Dear AirBnB Help Center...
We do have property in Santa Pola / Spain which we started renting out via AirBnB last year . We do have 2 small studios in the house.
The total income had been 9215 Euro in 2024. Our local costs for energy and water supply, insurance, local city tax, internet, tax adviser and small repairs had been 3940 Euro. This leave 5.057 Euro . From that we paid 1.454 Euro tax to Spain. Since we are residents in Denmark we have to pay 45 % income tax for income gained in Spain . 5.057 Euro income is deduced by the tax of 1.454 Euro paid in Spain leaves 3.603 Euro from which we have to pay 45 % tax in Denmark 1.621 Euro . This leaves us with a bottom line of 1.981 Euro to pay for our cleaning, communication with guest and maintainance of the house. We used more than 180 working hours last year which leaves us with a salary of 11 Euro / hour . In addition to that we did finance the house without bank loan.
Are we doing anything wrong in concection with the tax payments both in Spain and Denmark ?
If not , it does not really make sense to invest in a property for rentals that did cost us 180.000 Euro and gains an income of 1.981 Euro.
Best regards
Dietmar *
