Income to verify
Documented rents for comparable properties, permitted use and periods that can genuinely be let. Days when you use the home yourself reduce its availability for letting.
THE GUIDE · INVESTMENT AND MANAGEMENT
An opportunity.
To assess carefully.
The appeal of the island may also fit an income-generating project. Assess it against permitted use, reliable management and a prudent budget after expenses and taxes.
First, permitted use.
Then, the figures.
Tourist letting, genuine seasonal letting and residential letting follow different rules. Renaming a contract does not bypass requirements or restrictions. Before buying to rent out, obtain written advice on the particular case from a local professional.
Vivienda vacacional: what to check today
Canary Islands Law 6/2025, effective from December 2025, changed the framework for tourist use of homes. Check municipal planning, permitted use, technical requirements and the applicable authorisation regime, including transitional rules. An old listing saying “licensed” is not sufficient.
In particular, under the transitional regime for consolidated tourist use, the declaration also ceases to have effect when ownership is transferred. Do not assume that this applies identically to every case: have the precise regime and the effect of the sale on continued operation established.
Sources: Gobierno de Canarias · Ley 6/2025 ↗
The owners’ association also needs to be checked
For new tourist activities started from 3 April 2025, the horizontal property rules generally require express approval from the owners’ association by three fifths of both owners and ownership quotas. Transitional situations need to be checked. Examine the statutes, meeting minutes, restrictions and association charges alongside the tourist-use authorisation.
Sources: BOE · Ley de Propiedad Horizontal, Articles 7 and 17 ↗
Platform listings and the national register: check for updates
In 2026 the Tribunal Supremo annulled parts of Royal Decree 1312/2024 concerning the Registro Único de Arrendamientos. Do not repeat the 2025 instructions on the national number as though nothing had changed. Check the current requirements with your adviser, the competent authorities and the platform before publishing. A number or online listing does not replace permission for tourist use.
Sources: BOE · RD 1312/2024, text updated in 2026 ↗ · BOE · Tribunal Supremo judgment of 1 June 2026 ↗
A BUDGET TO HELP YOU DECIDE
From gross income
to the actual return.
Costs to subtract
Management, platforms, cleaning, utilities, maintenance, owners’ association charges, insurance, taxes and professional advice. Also allow for vacancies and exceptional repairs.
Budget to allow for
Purchase price, taxes and initial expenses, any work and furniture. Mortgage repayments and a cash reserve must also be considered when assessing cash flow.
How we compare options
Estimated annual net result ÷ total capital invested: meaningful only when expenses, taxes and assumptions are explicit. Compare a prudent scenario with a more favourable one without presenting percentages as promised returns. HINRE can coordinate the collection of local estimates; it does not guarantee income.
OWNERSHIP AND TAX
Two countries.
One coordinated approach.
Spain: if the property is rented
For non-resident individuals without a permanent establishment, IRNR on rental income generally applies at 19% for tax residents of the EU, Iceland, Norway and Liechtenstein, and 24% in other cases. Tax residence matters, not nationality. For eligible taxpayers, directly related expenses may be deducted subject to the applicable conditions and documentation.
The operating model can entail further requirements, including IGIC. Do not assume that a tourist activity always has the same tax treatment as a straightforward letting. A local adviser must establish the applicable taxes, registrations and returns.
Sources: AEAT · rental income ↗
Spain: if the house stays at your disposal
Even without rent, a non-resident individual may need to declare imputed property income. Its base is generally calculated using 1.1% or 2% of the cadastral value, subject to the applicable requirements, and the relevant IRNR rate is then applied. These are not percentages of the purchase price payable as tax. Ownership share, days and periods not let matter; the relevant return is Form 210.
Sources: AEAT · imputed property income ↗
Italy: what to check if you are tax-resident there
Owning property abroad can trigger Italian foreign-asset reporting and IVIE obligations. The Italian 2026 instructions provide for schedules W or RW according to the return used and the taxpayer’s situation. Coordinate with your accountant on rental-income reporting, treaty rules and available foreign-tax credits: do not assume that paying tax in Spain settles your Italian obligations.
Sources: Agenzia delle Entrate · W section, 2026 instructions ↗ · Agenzia delle Entrate · RW section, 2026 instructions ↗
A future sale and substantial assets
Before investing, also request an exit-cost assessment: tax on any capital gain, local taxes and the withholding required when the seller is non-resident. For substantial assets, your adviser should also check any applicable Spanish wealth taxes. Include resale costs and timing in your plan.
Sources: AEAT · 3% withholding and Form 211 ↗
An investment begins
with good questions.
What is your overall budget? How much will you use the home? Who will manage it when you are away? What income would be sustainable after costs and taxes? Start with these questions and seek answers with colleagues on the island.
Let’s discuss your goal ↗Research and sources checked on . Introductory guidance: rates, requirements and permitted uses must be checked for the particular case before signing, with qualified professionals in Spain and, for Italian tax residents, in Italy.