Filing Your Income Tax Return in Spain
As tax season approaches, over 24 million taxpayers in Spain must prepare to file their IRPF (Personal Income Tax Return). The Spanish Tax Agency (Agencia Tributaria) has set specific deadlines for submitting tax declarations for the 2024 fiscal year:
📅 April 2 – June 30, 2025: Online submission of Income and Wealth Tax returns.
📅 May 6 – June 30, 2025: The Tax Agency can assist with tax returns by phone (appointments available from April 29).
📅 June 2 – June 30, 2025: In-person tax return assistance at Tax Agency offices (appointments available from May 29).
Among the many obligations, declaring rental income is one of the most important for property owners. Here’s what landlords in Spain need to know.
Who Needs to Declare Rental Income?
Anyone who has resided in Spain for more than 183 days in a year or whose main economic activity is in Spain must file a tax return. This includes income from:
✔ Rental properties
✔ Capital gains
✔ Lottery winnings & cryptocurrency investments
How to Declare Rental Income on Your Tax Return
If you rent out a property, you must report these earnings to Hacienda (the Spanish Tax Agency). However, landlords can also deduct certain expenses to reduce their tax liability. Here’s how the process works:
1️⃣ Identify the Rented Property
Clearly specify the rental property in your tax declaration, providing details such as the address and the rental purpose.
2️⃣ Declare Your Rental Earnings
You must report all rental payments received, including any additional income from the property.
3️⃣ Deduct Eligible Expenses
Landlords can reduce their taxable income by claiming deductible expenses, such as:
💰 Rental contract costs (e.g., agency fees)
🔧 Maintenance & repairs (excluding home improvements)
🏡 Depreciation of assets (e.g., replacing appliances)
🏛 IBI (Property Tax), municipal fees, community expenses
🏦 Mortgage interest (if applicable)
Understanding Rental Tax Reductions
The 60% tax reduction applies only to long-term rentals where the property is used as a primary residence. Short-term or holiday rentals do not qualify for this reduction.
Declaring a Part-Time Rental Property
If your property is rented only part of the year, you must separate two periods in your tax declaration:
🏠 Rental Period: Deduct expenses proportionally to the rental duration.
🚪 Vacant Period: Even if the property isn’t rented, Hacienda applies an “imputed rent” tax, assuming you could be earning income from it.
For tax filing, ensure you include the cadastral reference number and correctly classify the rental type:
✔ “Available and rented” – for long-term rentals
✔ “Other income” – for short-term/holiday rentals
If the property is co-owned, each owner must declare their portion of the income and expenses unless they file a joint declaration.
Need Expert Real Estate Advice?
At Alcaidesa Property, we help investors navigate the real estate market in Costa del Sol. Whether you’re buying, selling, or renting, we provide expert guidance on legal and tax matters.
📞 +34 604 482 109
📩 info@alcaidesa.property
🌍 www.alcaidesa.property
This is intended for guidance only. For more information about taxes in Spain, please reach out to a tax advisor for support on how to file your taxes.
Source: Infobae