New Setback from Hacienda to Spaniards on Income Tax Return: Be Very Careful

The Tax Agency has issued a stern warning to owners of more than one property. The truth is that it mandates declaring all properties in the 2025 Income Tax Return. Failing to do so can lead to serious consequences, including significant fines and penalties.

The Tax Agency Won't Warn Again: Beware of Owners and Their Second Residence

If you have a second home, you must include it in your Income Tax Return. Even if you don't rent it out and only use it occasionally, the Tax Agency considers that it generates imputed income.

This means that, even if you don't earn direct income, you must declare a percentage of the property's cadastral value. Generally, 2% of the cadastral value is applied, or 1.1% if it has been reviewed in the last ten years.

If the second home is rented out, the income obtained must be declared as real estate capital income. It is important to reflect both the periods when the property was rented and those when it remained vacant. In the latter, imputed income also applies.

What Fines Can Be Imposed for Not Complying with the Law?

Not declaring a second residence can be considered a tax violation. Penalties vary according to the severity:

• Minor infraction: If the undeclared amount is less than 3,000 euros, the fine will be 50% of that amount. The maximum is 1,500 euros.
• Serious infraction: If it exceeds 3,000 euros and concealment is detected, the fine can range from 50% to 100% of the omitted amount.
• Very serious infraction: In cases of fraud, fines can range from 100% to 150% of the defrauded amount.

In addition to fines, the Tax Agency can demand payment of unpaid taxes. Not only that, but it will also charge you the corresponding late payment interest.

What Will Happen If You Ignore This from the Tax Agency

Ignoring the obligation to declare a second home can seriously complicate your financial and legal situation. The Tax Agency has advanced tools to detect undeclared properties and cross-references information with other administrations to identify potential fraud.

Non-compliance can result in significant financial penalties and, in extreme cases, criminal liabilities. To avoid these serious consequences, it is essential to comply with tax obligations and declare all properties in the 2025 Income Tax Return.

If you have doubts, it is advisable to consult with a tax advisor. Alternatively, you can go directly to the Tax Agency for proper guidance.