Spain and France Accountants blog

Obligation to declare

All non-residents with Spanish property which is not rented out throughout the year, are obliged to submit annual tax declarations. The deadline is 31st December following the end of each tax year.

For example, if you purchased a property in 2024, your first tax declaration will be due by 31st December 2025.

What are the repercussions if I do not declare ?

When you eventually sell your property as a non-resident, 3% of the sales value is automatically withheld from you. Because in many cases this will be more than the actual capital gains tax due, you could be due a substantial refund.

The refund process is slow and the authorities may make a detailed review of the tax history of your property. If you have not submitted annual tax declarations, this could lead to delays in issuing the refund.

In addition, you may be subject to Tax Office fines for late- or non-submission of the annual tax returns.

How is the annual tax calculated ?

Deemed income tax for non-rented properties

This is income tax on the “imaginary” rental income that you have on the property, and is calculated in reference to the rateable value (valor catastral) of the property.

The tax rate for non residents is 19% for residents of EU, Norway and Iceland and 24% for residents of other countries. The taxable amount is 1.1% of the catastral value of your property, if this has been updated in the previous 10 years. Otherwise, the percentage increases to 2%.

So for instance, if your property has a rateable value is 50,000 Euros then the annual tax payable for the tax year 2020 is 105 Euros for EU, Norway and Iceland residents and 132 Euros for others.

How does the situation change if I rent out my property ?

If your property is also rented out, you are required to file a tax declaration for your rental income.

This declaration needs to be filed on an annual basis and the filing deadline is 15^th January following the tax year when there is tax payable or 20^th January for a negative tax declaration.

The tax rate is 19% for residents of the EU, Norway and Iceland, with all rental expenses (including mortgage interest) being deductible for tax purposes. For residents of other countries, the tax rate is 24% with the rental income received being fully taxable with no deductions. However please do note the recent Supreme Court ruling which allows for appeals to be filed to ask the Tax Office to accept expenditure. See our blog article https://www.europeaccountants.com/blog/important-change-in-tax-law-for-owners-of-spanish-property-who-live-outside-the-eu/

The taxable amount is 1.1% of the catastral value of your property, if this has been updated in the previous 10 years. Otherwise, the percentage increases to 2%.

In the case of joint ownership, do we need to submit more than one tax declaration ?

Yes, each joint owner of the property is required to submit a separate return.

Do I need to be registered for Spanish tax in order to submit tax declarations ?

Yes, property owners do need to obtain a Spanish tax code (NIF).

When you purchased your property, you will have been assigned a foreigners’ ID number (NIE). The NIF will be the same number, but it is necessary to physically go into the Tax Office to register.

In the majority of cases, property owners will already be registered for tax. We will carry out an initial online check on the Tax Office database to verify this.

What are your charges to submit my tax declaration ?

Our charges for 2025 for all clients for each declaration are as follows:

Single property owner: 81 Euros

Reduced rate for couple ownership: 103 Euros

This includes:

Drawing up your draft tax calculation and submitting to you for approval.

Online submission of the declaration and order for the payment of the tax due directly from your Spanish bank account.

Our reduced rate for joint ownership is for those who are married or in a registered civil partnership

Just drop us an email or visit our website for assistance with your Spanish non-residents’ tax declarations !

What information do I need to supply for you to prepare my tax declarations ?

NIE of each owner of your property;

The full address the property;

The date and cost of purchase;

The rateable value (valor catastral). This will be on your latest rates (IBI) bill; for recently purchased properties, the lawyer/ agency who dealt with the sale may also be able to provide you with this information.

Name, nationality, date and place of birth, and current home address of each owner of the property.

If your property was rented during the year, please complete the attached template. Expenditure is deductible for tax purposes only for residents of the EU.

The IBAN of your Spanish bank account, for the purposes of direct debit payment of the tax due.

