Welex, your accountant, tax adviser and lawyer on one roof, is pleased to provide insights into the recent regulatory updates issued by the Spanish Tax Agency regarding the submission of quarterly income tax for those non-residents who get rental incomes in Spain and don’t have a permanent establishment, effective from the first quarter of 2024. These regulations specifically impact quarterly declarations.

 

New updates on rental income tax declarations for non-residents in Spain

 

The new Spanish Tax Law introduces a distinction between two scenarios:

  • Tax declaration to be fulfilled by a taxpayer receiving income from the lease of properties located in Spanish territory with a single payer: income derived from the lease, originating from the same payer and the same property (e.g., when a property in Spain is rented to a single tenant), may be aggregated and reported quarterly, provided there is a written Spanish rental agreement in place.
  • Tax declarations to be handled by a taxpayer receiving income from the lease of properties located in Spanish territory with multiple payers: henceforth it has to be grouped annually, whereby a single declaration encompasses all income and expenses. This discontinues the previous practice of quarterly aggregation, eliminating the need for declarations to be submitted on specific dates (i.e., April, July, October, or January of the following year). The deadline for electronic submission will be within the first twenty days of January 2025.

However, it is important to note that our law firm in Marbella will continue to request documentation related to Income and Expenses corresponding to quarterly rents within the established deadlines. This approach allows our proficient multilingual tax advisors to conduct calculations, provide detailed breakdowns, and confirm the tax amount with clients. Consequently, clients benefit from quarterly monitoring, facilitating informed decision-making regarding Spanish tax obligations and mitigating any potential surprises at year-end.

For any inquiries regarding the tax responsibilities associated with your property in Spain, please do not hesitate to contact our law firm, Welex, your trusted partner for accounting, tax advisory, and legal services in Spain.

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