At EBF Consulting, we assist non-resident property owners every week with their tax obligations in Spain.
Many of them make mistakes, especially if they use their property for holidays or rent it out seasonally.
Below we explain the most common ones, based on the regulations in force in 2024:
1. Assuming they don’t need to declare because they already pay taxes in their home country
If you own a property in Spain, you are required to declare and pay tax in Spain, even if you live and pay taxes elsewhere.
This applies whether you rent the property out, use it for personal holidays, or leave it empty.
2. Failing to declare imputed income when not renting out the property
Even if you do not earn rental income, the Spanish Tax Agency (Hacienda) imputes a notional income for personal use or availability of the property.
You must file Form 210 for imputed income, and you have until 31 December of the following year to do so.
We are currently preparing the 2024 imputed income returns.
The taxable base is generally calculated by applying 1.1% or 2% of the cadastral value of the property, depending on the local council.
The tax rate is 24% of the taxable base, or 19% if you are a tax resident in an EU or EEA country.
Failure to declare this income may result in penalties, interest, and surcharges.
3. Not filing Form 210 for rental income in January
Since 2024, if you rent out your Spanish property, you must file Form 210 on an annual basis, during January of the following year.
You must declare all rental income earned during the previous calendar year.
This is separate from the imputed income declaration and must be filed even if the property was only rented out for part of the year.
4. Incorrectly applying deductions
If you are a tax resident in an EU or EEA country, you may deduct rental-related expenses such as:
- Property tax (IBI)
- Community fees
- Mortgage interest
- Insurance
- Repairs
However, you can only deduct expenses in proportion to the days the property was actually rented out.
Many non-residents mistakenly deduct 100% of expenses, even if they only rent during the high season.
Unsure about your situation as a non-resident?
At EBF Consulting, we specialise in international tax matters.
Contact us and we’ll help you meet your tax obligations in Spain—clearly, correctly, and without surprises.