Renting your holiday home and Spanish Tax Authorities

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    • #57163
      begur100
      Participant

      Hello
      Anyone has the experience with the Spanish Tax Authorities when it comes to tax paying over rental incomes of a Spanish holiday home. If the agent renting your home is situated abroad of Spain and so is your bank account collecting these renting incomes. How can the Spanish Tax Authorities find out about your renting incomes. Everything is then organized outside of Spain.

    • #113669
      Chopera
      Participant

      They can look at your energy and phone bills, and if nobody is registered as being resident at the property they may assume it is being rented and will charge you “tax”. The level of “tax” will have nothing to do with how much rent you have actually received – they will invent a figure. This is of course theoretical – but they can do it.

    • #113670
      GarySFBCN
      Participant

      If time = money, I wonder if the amount of time and energy people dedicate to avoid paying their fair share of taxes is equal to the amount they save?

    • #113671
      DrRobert
      Participant

      Hang on, I’ll just ask Phillip Green…..£1.2 billion bonus. Zero tax bill. H’mm difficult one.

    • #113687
      angie
      Blocked

      I love that reference Dr Robert, am glad you didn’t call him by his Knighthood title which I think he should lose 😉 They like to call it Tax Avoidance in his case but it’s plain and simple Tax Evasion through unclosed as of now ‘legal’ loopholes. 😡

    • #113691
      Fuengi (Andrew)
      Participant

      @begur100 wrote:

      Hello
      How can the Spanish Tax Authorities find out about your renting incomes. Everything is then organized outside of Spain.

      I can think of about 4 different ways.

    • #114104
      Anonymous
      Participant

      Yes, they can find out, and even if they can’t freeze your bank account they can slap an embargo on your property. Recently I have read several articles in the Spanish press about the tax authorities blitzing undeclared rentals in certain areas. As the state gets ever more desperate for cash I expect them to do more of this (rather than cut back on things like chauffer-driven official cars for even lowly politicians).

    • #114105
      Fuengi (Andrew)
      Participant

      @mark wrote:

      Yes, they can find out, and even if they can’t freeze your bank account they can slap an embargo on your property. Recently I have read several articles in the Spanish press about the tax authorities blitzing undeclared rentals in certain areas. As the state gets ever more desperate for cash I expect them to do more of this (rather than cut back on things like chauffer-driven official cars for even lowly politicians).

      problem is mark, they cannot fire the chaffeurs…. 😕

    • #114113
      katy
      Blocked

      @begur100 wrote:

      Hello
      Anyone has the experience with the Spanish Tax Authorities when it comes to tax paying over rental incomes of a Spanish holiday home. If the agent renting your home is situated abroad of Spain and so is your bank account collecting these renting incomes. How can the Spanish Tax Authorities find out about your renting incomes. Everything is then organized outside of Spain.

      Good point 😀 They don’t have the resources to do a complete investigation for every ex-pat. I don’t know anyone who declares it. They would need to prove it was not yourself visiting or your aged Mother or other family :mrgreen: There is a lot of scaremongering
      goes around from time to time that the spanish authorities are checking property rental websites etc….utter rubbish, put out by people with a vested interest who want to charge you an inflated rate to sort out your bill 👿
      Before I get any “holier than thou” comments, remember that non-residents already pay an imputed rental tax, whether they rent or not. Very few owners are making any profit out of rental now as there is massive oversupply and fewer punters.

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