New features in the declaration of rental income

The return period using form 210 is now annual, instead of quarterly.

Order HAC/56/2024, of 25 January, which amends the ministerial orders that approve the 210 self-assessment forms, has introduced an important new feature in the Non-Resident Income Tax return for income from real estate capital accrued from 1 January 2024 with a taxable income: the grouping period is now annual instead of quarterly. This means that, from now on, only one single annual return will have to be filed for the positive income from real estate capital obtained during the previous year, instead of the current quarterly returns. The deadline for filing this annual return will be from 1 to 20 January of the year following the year of accrual.

In any case, it should be remembered that in the Non-Resident Income Tax, each rental income obtained is a separate accrual of income. This means that the income is calculated individually for each rental, with no possibility of offsetting positive income from a rental with negative income (negative net income due to expenses incurred or depreciation). After calculating the yield of each individual rental, the yields are grouped annually according to their result: positive (to be paid) or negative (zero quota). The deadline for filing a zero tax liability return from 2024 onwards will coincide with the deadline for tax returns with a payable result.

With this system, the Tax Agency seeks to have better control of the positive and negative returns of each property and their taxation in an annual period, in order to facilitate their possible revision and correction.

Therefore, despite the change, it is advisable to continue to collect rental information on a regular basis, either quarterly or more frequently in the case of short-term leases. This will allow to keep track of the yield of each rental and to know periodically the estimated tax to be paid, as well as facilitating the organisation of the annual tax return.

At Lozano Schindhelm we are at your disposal to advise you on the calculation, preparation and filing of tax returns relating to the income from the rental of your property in Spain. We also assist you in the filing of non-resident income tax for the imputation of income (own use of real estate) and, if necessary, in the regularisation of previous years, submitting the appropriate forms.

Autor: Fernando Lozano
Autor: Claudia Cascant
Autor: Andrea Quiles