If you have any further questions, please do not hesitate to contact us ! You will also find informative articles on non-residents’ tax on our blog and website www.europeaccountants.com/spain/

A clear guide for clients of Europe Accountants operating in Spain

1. What is VERI*FACTU?

The VERI*FACTU system is a regulatory standard introduced by the Agencia Estatal de Administración Tributaria (AEAT) in Spain that establishes how electronic invoicing systems (billing software) must operate to guarantee that invoicing records are secure, traceable, unalterable and auditable. Agencia Tributaria

Under the underlying legislation (namely Ley 11/2021 de medidas de prevención y lucha contra el fraude fiscal and Real Decreto 1007/2023 of 5 December 2023) the obligation is framed.

In practice, VERI*FACTU obliges businesses to use certified or compliant invoicing software (or use the AEAT-provided tool) to issue their invoices, maintain records of issuance, and in many cases submit invoice data (or at least make it verifiable) to the AEAT. Agencia Tributaria

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2. Why is it important for your business?

For clients of Europe Accountants operating in Spain (or with Spanish operations), this change is significant because:

• It affects how your invoicing software must comply with Spanish tax law. If your software is not compliant, you may face risks of penalties or difficulties with audits.
• It increases transparency and traceability of invoices, meaning that issuing invoices will no longer be simply a matter of printing a “standard” invoice – you must ensure the underlying system meets the legal requirements (integrity, preservation, traceability, legibility).
• It aligns with the broader EU push for digitalisation of tax and invoicing systems (e-invoicing and real-time/near-real-time reporting) so being ahead of this gives a competitive advantage.
• For non-compliance: software vendors and businesses face defined penalties and liabilities if their systems are not compliant.

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3. What are the key dates & obligations?

Here are some of the critical deadlines and phases you should know:

• By 1 January 2026: All legal entities (companies) that are subject to Corporate Tax (Impuesto sobre Sociedades) must use invoicing systems compliant under the VERI*FACTU regulation (unless they are already under the SII system).
• By 1 July 2026: Self-employed persons (autónomos), branches, non-resident permanent establishments become obliged.
• From 29 July 2025: The manufacturing/distribution of invoicing software must only offer certified/VERI*FACTU-compliant versions (for new clients).
• Note: Some operators already using the SII (Immediate Supply of Information) system are exempt from part of the VERI*FACTU obligation (because they are already supplying detailed invoice information).

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4. What must your invoicing system do to comply?

If you are subject to VERI*FACTU, your invoicing or billing system must satisfy a number of technical and functional requirements, including:

• Ensure immutability (records cannot be altered without trace).
• Ensure traceability (every invoice, and cancellations/rectifications, must be identifiable).
• Ensure accessibility, legibility, preservation of invoice records for the period required by tax law.
• Issue invoices via software with a unique numbering series, chained hash, QR code (in many cases) enabling verification.
• Option of real-time or near-real‐time submission of invoice data to the AEAT (depending on modality) when using the VERI*FACTU mode. Agencia Tributaria
• Software vendors must provide a “responsible declaration” (declaración responsable) of compliance. Agencia Tributaria

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5. What you should do now – practical steps for our clients

At Europe Accountants we recommend the following steps to ensure you are ready and compliant:

1. Review your current invoicing software
   • Check whether your system is certified or claimed to be compliant with VERI*FACTU.
   • If you use a non-certified or outdated system, begin planning migration or upgrade.
2. Check your business’s category and obligations
   • Determine whether you fall under the immediate obligation (company) or the later one (self‐employed).
   • Check whether you are already under the SII system (which may exempt you from parts of VERI*FACTU).
3. Engage with your software provider/vendor
   • Ask for proof of compliance: certification, responsible declaration, technical specification.
   • Confirm that reporting/submission to the AEAT (if required) is supported.
4. Prepare your accounting and internal documentation
   • Update your process, train staff, ensure your network of invoicing (for example POS, ERP, e-commerce) is aligned.
   • Plan the transition to avoid last-minute issues: system downtime, incorrect invoices, audit risk.
5. Contact us at Europe Accountants for guidance
   • We can review your software, advise on compliance strategy, help you select certified solutions or adapt your existing one.
   • We will monitor the deadlines, help with the documentation and communication with the AEAT.

