Undeclared Rental Income? Big Fiscal Brother Is Watching You!

Hacienda has started a campaign, alerting those that advertised their property for rental purposes in 2015, e.g. through portals like AirBnB or similar web agents, that they have knowledge of your ad and would like to remind you that any income that resulted from that, needs to be declared on your Renta over 2015.

When you make use of the ´borrador´ for your declaration that Hacienda prepares, making use of data facilitated by banks, employers etc. with regards to ´retenciones´, the following message might pop up:

«De acuerdo con los datos de que dispone la Agencia Tributaria, usted ha realizado anuncios de alquiler de inmuebles en diferentes medios publicitarios, incluido internet. Le recordamos que, en caso de haber percibido rentas por alquiler, deben incluirse en la declaración, así como cualquier tipo de renta por la que deba tributar y no conste en los datos fiscales».

This campaign coincides with the disappearance of the possibility to deduct ** rent on your Renta declaration, one of the changes in this year´s Renta.

We would like to remind you that Hacienda also has access to invoices from utilities companies, so can easily cross check whether a property has actually been lived in, or not. Either through them, or through the Rental declaration of your tenants, who are obliged to provide their fiscal domicile on their tax declaration.

** This is what Hacienda states with regards to rent deductions on the 2015 Renta.

Para el inquilino que alquiló el año pasado desaparece la deducción estatal -se mantiene la del 10,05% para los que arrendaron antes siempre que sus ingresos no superen los 24.107 euros anuales-. Para el propietario se eliminan los topes en función de la edad del inquilino y se establece una fija del 60% del rendimiento declarado por el arrendamiento. También puede deducirse todos los gastos que haya necesitado el piso.

Translation: For those tenants that started a rental contract in 2015, the state rent deduction disappears, for those that already rented before that and whose income is below 24.107 euros, it remains at 10,05%. For landlords top limits with regards to age of tenants are eliminated and a fixed income of 60% of the amount the tenants declared will be established. Landlords can also deduct all costs involved, necessary to rent out the property.

Note from me – keeping in mind the usual requirements with regards to proof of actual costs made, acceptable to Hacienda.

Note II – many autonomous regions DO still allow for tenants to deduct a percentage of the rent paid for a ´vivienda habitual´ on their Renta declaration, as long as you identify the landlord on the declaration (his/her NIF in box 743 on the form) and the ´fianza´ has been paid to the relevant autonomous authorities.

Please note: The information provided is based upon our understanding of current legislation. It is not legal advice but is provided freely to enable you to be properly informed. We recommend that if you are considering taking action, you should seek professional advice.