The tax agency makes a decisive move and focuses on these Spaniards: don't risk it

Hacienda has intensified its monitoring of rentals. It has done so by emphasizing the obligation of landlords and tenants to correctly declare these incomes in the Income Tax Return.

Not fulfilling this obligation can lead to significant penalties. Landlords who rent out their properties must include the income obtained from the lease in their Income Tax Return.

Obligations of landlords and tenants: Hacienda won't warn again

These are considered real estate capital gains and must be reflected in the annual return. Additionally, they can deduct expenses related to the property, such as property tax, community fees, repairs, and insurance, as long as they are duly justified.

Meanwhile, tenants also have the obligation to declare the amounts paid for rent in their Income Tax Return. This is especially relevant if they wish to access tax deductions that some autonomous communities offer for renting a primary residence.

Consequences of not declaring rent: you'll have to pay

Not declaring rental income can result in penalties from Hacienda. Fines vary according to the severity of the infraction:

• Minor infraction: When the undeclared amount is equal to or less than 3,000 euros and there is no concealment, the penalty corresponds to 50% of the undeclared amount.
• Serious infraction: If the defrauded amount exceeds 3,000 euros or there is concealment, the fine ranges from 50% to 100% of the undeclared amount.
• Very serious infraction: In cases of fraud or use of fraudulent means, the penalty can vary between 100% and 150% of the undeclared amount.

In addition to the fine, the landlord will lose the possibility of applying the 60% reduction on the net income. This will happen if it is the tenant's primary residence.

How Hacienda detects undeclared rentals

Hacienda has several methods to identify undeclared rentals, such as cross-referencing information. It demonstrates this by comparing the data from landlords' and tenants' declarations. Additionally, it can analyze the consumption of utilities like electricity and gas in the property.

It can also do so by verifying if the landlord has deposited the security deposit with the corresponding body of their autonomous community. On the other hand, it has the option to review rental ads on digital platforms or find out through anonymous reports or from the tenant themselves.

These mechanisms allow the Tax Agency to detect possible frauds and ensure compliance with tax obligations. Don't try to be clever and fulfill your obligations.