Tax Office focuses on undeclared Rental Income


The Spanish Tax Office is focusing on the owners of rental properties during 2015. How do they do it? They have collected the information contained on advertisements on different specialized Rental Income undeclared 2.docxweb pages to check with the returns and see if the rental income is declared or not on the Annual Income Tax Return.

With the new system prepared for the Campaign of Income Tax 2015, some people will receive a message on the “Información Fiscal” which will say: “According to data in the Tax Agency’s power, you have placed property rental ads in various media, including the internet”.

This is to encourage people to declare any Rental Income as well as Pensions paid from other countries and Income produce by Assets overseas. (In part, the Overseas Asset Declaration –also called Modelo 720- is used to check all this undeclared income)

From 2012, Tax Office has other ways of checking those undeclared rental incomes as different utility companies (Electricity, Water and Telephone for example), have to report the consumption of all the properties. When a property is declared as empty but the consumption is regular during the whole year, an alarm sounds in the Tax Office and the investigation will not last to start.

Around 49% of rental income in Spain was not declared in 2008 but this percentage is being reduced every year thanks to the conscience of the owners. Government also implemented measures to reduce the taxation of rental incomes and, if a property is rented to be the main home of the tenant, only 40% of the profit will be taxed. The other 60% is tax free.

If you have any question about this or any other tax question please, do not hesitate to contact us on a comment below, sending an email to or calling into our office on (0034) 965 705 502.

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  1. Can you please tell me, what if any expenses you can claim for for a long term rental property.
    For example, is it possible to claim for having the property decorated?
    Sandy Allison

    • Dear Sandy, thanks for your comment.
      You can offset to the rental income expenses like the interest paid on the mortgage, professional fees needed to rent the property or manage it, council taxes on the property and repairs. On repairs, I am afraid you can not include decoration according to Spanish Legislation.

      If you need any further information, please do not hesitate to contact us on 965705502 or by e-mail

  2. I have a holiday home in Spain I don’t rent it out is there any other tax than the suma to be paid on this property thanks

    • Dear Bob, thanks for your comment.
      If you are a non resident, you also have to pay the non residents tax. This tax depends on the Catastral Value which appears on your SUMA receipt.

      If you are a fiscal resident in Spain, on your Annual Income Tax Return you have a notional rental income which also depends on the Catastral Value.

      If you need any further information please, do not hesitate to contact us by e-mail or by telephone on 965705502.

  3. We pay our tax from our rents in the uk every year will this be affected ?
    Thank you

    • Dear Trudy, thanks for your comment.

      If you have rental income from the UK and you are Fiscal Resident in Spain, you will have to do a return in the UK and pay the taxes there and you also have to include the rental income less expenses here in Spain. Then there is a box to include the tax that has been already paid in the UK to avoid paying taxes twice! We do it for many of our clients so, If you want to contact us to prepare your Anual Income Tax Returns, do not hesitate to contact us on or by telephone 965705502.

      Thank you!

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