Tax Office Annual Tax Control Plan for Non-Resident Property Owners in Spain (2025)

Every year, the Spanish tax authorities publish their Annual Tax Control Plan (Plan Anual de Control Tributario), outlining key areas of focus for audits and compliance checks. Among other guidelines, we have extracted those that affect non-resident property owners. Below is a summary of the key measures introduced in the 2025 plan.

Increased Scrutiny on Rental Income and Property Sales

The Spanish tax office (Agencia Tributaria) has announced that it will intensify audits on non-residents who own property in Spain but fail to declare rental income or capital gains from property sales. This means:

• Greater enforcement against non-resident landlords who do not declare rental income from properties they own in Spain.
• Stricter controls on capital gains tax declarations for non-residents who sell their Spanish properties.

For non-residents renting out property in Spain, it is mandatory to file Modelo 210 for rental income on an annual basis (since 2024). Similarly, capital gains tax from property sales must be declared through Modelo 210. If undeclared income is detected, property owners could face fines, interest charges, and retroactive tax assessments.

Wealth Tax Compliance Checks

Additionally, the tax office has signaled an increase in audits related to the Wealth Tax (Impuesto sobre el Patrimonio) for non-residents. Spain applies a wealth tax on real estate and other assets held in Spain by non-residents, depending on the region and asset value. However, in certain regions such as the Balearic Islands, Comunidad Valenciana, and Andalucía, the current exempt threshold is high, meaning most property owners will not be affected. Those who declare Wealth Tax under "obligación real" (for assets held in Spain) should ensure compliance to avoid potential penalties.

New Procedures for Dividend Tax Refunds

For non-residents receiving dividends from Spanish companies, the tax office will implement new procedures in line with the EU Directive 2025/50 (FASTER Directive). This directive aims to standardize and accelerate the process of refunding overpaid withholding tax on dividends received by non-residents.

While the directive is expected to be fully implemented by 2030, Spain will begin adapting its IRNR (Non-Resident Income Tax) refund procedures in 2025, meaning that changes could affect how tax refunds on dividends are processed.

What This Means for Non-Resident Property Owners

With these new enforcement measures, non-residents who own property in Spain should:

• Ensure that all rental income is properly declared using Modelo 210.
• Comply with capital gains tax obligations when selling property.
• Review Wealth Tax obligations if applicable.
• Stay informed about changes to dividend taxation if they receive Spanish-source dividends.

How IberianTax Can Help

At IberianTax, we specialize in making non-resident tax compliance simple and hassle-free. Our platform guides you step by step through Modelo 210 for rental income and capital gains, ensuring full compliance with Spanish tax laws.

If you have any questions about your tax obligations or need assistance with filing, visit www.iberiantax.com to get started today.