The Spanish authorities deem an annual income to arise from a Spanish property owned by non residents.

This NOTIONAL INCOME is calculated at 2 % of the value of the property. The tax rate applying is a FLAT

25%. If the Spanish property is rented out, you will pay tax at a flat rate of 25 % on the higher of the gross rental income.

(Non residents are not entitled to deduct expenses), or the deemed income calculated as above. You will also need to consider the income tax position in your country of residence if you do rent out your Spanish property. If you are resident in the UK you will be liable to pay tax in the UK on the rental income subject to double tax credit relief.