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6. How Europe Accountants supports you

As your trusted advisor operating in Spain and across Europe:

• Our team is continuously tracking the latest from the AEAT and Spanish tax-law developments (including the VERI*FACTU regulation).
• We provide hands-on support in evaluating your invoicing/ERP systems and ensuring the fiscal compliance of your financial processes.
• We help minimize risk, avoid penalties, and ensure that your transition is smooth and tailored to your business size and sector.

Contact us:
Website: https://www.europeaccountants.com/spain/
Email: info@europeaccountants.com

Please feel free to reach out to schedule a consultation or ask any questions about your invoicing compliance in Spain.

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7. Useful legal text links

• AEAT official page on VERI*FACTU systems (questions & answers): AEAT – Sistemas VERI*FACTU Agencia Tributaria
• AEAT analysis of the regulation: AEAT – Regulation of billing systems (RRSIF) – December 11 2023 Agencia Tributaria
• Real Decreto 1007/2023

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We hope this article provides a clear overview of the VERI*FACTU obligation and how Europe Accountants can assist you in ensuring compliance and peace of mind. Should you wish to discuss your specific case in more detail, please contact us directly.

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Disclaimer: This article is for general informational purposes only and does not constitute legal or tax advice. For advice specific to your situation, please consult our team or your legal/tax advisor.

We hope that all is well with you ! 

As you might have heard, there’s been a landmark Spanish court ruling which means that owners of Spanish property who are not EU-resident will now be able to claim a deduction for all rental-related expenditure in their annual rental income tax declaration (Modelo 210).  Attached are some general details- please remember that these are for your general guidance only and not a substitute for proper professional advice.

There is also the possibility to make a back claim for every year up to four years previously, so that would mean that you can now make a claim back to FY 2021.  

Note that the claim is for expenditure only, and the tax rate (for now) remains the same at 24%.

What the ruling means if you own property in Spain (as a non-EU resident)

Please feel free to contact us for further information or assistance !

Until now

• If you live outside the EU/EEA (for example, in the U.S., UK, Canada, Australia…), Spain has been taxing your gross rental income from Spanish property at 24%, without allowing you to deduct expenses like:
  • mortgage interest
  • repairs and maintenance
  • local property taxes (IBI)
  • insurance premiums
  • management or agent fees
• By contrast, EU/EEA residents could deduct these expenses and only pay tax on their net rental income, at a lower 19% rate.

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What the court decided

• The Spanish National Court (SAN 3630/2025, September 2025) ruled that denying deductions to non-EU residents is discriminatory.
• It violates:
  • the EU principle of free movement of capital (Article 63 TFEU), and
  • the non-discrimination clause in Spain’s tax treaties (for example, with the U.S.).
• Therefore, non-EU residents must also be allowed to deduct legitimate expenses against their Spanish rental income.

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What changes for you

✅ You may now be able to file or amend returns to claim deductions for property-related costs.
✅ This could significantly reduce your taxable base, lowering your Spanish tax bill.
✅ If you overpaid in the past, you might claim a refund, as long as the year is still within the statute of limitations of 4 years.

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What hasn’t changed

❌ The ruling does not change the 24% tax rate applied to non-EU residents. (EU/EEA residents continue at 19%.)
❌ The decision is not final yet. Spain’s Supreme Court may review it. Until then, the tax office may continue to deny deductions unless you appeal.

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What you can do now

1. Review your past Spanish non-resident returns (IRNR) — check if expenses were disallowed.
2. Calculate potential refunds — work out whether it’s worth filing a rectification claim.
3. Gather evidence of expenses — invoices, contracts, property tax bills, bank statements.
4. Watch for further updates — the case could reach the Supreme Court.

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In short: this ruling is a big step toward ending tax discrimination against non-EU property owners in Spain. While not yet final, it opens the door to deductions and possible refunds.

