Tax Agency Alert to Thousands of Spaniards: You'll Get Into Trouble If You Don't Do This

The Tax Agency has issued an important notice for owners of second homes. It is essential to correctly declare these properties in the 2024 Income Tax return to avoid problems and possible fines.

Hacienda requires that all properties, including second residences, be declared in the Income Tax return. Failing to do so can result in significant penalties. The Tax Agency is intensifying its monitoring of compliance with these tax obligations.

What about Second Homes? Notice from Hacienda to Owners

Second residences, whether beach apartments or country houses, must be included in the Income Tax return. Even if they don't generate income, Hacienda considers that they produce an "imputation of income."

This means that a fictitious income is attributed based on the cadastral value of the property. The percentage applied is usually 1.1% or 2%, depending on the date of the last cadastral review.

Obligation to Declare in the 2024 Income Tax Campaign, but There are Exceptions

For the 2024 Income Tax, it is mandatory to declare all properties, including second homes. If the property is rented, the income obtained must be declared as real estate capital income. If the home is vacant, the aforementioned imputation of income will apply.

There are some exceptions to this obligation if the second home is in the process of being sold and hasn't been used during the year. Thus, it could be exempt from the imputation of income. However, these situations are specific, and it is advisable to consult with a tax advisor to determine if any exception applies in your particular case.

What Happens if We Don't Declare It?

Not correctly declaring a second home can lead to penalties from Hacienda. The fines can range from a percentage of the undeclared amount to more severe penalties in cases of deliberate omission. Additionally, Hacienda can impose surcharges and late payment interest that will increase the tax debt.

To avoid problems with Hacienda, it is recommended to thoroughly review the information of all properties before submitting the Income Tax return. You must correctly declare the use of each property, specifying whether it is rented or vacant. Consult with a professional in case of doubts about how to declare a second home.

Complying with these tax obligations is essential to avoid penalties and maintain a regularized tax situation. The Tax Agency has advanced tools to detect inconsistencies, so it is crucial to be transparent and precise in the Income Tax declaration.