Many buyers of investment property in Torremolinos are not professional landlords. They want to earn income from their property when they are not using it, but they also need to understand the tax implications, the legal obligations and the practical realities before they commit. This guide covers all three.
The Legal Framework — What You Need in Place
VUT tourist licence
All holiday rental properties in Andalusia require a VUT licence (Vivienda de Uso Turístico). The application is made to the Junta de Andalucía and requires proof of habitation certificate, property ownership, public liability insurance and compliance with minimum facility standards (air conditioning, heating, first aid kit, etc). Once granted, the licence is tied to the property — it transfers with ownership. Glaser Group coordinates VUT licence applications for every property we manage.
NRUA national registration
Mandatory from July 2025 under Royal Decree 1312/2024, the NRUA (Número de Registro Único de Alquiler) is a national-level registration number required for all short-term rental properties in Spain. Properties without an NRUA number cannot be legally listed on Airbnb, Booking.com or any other platform. We register every property we manage.
Guest registration
Spanish law requires the host to record the identity documents of all guests staying in a licensed holiday rental property and submit this data to the Policía Nacional via the SES.Hospedajes platform within 24 hours of check-in. This is a legal obligation, not optional. Glaser Holiday Rentals handles this for every guest stay.
Tax on Rental Income — What You Actually Pay
Non-resident EU citizens
EU citizens who are tax resident outside Spain pay 19% tax on net rental income (gross income minus allowable expenses). Allowable expenses include management fees, cleaning costs, platform commissions, repairs and maintenance, insurance, IBI, community fees and a proportion of mortgage interest if the property is financed. The effective tax rate on well-managed, expense-rich properties is typically lower than the headline 19%.
Non-resident non-EU citizens
Following a 2024 court ruling confirming alignment with EU rules, non-EU citizens can now also deduct expenses against rental income in Spain, rather than paying 24% on gross income as was previously the case. This change significantly improved the after-tax return for American, British (post-Brexit) and other non-EU investors.
Annual tax filing
Rental income must be declared quarterly on form 210. An annual N2 report must be filed each February (introduced under the NRUA framework). Glaser Holiday Rentals provides monthly income reports and annual tax documentation in a format usable by your Spanish tax advisor.
What Returns to Expect — After Tax
Before tax, holiday rental returns on professionally managed Torremolinos properties range from 5% to 15% of purchase price annually. After Spanish rental income tax and management fees, the net return to the investor is lower — but for EU residents paying 19% on net income with proper expense deduction, the after-tax return remains competitive against most comparable European investment options.
We work with specialist Spanish tax advisors who can model the after-tax return on a specific property for a specific investor's tax situation. We always recommend getting this analysis done before purchase — not after.
Personal Use and Tax
If you use the property personally for part of the year, the tax treatment changes: only the proportion of costs relating to rental periods is deductible, not costs for personal use periods. The split is calculated on a pro-rata basis by days. This is straightforward to manage with proper records and a competent tax advisor.
Glaser Real Estate handles the purchase with no buyer fees. Glaser Holiday Rentals manages the rental income, handles all legal compliance including VUT, NRUA and guest registration, and provides the documentation your tax advisor needs. One team, from first viewing to end of year tax filing.
