Quick Guide for Non-Residents with Properties in Spain: Avoid Penalties with These Fiscal Steps
If you're a non-resident in Spain and own a property, it's important to understand your tax obligations to avoid penalties. Whether your property was rented out or not during 2023 or 2024, there are key deadlines you must meet to declare your taxes. Below, we explain what you need to do and when.
Non-Resident Property Owners with Non-Rented Properties in 2023
If your property in Spain was not rented during 2023, you must file the Non-Resident Income Tax (IRNR) before December 31, 2024. Even if you didn’t generate rental income, the Spanish Tax Agency imposes a deemed income tax on non-rented properties. This means you must pay tax on an estimated value based on your property's cadastral value.
What is Deemed Income?
Deemed income is an amount calculated as a percentage of your property's cadastral value, representing its "potential" to generate income, even if it was not rented. Typically, this value is 1.1% or 2% of the cadastral value, depending on whether or not it has been updated recently.
Non-Resident Property Owners with Rented Properties in 2024
If your property in Spain was rented during 2024, you will need to file a return for the IRNR on rental income. The deadline for this declaration is between January 1 and January 20, 2025.
What should you keep in mind?
If the property was regularly rented in 2023 and previous years, you would have filed the IRNR on a quarterly basis. The declaration to be submitted between January 1 and January 20, 2025, will correspond to the rental income earned throughout 2024. The obligation changes from quarterly to annual.
Tax Rates: If you are a resident of the European Union, Iceland, or Norway, you will be taxed at 19% on net rental income (income after deducting expenses). For residents outside the EU, Iceland, or Norway, the tax rate is 24% on gross rental income, with no deductions allowed.
What happens if you don’t meet your tax obligations?
Failure to file these taxes could result in financial penalties, including late fees and fines from the Spanish Tax Agency. The longer you delay regularizing your situation, the higher the penalties may become.
Conclusion
If you are a non-resident and own property in Spain, it's crucial to meet the following obligations:
File the IRNR return for deemed income before December 31, 2024, if your property was not rented in 2023.
File the IRNR for rental income between January 1 and January 20, 2025, if your property was rented in 2024.
Meeting these deadlines will help you avoid penalties and late fees.
Do you need help managing your taxes in Spain as a non-resident?
At Yayimartin Asesores, we can assist you in fulfilling your fiscal obligations easily and effectively. Contact us, and we’ll guide you through the process.
