If I let commercial premises as a private individual, do I have to register with the tax authorities?

Yes. For VAT purposes, anyone who lets commercial premises is regarded as a business even if they are a private individual, so you must register in the tax authorities' register of businesses (the “censo de empresarios”) before you start letting them. Registration is done with Form 036, which is now the only one, because Form 037 was abolished in 2025. You will then have to issue invoices with VAT and file a VAT return every quarter. For income tax, on the other hand, the letting is not a business activity and is declared like that of a flat, although without the allowance.

Alburquerque Abogados

José Manuel Alburquerque
Landlord and tenant

Registration

  • It is filed before you start letting, using Form 036. If you were already registered for another activity, what you file is an amendment.
  • Form 036 states the activity for the business activities tax (the “impuesto de actividades económicas”), which for letting commercial premises is heading 861.2. Individuals do not pay that tax.
  • Form 037, the simplified return, ceased to exist on 3 February 2025. Today everything is done with Form 036.
  • If you are not resident in Spain, you must also register and charge VAT.
  • When you stop letting the premises, you deregister using the same form.

Invoices and VAT returns

  • An invoice for each rent payment, with VAT and, if the tenant is a company or a self-employed person, with the 19 % withholding.
  • Every quarter, Form 303, from 1 to 20 April, July and October and from 1 to 30 January for the last quarter. With it you pay the VAT charged less the VAT you have paid on the expenses of the premises.
  • If in a quarter you have not let the premises and have no VAT to deduct, you still file it, indicating that there was no activity.
  • If you only let urban properties, which is the norm, you do not file the annual VAT summary, Form 390. It is enough to fill in the figures for the year in Form 303 for the last quarter.
  • If what you receive from the same tenant in the year exceeds 3.005,06 euros, including VAT, in February you also file the annual return of transactions with third parties, Form 347, giving the cadastral reference of the premises.

For income tax

For the “IRPF”, Spain's personal income tax, letting commercial premises is not a business activity, unless you have someone employed full-time to manage it. You do not make quarterly IRPF payments on account and you declare the rent on the following year's income tax return like that of a flat, without the allowance. The October 2026 decree changes none of this.

This answer is provided for educational purposes and offers initial guidance on the question raised. Every matter has its own circumstances and nuances that require individual assessment. For that reason, before taking decisions with significant consequences, it is advisable to consult a professional and not to rely solely on this information. Personalised advice makes it possible to apply these explanations to the specific case and to assess the options available with greater certainty.