• The case involved a non-EU resident (a U.S. taxpayer) who owned a property in Spain and declared rental income under the Spanish Non-Resident Income Tax (IRNR). Under prevailing practice, non-EU residents were denied deductions for expenses associated with the rental property (repairs, interest, taxes, insurance, etc.)
• The taxpayer argued that this denial was discriminatory and violated both EU law (free movement of capital / non-discrimination) and the tax treaty between Spain and the United States.
• The National Court agreed. It held that the Spanish domestic rule excluding non-EU residents from expense deductions is incompatible with the principle of non-discrimination under EU law (notably Article 63 TFEU) and relevant treaty provisions (e.g. Article 25 of the Spain-U.S. tax treaty).
• Accordingly, the Court ruled that non-EU residents should be allowed to deduct expenses linked to rental property in Spain in the same manner as EU/EEA residents.

Key consequences & limitations

Issue	What changes	Caveats / considerations
Deductibility of expenses	Non-EU (third-country) non-residents can deduct costs (repairs, interest, insurance, local taxes, management fees, etc.) when calculating taxable rental income under IRNR.	This is subject to appeal. The State may bring the case to the Supreme Court, so the ruling is not yet final.
Tax rate	The ruling does not automatically change the difference in tax rates. Non-EU residents currently pay a 24% flat rate on rental income, whereas EU/EEA residents benefit from a 19% rate on net income.	The decision deals only with deductions, not with equalizing rates. Any change in the rate would require further judicial or legislative action.
Refund / amendment of past returns	Affected taxpayers may seek to rectify past IRNR returns and claim refunds (for “undue payments”) for years still within the statute of limitations.	The possibility to recoup overpaid taxes depends on whether the statute of limitations has expired and the administrative tax authority’s acceptance.
Equal treatment / non-discrimination	This ruling is a step toward eliminating tax discrimination between EU and non-EU property owners, by aligning Spanish practice with EU law and treaty principles.	It may set a precedent, but full stability will depend on whether higher courts (Supreme Court) confirm it and whether Spanish tax law is adjusted accordingly.

Please feel free to contact us for further information or assistance !

It’s almost time again for the annual Spanish residents’ income tax declarations, known as La Renta !

The Spanish tax year ends on 31^st December. Income tax returns for the year 2023 must be submitted by 1^st July 2024. Returns can be filed online from 3^rd April onwards.

Taxpayers are obliged to declare their Spanish and worldwide income, and we will apply the provisions of the relevant double taxation treaties.

The Spanish Tax Office, Agencia Tributaria, offers the possibility of payment of your tax in two instalments, the first on 1^st July and the second at the beginning of November. There is no interest or penalty charge payable if you take this option.

Your tax payments can be made by direct debit, which saves you the inconvenience of having to queue at your bank during the busy period. In order to qualify for this, the return must be submitted online by 26^th June.

If you have any further questions, please do not hesitate to contact us on returns@europeaccountants.com . You will also find informative articles on non-residents’ tax on our blog and website www.spainaccountants.com .

Wealth Tax in Spain is complex because it varies from one region (Comunidad Autónoma) to another, is subject to change year-on-year and is highly affected by politics !

All taxpayers have a reduction of up 300,000 Euros against their main residence in Spain. In addition, there are exemptions and personal allowance as follows according to region:

Andalucia Wealth Tax is zero but ITSGF may apply- see below

Aragon 400,000

Asturias 700,000

Baleares 700,000

Canarias 700.000

Cantabria Wealth Tax is zero but ITSGF may apply- see below

Castilla-La-Mancha 700,000

Catalunya 500,000

Madrid Wealth Tax is zero but ITSGF may apply- see below

Comunidad Valenciana 500,000

Extremadura Wealth Tax is zero but ITSGF may apply- see below

Galicia 700,000. 50% reduction in tax payable and ITSGF may apply.

La Rioja 700,000

Navarra 550,000

Murcia Wealth Tax is zero but ITSGF may apply- see below

By law, the maximum total income tax and Wealth taxes payable is 60% of taxable income, with a maximum reduction in Wealth taxes due of 80%.

