Important Updates to Your Non-Resident Rental Income Tax

February 19, 2024

Important Updates to Your Non-Resident Rental Income Tax

Attention all non-resident property owners in Spain! If you rent out your Spanish property, we have some exciting news that will make your tax reporting process a whole lot easier. Starting from the 2024 tax year, a significant regulatory update allows you to report rental income annually, marking a departure from the previous requirement for quarterly reporting. In this blog post, we'll delve into the details of this game- changing update and what it means for property owners like you.

Under the new regulation detailed in Orden HAC/56/2024, non-resident property owners in Spain are now required to report and pay taxes on rental income just once a year. This change aims to simplify the tax filing process and reduce the administrative burden for international property owners. The filing period for income earned in 2024 is set from January 1 to January 20, 2025, with an earlier deadline of January 15, 2025, for those opting for direct debit.

Impact on property owners

For non-resident property owners who rent out their Spanish properties, this update streamlines the tax reporting process significantly. Instead of having to file quarterly tax returns several times a year, you'll now only need to file one annual return for rental income. This means less paperwork and fewer deadlines to manage, making it easier to stay compliant with Spanish tax laws.

Let's illustrate the impact of this update with a practical example. Consider a property owner who rents out their Spanish property for 300 days of the year and keeps it empty for the rest. Under the previous rules, they would have had to file five tax returns—one for each quarter the property was rented out and one annual return for the period it was empty. With the new regulations, the process is simplified to just two annual returns—one for rental income and another for imputed income on the days the property was not rented out.

Key Takeaways

The annual rental income reporting update is a game-changer for non-resident property owners in Spain. It not only simplifies the tax reporting process but also reduces the administrative burden associated with quarterly filings.

With the introduction of annual rental income reporting, non-resident property owners in Spain can look forward to a more streamlined and efficient tax reporting process. By simplifying administrative procedures, this regulatory update aims to make life easier for property owners and ensure compliance with tax obligations.

Filing Your Non-Resident Property Taxes in Spain

At IberianTax, we’re here to help you get clarity on your non-resident property taxes in Spain. Our user- friendly online tax filing platform is tailored specifically for non-resident property owners, streamlining the intricate task of managing non-resident property taxes to ensure accuracy, simplicity, and security. Whether you need to submit Imputed Income, Rental Income, or Capital Gains Tax returns using the Modelo 210 (Form 210), we've got you covered.

With IberianTax, filing your tax return is a breeze, even if you're unfamiliar with Spanish tax regulations. Our dedicated team provides complimentary support to ensure your tax return is filed accurately, providing you with peace of mind every step of the way.

When it comes to non-resident property taxes, trust IberianTax to be your dependable ally in simplifying the tax filing process, allowing you to fully savour the joys of your Spanish property with confidence.

Join us today by signing up for your FREE IberianTax account and we’ll send you a convenient reminder for when your non-resident taxes are due to be paid.

Rental Income Spain non-residents Modelo 210