Spain - Flat expenses Autonomo vs Employee for RENTA
Thread poster: fr54ert
Mar 5, 2014

Dear all,

Anyone here who faced the same situation and can share wisdom?

I am an Autonomo in Spain, my partner works as employee (33 years, 30.000 EUR income before taxes) in Spain. We are moving from a flat we own to a flat we will rent (800 EUR / month).

Question with regards to RENTA:
Is it financially more attractive to put my partner or to put me in the rental flat contract agreement?

I know that I can put up to 50% of the flat as expenses, which equals 12x0.5x800=4800 EUR / year, which likely will mean approx 960 EUR more for me (20% of 4800 EUR). Plus I can declare 50% of related expenses like Comunidad and electricity.

I know that my partner cannot declare expenses such as Comunidad and electricity. But what about the 800EUR rent? Reading this article, it looks like one cannot declare those expenses if you earn 24K EUR or more per year bruto.

And yes, I went to the Hacienda yesterday. Unfortunately, they were not very clear with their response.

I look forward to your input.

Thank you:)


[Edited at 2014-03-05 12:17 GMT]

[Edited at 2014-03-05 12:18 GMT]


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Alex Lago  Identity Verified
Spain
Local time: 15:56
Member (2009)
English to Spanish
+ ...
I'm sorry but your information is wrong Mar 5, 2014

fr54ert wrote:
I know that I can put up to 50% of the flat as expenses, which equals 12x0.5x800=4800 EUR / year, which likely will mean approx 960 EUR more for me (20% of 4800 EUR). Plus I can declare 50% of related expenses like Comunidad and electricity.


Sorry you've been misinformed.

In Spain if you work at home you can only deduct the proportional part of the home that is actually taken over by your professional activity. So if the home is 80 m2 and your "office" takes up 40 m2 then you could deduct 50% (you could even deduct more if the office took up more than half the house) , but if the "office" is only 20 m2 you would only be able to deduct 25%, and if it were 15 m2 you would deduct 18.7%, etc.

Also Spanish hacienda is very strict and you have to prove the part of the house that is used for work is only used for work purposes and nothing else, the inspectors can actually come to your house and ask to see your work area, so if you work in your living room then you won't be able to say it is only for work as they won't believe you don't use it for "family life", if you use an actual office area or a spare bedroom then it has to be set up as an office and it must only be used for work (so if you've got all you gym equipment in there also, that’s no good either). The area has to be an actual office, not just part of your house were you work.

You cannot deduct any expenses for Gastos de Comunidad if the house is rented, you would only be able to do that if the house was owned (and following the same procedure as above).

You cannot deduct any electricity unless you actually have two electricity meters and two bills, one for the "house" and one for the "office".
[/quote]

I know that my partner cannot declare expenses such as Comunidad and electricity. But what about the 800EUR rent? Reading this article, it looks like one cannot declare those expenses if you earn 24K EUR or more per year bruto.
[/quote]

No she can't deduct any rent expenses.


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fr54ert
TOPIC STARTER
Clarification Mar 6, 2014

Thank you Alex. To clarify for other readers, based on information received by the Hacienda:

I agree with the rent: only the dedicated office space, therefore my statement "up to 50%". I cannot deduct more, even if I use 60% for the business only - at least this is the info received by the Hacienda yesterday.

I disagree with the Comunidad: if the contract states that I (=the person that rents the place) have to pay the Comunidad then I can deduct the percentage used, max. 50%.

I disagree with the electricity bill: I was told by the Hacienda that I can calculate the percentage that equals the space used at home, i.e. 50% office space = 50%electricity bill, even without the meters.

Looks like the same old hacienda story: ask 3 people, receive 3 different answers

All the best and thanks again Alex for sharing.


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Alex Lago  Identity Verified
Spain
Local time: 15:56
Member (2009)
English to Spanish
+ ...
I would check with a Gestoria Mar 11, 2014

Problem is that unfortunately in Spain you can't always trust what the Hacienda customer service people tell you, because as you yourself said ask them three different times and you will get three different answers.

I also forgot to mention (you should probably would check with a Gestoria), but as far as I know in order for you to be able to deduct the rent the contract will have to include VAT, that is you will have to pay VAT on the rent if you want to deduct part of it, problem is (if I'm right) I'm pretty sure that entails paying VAT on the whole rent even if you can only deduct part of it.

Asked around and you may be able to deduct the gastos comunidad, though there is disagreement on this, so it may be that you can't, not sure any more.

Everyone I've asked (and also checked on Internet) says that do deduct electricity it has to be a separate bill.


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Spain - Flat expenses Autonomo vs Employee for RENTA

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