According to Spanish law, income derived directly or indirectly from property assets in Spanish territory or rights relating to them is considered to be obtained in Spanish territory.

However, The Agreements signed by Spain attribute power to tax the income from real estate assets to the State where the real estate is situated. In accordance with the agreements, income from property assets can be subject to taxation in the State where they are located, whether the income derives from direct use or usufruct, from leasing or from any other way in which they are exploited. Therefore, the income derived from real estate assets situated in Spain can be taxed in accordance with Spanish law.

The income obtained from sources other than a permanent establishment must be declared separately for each partial or total accrual of income subject to tax.

Generally, the taxable base is the whole amount, i.e. without deduction for any expenses.
However, In the case of taxpayers resident in another member State of the European Union, and for accruals from 1 January 2015:

– In the case of natural persons (private individuals), expenses listed in Law 35/2006 of 28 November, the Personal Income Tax Act, provided that the taxpayer accredits that these are directly linked to income obtained in Spain, and can accredit a direct and indissoluble link to the activity pursued in Spain
– In the case of corporations, deductible expenses listed in the Corporation Tax Act,provided the taxpayer accredits that these are directly linked to income obtained in Spain,and can accredit a direct and indissoluble link to the activity pursued in Spain

In the case of leased properties, the earnings are calculated by taking the gross income that is received from the tenant, including all the assets transferred with the building and excluding the Value Added Tax. If the building is only let for part of the year, the income must be determined as in the previous paragraph for the months during which it is let and for the rest of the year, the income will be the proportional part of the assessed value (1.1%, or 2% of the rateable value, if applicable) and the tax rate for 2016 for Resident in the UE, Norway and Iceland is 19%; 24% for other Taxpayers.

Duties: must be declared quarterly before the 20th of the months of April, July, October and January (depending if the balance is positive, cero or there are losses).