we were doing the right thing before going ahead. We were originally told that we could claim all of the mortgage interest, taxes and utilities, repairs,insurance etc. 

Our income is not huge 650 euros per month ( 1 year contract) - interest on the mortgage is approximately 500 euros per month.  Insurance etc brings us to negative income. -Our first rental bill was 500 euros for the first quarter. 

Can anybody give a breakdown of calculations on this - I am tired of asking the companies involved as they make is so complicated - so they can get their money.

Any help appreciated - we are in Malaga 

Thanks 

Hello Andy

Same old story in Spain, as 3 experts the same question and get 5 different answers. I admire you for your honesty (doing the right thing) but you are in the minority. Most declare nothing and don’t have any sort of letting licence. Can you blame them when most things in Spain cannot even be understood by the authorities themselves?.

Sometimes you need ask yourself, is it worth the hastle?.

Look at this website https://www.spanishpropertyinsight.com/2017/01/08/renting-spain-landlords-taxation-guide/  your answers may be there.

Thanks - yes I know the people who are legal get penalised. We know of many people who never paid a euro in taxes for many years, then sold their property and got away with it. We have always tried to be honest. There are many sites that are helpful but not to the extent where it give the exact breakdown of deductable items. And also when we are making a loss of the income - minus the mortgage interest plus other community fees etc and get a bill for 500 euros - something just doen't seem right. In the UK we are allowed to offset all of our expenditure against our outgoings. 

I will be looking at yet another company to see what they say. I think you have to have an expert from the province you own the property - Spain has it's own laws by Province and I think our mistake was to choose tax experts from different parts of Spain. 

I am not a tax expert (disclaimer!)

"Our first rental bill was 500 euros for the first quarter." Assuming you meant tax bill - was this actually the tax paid, or the "expert's" fee, or both? Do you not have a copy of the actual tax return, which should show you the breakdown you're after?

Jarvi’s suggestion to try 

https://www.spanishpropertyinsight.com/2017/01/08/renting-spain-landlords-taxation-guide/.

Appears to answer your questions 

Yes - sorry tax bill.  No breakdown despite asking for it. Additional fees on top for services. I have been given several people to go to now - so will get even more to add to the list. I am willing to pay - just need to work out whether its all worth the hassle.  Simple calculation is all i'm after, and whether you can offset white goods ( if broken) i.e the whole amount.  I know its 19% less something like 40% allowence, but of what ? Any ideas welcome. 

No breakdown as in no invoice for services? Then don't pay until you receive one. No breakdown as in no figures of declared income less allowable expenses? Then ask for a copy of the tax return form 210 which must show these amounts.

Thanks Roberto, I have looked at this form again.  It does give a breakdown and the cost is for two people plus fees so probably right.  But, it shows total income agaist expenses which doesn't quite add up.  All I need to know is can I offset a washing machine against my taxes e.g - washing machine costs 600 euros can I claim for it - if so I assume I breakl this down by 600 divided x 12 x 3.  Theses little things are what makes all the difference. The current machine is broken and needs replacing. So will most things eventually but can I calim ? 

Thanks for your help. 

Sorry Andy, I'm struggling to fully understand the problem. If, as you said, with mortgage & other expenses you're in negative income, why is there any tax to pay? I honestly don't know if a €600 washing machine is deductible or not (personally I would doubt it, but it may come under "maintenance", so why not just include it and hope for the best) But even if it is - again I don't know for sure, but my instinct would be to declare the €650 in the quarter it was purchased & not divvy it up over the year. But even if you do (€150 for the quarter) and even if you have no other expenses other than the €500 mortgage, you're looking at at the difference between tax on €150 or zero which is about €28? Is it worth the hassle?

I am not in favour of tax dodging but at times trying to be Mr Squeaky Clean is more trouble than it’s worth. It would seem in this case the only people making any money are your so called ‘experts’ you have engaged. Experts in what I am not sure.

Sorry, my figures were a bit out, should be the difference between €450 & €300, i.e. tax on €150 - but hopefully you get my point?