Declaration of Income Tax

We are committed to providing you with the guidance and support necessary to ensure that your Spanish property ownership experience is both smooth and compliant with local regulations.

The rate of Income Tax in Spain for non-EU citizens is now 24%, payable annually

If you are a Spanish Resident, you will be classed as an EU citizen so the Income tax rates will be 19%. You have possibly two tax returns to file each year

1 Income tax returns for the year ended 31st December 2024 showing all sources (including UK) income. This should be filed by June 2025

2 Wealth tax declaration, this may not be applicable if you have had no major changes since the last return  and this should be filed in January 2025

More specifically – Rental Property ownership (second holiday homes)

1 Properties owned in personal names

Rental tax is payable on an annual basis based on the catatstral value of the property. (between 1-2%). any Rents received are also declarable and taxable at the relevant rate dependent on tax status (resident or non-resident) (see above)

2 Properties held in a Company

Imputed Rental tax has to be paid annually based on market value rents for days when not rented in addition to actual rent received. This has to be reported annually on your non-resident tax return (Modelo 210)

We can assist you in completing the annual declarations (Non-resident and Resident tax returns) as necessary subject to your written instructions and advise on the amount of tax payable, or you may rely on your local fiscal  or managing property agent in Spain to complete the necessary returns.

It is important to keep up to date with local taxes, otherwise the Spanish Tax authorities can claw back any unpaid tax including fines and penalties for the last four years.