If you own a property in Spain—especially if you rent it out or you’re a non-resident—this is definitely something worth knowing.
Over the past few months, we’ve seen a clear trend: the Spanish Tax Authorities are paying much closer attention to property income. And this doesn’t seem to be slowing down—in fact, everything suggests that this focus will increase even more during 2026.
Why? Mainly to detect undeclared income, spot common mistakes in tax returns, and make sure everything is being declared correctly.
So, if your property in Spain generates any kind of income, keep reading—this is for you.
Why has the tax authority now turned its attention to property income?
The reality is that the Spanish tax authority has an increasing number of tools at its disposal for cross-referencing data. It is now possible to compare information from rental platforms, utility bills, land registry data and even bank transactions.
This means that situations which previously went unnoticed are now much more visible.
For example:
- Undeclared rental income (even if they are one-off or short-term)
- Tax returns with poorly justified expenses
- Properties owned by non-residents who are not declaring the imputed income
- Errors in tax forms or late submissions
But be careful — this isn’t always about deliberate fraud.
In many cases, it’s simply down to a lack of knowledge or a misunderstanding of the rules. However, from the tax authorities’ point of view, the outcome is exactly the same.
Why this is changing now?
There are several reasons behind this shift: increased digitalisation, the rise in holiday rentals, and growing pressure on the authorities to boost tax revenue. All of this has created the perfect environment for more frequent tax checks.
Rather than worrying, it’s best to take action. Now is a good time to review whether you’re declaring all your income correctly, if you’ve met your obligations as a non-resident, whether your deductions are properly supported, or if there’s anything you’ve been putting off. Because now, it really could be picked up.
Also, correcting things voluntarily is usually much easier—and cheaper—than dealing with it once the tax authorities have already started an investigation. Taking action early really does make a difference.
What happens to non-residents who own property in Spain?
One of the main issues for many non-resident property owners in Spain is simply not being aware of their tax obligations.
This often leads to penalties or fines for not declaring the property or the income generated from it.
So, what should a non-resident know? In very simple terms:
- If you rent out your property, you must declare that income
- If you do not rent it out, you must still declare a small “notional” (imputed) income
The concerning part is that many owners have gone years without filing these returns, and are now starting to receive payment demands from the tax authorities.
To help avoid this situation, at MAM Solicitors we offer our “Sweet Home” service, designed to make things simple for you. We take care of all your tax obligations and administrative matters, so you can have peace of mind and just focus on enjoying your property in Spain.
Why trust MAM Solicitors?
With more than 30 years of experience, MAM Solicitors has guided thousands of clients through real estate transactions with professionalism, clarity and security.
We are a multilingual team, prepared to assist you in your own language and to handle all paperwork on your behalf.
If you are considering buying or selling a property in Spain, or simply want expert guidance before taking the next step, our specialists are ready to help you.
Get in touch and let us make the process simple and safe for you.
