Non-Resident Property Owners: Don’t Miss the 2023 and 2024 Tax Returns Deadlines!

As the end of 2024 draws near, non-resident property owners in Spain must prepare for one of the most important obligations that comes with owning property: filing tax returns. Whether it's imputed income tax or rental income tax, meeting these deadlines is crucial to avoid penalties and ensure compliance with Spanish tax laws. In this guide, we'll break down the types of taxes non-residents must file, the upcoming deadlines, and how IberianTax can make the filing process faster, easier, and more affordable.

Understanding Non-Resident Taxes in Spain

If you're a non-resident property owner in Spain, you're likely aware that taxes apply even if you don't live in the property year-round. Spain requires non-residents who own property to pay taxes on imputed income (a tax levied on the property for personal use or if it remains vacant at any time) and rental income (a tax levied on money earned from renting the property out, long-term or short-term).

Here's a quick breakdown of the key non-resident taxes:

1. Imputed Income Tax: This applies to non-residents who own property in Spain but don't rent it out and use it purely for personal use, or it lays vacant. The Spanish government views this as potential income and levies a tax on the value of the property.

2. Rental Income Tax: For non-residents who rent out their property, the rental income tax applies. You'll be taxed on the income generated from renting the property, and it's crucial to keep up with your rental records to ensure accurate filing.

Imputed Income Tax Deadline for 2023 is 31st December 2024

For non-residents who do not rent out their Spanish property, the imputed income tax must be filed annually by 31st December. This tax is based on the cadastral value of your property (a government-assigned value used for tax purposes) and is calculated using a percentage that differs depending on whether the property has been revalued or not.

Why File Now?

While the 31st of December may seem far off, filing early can save you from a last-minute rush. Avoiding the Christmas chaos ensures that your taxes are filed accurately and on time. Additionally, the longer you wait, the higher the risk of facing penalties for late filing. By filing ahead of time, you'll avoid the stress of missing deadlines and possible fines that come with it.

Missing the deadline can result in surcharges and penalties, which vary depending on whether the filing is made voluntarily or requested by the tax office:

• Voluntary Late Submission: If you file late without a formal request from the Spanish tax authorities, a surcharge of 1% per month of delay is applied for the first 12 months. After 12 months, the surcharge increases to 15% of the unpaid tax, along with accrued interest​.
• Requested Submission by Tax Authorities: If the tax office issues a formal request for the submission, the penalty starts at 50% of the unpaid tax and can rise to 150%, depending on the severity of the delay and the economic impact on the tax authorities​.

So, why wait until the last minute? Take the stress out of the process by using IberianTax to file early.

Rental Income Tax Deadline for 2024: 1st - 20th January 2025

If you fully or partially rented out your Spanish property in 2024, the rental income tax must be filed between the 1st and 20th of January 2025. You’re responsible for declaring the income you’ve earned from your property throughout the year and paying the necessary tax on that income.

Why Register Now?

Even though the filing window for Rental Income Tax isn’t open until January, it’s wise to start preparing your documents and income records now. Registering with IberianTax ensures that you’ll have everything in place to submit your taxes as soon as the window opens. By preparing early, you can:

• Avoid Mistakes: Early preparation gives you time to review your records and ensure that everything is in order.
• File on Time: The rental income tax deadline is shorter than the imputed income tax, so ensuring that you’re ready to file early reduces the risk of missing the deadline.
• Stay Compliant: Non-compliance with Spanish tax laws can lead to significant fines and penalties.

Common Tax Return FAQs 

I only bought my property this year, do I need to file? 

No, there’s no need for you to file this year. Your first non-resident tax return will be due at the end of 2025 unless you rented your property out during 2024. In this case, you will need to file a Rental Income tax return in the first 20 days of January 2025 for the days it was rented out. 

I only used my property privately in 2023 and didn’t rent it out. Do I need to file a tax return?

Even if you don’t rent out your property or generate any income from it, you are required to file an annual non-resident tax return to declare an ‘imputed income’ on the property.  The deadline for filing ‘imputed income’ tax for 2023 is 31st December 2024, but this can be filed now, so you can forget about it for another year!

I bought my property in 2023, what do I need to do?

You are required to file the ‘imputed income’ tax return from the purchase date to the 31st of December 2023. If you rented out your property in 2023, then you should have already submitted a rental income tax return. If you have not done so, penalties will be accruing against you, so you’d be advised to contact IberianTax to help you file this return, so you are up to date with the Spanish Tax Authorities.

I partially rented out my property and used it personally in 2023, what do I need to do now?

If you partially rented out your property in 2023, you should have filed a rental income tax return before January 2024. If you have not done so, penalties will be accruing against you, so you’d be advised to contact IberianTax to help you file this return, so you are up to date with the Spanish Tax Authorities. You will be required to file the annual imputed income tax for the days that you used the property for personal use in 2023, which must be filed by 31st December 2024. Any rental income earned in 2024 has to be filed within the first 20 days of 2025.

Why Use IberianTax? 

Filing taxes can seem daunting, especially when you're unfamiliar with Spanish tax laws. However, using IberianTax makes the process hassle-free, fast, and cost-effective. Here’s why:

• Fast and Simple Process: IberianTax’s online platform allows you to file your non-resident taxes quickly from the comfort of your home, no matter where you are in the world. With easy-to-follow instructions, you don’t need an accountant or legal advisor.
• Cost-Effective: Traditional tax advisors or lawyers can charge high fees for filing non-resident tax returns. IberianTax offers a significantly more affordable option, with prices starting as low as 34.95€. 
• We Speak Your Language: Our online tax software is available in English, German and French, so there’s no language barrier to contend with.
  Secure and Reliable: The platform is designed to keep your personal information and financial data secure. IberianTax is certified by the Spanish tax authorities (Agencia Tributaria), ensuring that your tax filings are accurate and compliant.
• No Need for an Accountant: With IberianTax’s intuitive platform, there’s no need to hire a local accountant, saving you both time and money. The step-by-step guide ensures that you can file your taxes without needing additional professional help.
• Personalised Support: Got a question? IberianTax’s customer support team is available to assist you through the process. Whether you need help calculating your taxes or ensuring your documents are correct, they’re just a click away.

Key Deadlines to Remember:

• Imputed Income Tax for 2023: December 31, 2024
• Rental Income Tax for 2024: January 1-20, 2025

Mark your calendars and make sure you don’t miss these critical deadlines. Filing on time with IberianTax ensures that you avoid penalties and stay compliant with Spanish tax laws. However, if you register with IberianTax, they will send you reminders of when your taxes are due, so you won’t miss those important dates and find yourself facing penalty fees.

File with IberianTax for a Stress-Free Experience

There’s no need to stress over tax deadlines when IberianTax is here to make the process simple and secure. Whether you’re filing imputed income tax or rental income tax, IberianTax has everything you need to file on time, avoid penalties, and ensure your taxes are compliant with Spanish law.

Don't just take our word for it—you can view our 5-star reviews on Google to see how IberianTax has helped countless property owners meet their tax deadlines quickly, easily and completely stress-free.

Start preparing today and use our free tax calculator to see how much you owe, then sit back and relax while IberianTax takes care of the rest!