Each quarter tenants of business rentals have to pay to the Hacienda 19% of the rent, which is withheld from the payment due to the owner of the premises. This is done by means of “modelo 115“. (tax-form #115)
Each quarter companies and autonomo’s have to pay to Hacienda the tax withheld from their employees, or other professionals from whom they get invoices.This is done by means of the “modelo 111“ (tax-form #111).
Non-residents who obtain incomes by means of the rental of a property in Spain must file the Non-resident Income Tax. Find answer to some questions here.
There are a number of advantages when operating your business as a limited company that could well compensate the initial costs of incorporation and the slightly higher running costs.