The declaration of rent in the income tax return is an obligation for both landlords and tenants. Landlords of rental properties must include the income obtained in their income tax return under the section of income from real estate capital. If they do not do so, the Tax Agency may initiate an inspection.
The penalties for not declaring rent will vary depending on the undeclared amount and concealment. They are minor if it is less than or equal to 3,000 euros without concealment, serious if it exceeds 3,000 euros with concealment, and very serious in cases of fraud.
Landlords can deduct expenses such as those arising from the formalization of the contract or necessary repairs if they want to access tax benefits. Tenants must declare the rental amount and can access regional deductions if they meet certain requirements.
The Tax Agency can detect omissions in income derived from leasing. Therefore, both landlords and tenants must fulfill their tax obligations to avoid penalties and benefit from possible deductions. The 2024-2025 Income Campaign starts on April 2, allowing for the submission of the declaration electronically.