Wealth Tax is payable on an individual basis so for married couples declarations are individual and main property and personal allowances above are applied per person.

ITSGF- Temporary Tax on High Wealth

This recently introduced tax may not be as temporary as it sounds, and has been introduced as an attempt to override the regions which have zero Wealth Tax.

It only applies to individuals whose net assets exceed 3.5 million Euros approx, if this applies to you please contact us and we will provide further details.

Obligation to declare

All non-residents with Spanish property which is not rented out for every quarter during the year, are obliged to submit annual tax declarations. The deadline is 31st December following the end of each tax year.

For example, if you purchased a property in 2022, your first tax return will be due by 31st December 2023.

What are the repercussions if I do not declare ?

When you eventually sell your property as a non-resident, 3% of the sales value is automatically withheld from you. Because in many cases this will be more than the actual capital gains tax due, you could be due a substantial refund.

The refund process is slow and the authorities may make a detailed review of the tax history of your property. If you have not submitted annual tax declarations, this could lead to delays in issuing the refund.

In addition, you may be subject to Tax Office fines for late- or non-submission of the annual tax returns.

How is the annual tax calculated ?

Deemed income tax for non-rented properties

This is income tax on the “imaginary” rental income that you have on the property, and is calculated in reference to the rateable value (valor catastral) of the property.

The tax rate for non residents is 19% for residents of EU, Norway and Iceland and 24% for residents of other countries. The taxable amount is, in general, 1.1% of the rateable value of your property.

So for instance, if your property has a rateable value is 50,000 Euros then the annual tax payable for the tax year 2020 is 105 Euros for EU, Norway and Iceland residents and 132 Euros for others.

How does the situation change if I rent out my property ?

If your property is also rented out, you are required to make a tax declaration for each quarter in which you have rental income.

The tax rate is 19% for residents of the EU, Norway and Iceland, with all rental expenses (including mortgage interest) being deductible for tax purposes. For residents of other countries, the tax rate is 24% with the rental income received being fully taxable with no deductions.

The taxable amount is, in general, 1.1% of the rateable value of your property.

In the case of joint ownership, do we need to submit more than one tax declaration ?

Yes, each joint owner of the property is required to submit a separate return.

Do I need to be registered for Spanish tax in order to submit tax declarations ?

Yes, property owners do need to obtain a Spanish tax code (NIF).

When you purchased your property, you will have been assigned a foreigners’ ID number (NIE). The NIF will be the same number, but it is necessary to physically go into the Tax Office to register.

In the majority of cases, property owners will already be registered for tax. We will carry out an initial online check on the Tax Office database to verify this.

What are your charges to submit my tax declaration ?

Our current charges (2023 rates) for all clients, before 21% VAT, for each declaration (quarterly or annual) are as follows:

Single property owner: 79 Euros

Reduced rate for joint ownership: 100 Euros

This includes:

1. Drawing up your draft tax calculation and submitting to you for approval.
2. Online submission of the declaration and order for the payment of the tax due directly from your Spanish bank account.

Please note that the reduced rate for joint ownership is for those who are married in which both spouses are non-residents. Otherwise, you will be charged to file two separate single tax declarations.

What information do I need to supply for you to prepare my tax declarations ?

1. NIE of each owner of your property;
2. The full address the property;
3. The date and cost of purchase;
4. The rateable value (valor catastral). This will be on your latest rates (IBI) bill; for recently purchased properties, the lawyer/ agency who dealt with the sale may also be able to provide you with this information.
5. Name, nationality, date and place of birth, and current home address of each owner of the property.

If you have rental income in any quarter, please provide a schedule of the income and expenditure for the quarter. Expenditure is deductible for tax purposes for residents of the EU.

The IBAN of your Spanish bank account, for the purposes of direct debit payment of the tax due.

If you have any further questions, please do not hesitate to contact us on admin@europeaccountants.com . You will also find informative articles on non-residents’ tax on our blog and website www.spainaccountants.com .