What to Do if You Miss the Spanish Tax Deadline: A Step-by-Step Guide

Whether you're living abroad or own property in Spain, filing taxes on time is a crucial responsibility. But what happens if you miss the Spanish tax deadline? Missing the deadline can lead to penalties and interest charges, but there are ways to minimize the consequences. This step-by-step guide walks you through the actions to take if you’ve missed the Spanish tax filing deadline as a non-resident.

1. Know your Tax Obligations for Non-Residents

First, it’s essential to know what kind of taxes you’re expected to file as a non-resident. The main taxes non-residents have to deal with in Spain include:

• Imputed Income tax: If you own property in Spain you are required to pay this tax even if you do not rent it out. The tax due is calculated taking into account the cadastral value of the property, the Municipality in which it is located and the days it has been empty or available for personal use (to sum up: the days it has not been rented during the tax year). 

The filing period for submitting the imputed income tax runs from 1st January to 31st December of the following year. For example, the 2023 tax year can be filed from 1st January 2024 to 31st December 2024, being the deadline 31st December 2024.

• Rental Income tax: In case you own a property in Spain and you rent it out, please note that you need to declare the rental income tax for the days it has been occupied. In this regard, from 2024 onwards the filing period has changed. Currently, the income earned in 2024 has to be submitted on an annual basis. The filing period runs from 1st January to 20th January of the following year. For the 2024 tax year, the deadline will be 20th January 2025.

Regarding the 2023 tax year and previous years, in case you did not submit on time your rental income tax, please note that the rental income had to be submitted on a quarterly basis on the first 20 days of April, July, October and January of the following year. 

For example, if the property was rented in July, August and October the rental income should be submitted the first 20 days of October (for the months of July and August) and the first 20 days of January of the following year (for the month of October).

• Capital Gains Tax: This applies if you sold your property located in Spain. The capital gains tax should be submitted within 4 months after the sale of the property. 

For example, if you sold your property located in Alicante on 5th July 2024, you will have until 5th October to declare the capital gains tax. 

Each tax has its specific filing dates, which you need to be aware of to avoid missing future deadlines.

2. File Your Late Return As Soon As Possible

When you realize that you have missed the deadline, it’s crucial to act quickly. Filing your tax return as soon as possible demonstrates your willingness to comply with Spanish tax regulations. Here are a few reasons why timely action is vital:

• Mitigating Penalties: The Spanish tax system imposes varying penalties based on how late you file. The sooner you file, the lower these penalties will be. For example, if you file within three months of the deadline, you may face only a 3% surcharge. However, this increases to 15% if you file after 12 months have elapsed.
• Avoiding Interest Charges: Interest accrued on unpaid taxes starts to accrue after 1 year from the original due date. The longer you delay filing, the more you will owe in interest. By filing your return promptly, you can limit the amount of interest you will have to pay.
• Preventing Complications: Filing late can complicate your tax situation, potentially leading to audits or increased scrutiny from the tax authorities. By filing your return without unnecessary delay, you can avoid these complications.

3. What Are the Penalties for Filing Late?

Once you file late, be prepared for penalties. Here’s what you can expect:

If you file within the first 12 months:

A 1% surcharge is applied for each month of delay after the voluntary filing deadline.

Example: If the voluntary deadline to file the imputed income tax for the 2022 tax year was 31st December 2023, and the return is filed in July 2024 (7 months late), a 7% surcharge will apply to the amount due.

If you file more than 12 months late:

A fixed 15% surcharge is applied, regardless of how many months have passed. Additionally, late-payment interest is charged.

Example: If the return is filed in July 2025 (more than 12 months after the deadline, which is 31st December 2023), a 15% surcharge will be imposed, along with the applicable late-payment interest.

Surcharge reduction:

If the surcharge is paid within the deadline set by the Spanish Tax Office (after the total amount is notified), a 25% reduction can be applied to the surcharge, provided that the remaining amount is paid in full.

4. How Does the Tax Office Notify You About Surcharges? 

In case you submit your tax returns late, you will initially only pay the outstanding amount due.

Within 1 to 2 months, the TaxOffice will send a notification to your registered Spanish home address regarding the imposed surcharges for the late filing. 

Initially, you will receive a letter known as the “propuesta de liquidación.” This is an informative letter that outlines the total surcharge amount you need to pay.

A few weeks later, you will receive a second letter, referred to as “liquidación,” along with the payment instructions.

Please be aware that you can only settle the payment after receiving the second letter. In this regard, it is possible to pay the surcharge from abroad. 

5. Need Help? Here's How We Can Assist You

Navigating the Spanish tax system can be complex, especially for non-residents unfamiliar with the procedures and legal requirements. If you’re unsure about how to proceed, at IberianTax we can help you. 

Furthermore, it is important to keep in mind, after resolving your overdue tax situation, to avoid missing deadlines in the future. Here are some tips:

• Reminders: IberianTax will send you reminders every time the filing period approaches.
• Clarify your doubts: Our support time will help you to clarify all your doubts, making it easier for you to understand the Spanish tax system.
• Register for notifications: Sign up for updates from the Agencia Tributaria to receive timely information about filing deadlines and any changes to the tax laws. 

Missing the Spanish tax filing deadline is not the end of the world, but it’s important to act quickly to minimize the financial impact. By filing as soon as possible, understanding the penalties, and working with the tax authorities, you can resolve the situation effectively. And with the right strategies in place, you’ll avoid repeating the same mistake in the future.

If you’re feeling overwhelmed, don’t hesitate to reach out to us. IberianTax can provide personalized advice and help you navigate the complexities of Spanish tax laws with confidence.