How to Avoid New Penalties for Second Homeowners

New Fines for Second Homeowners in Spain

As of 2024, Spanish Tax Authorities (“Hacienda“) are cracking down on anyone with an undeclared property not being used as a main residence.

Owners who fail to declare an empty property will face fines of up to 150% of the unpaid tax amount, depending on the severity of the case.

All properties must be declared, regardless of whether they are rented or vacant.

Property owners must declare rental income as capital gains, while vacant properties must be registered as unused and taxed at 2% of their “cadastral value.” The cadastral value is a lower, official estimate of your property’s worth, which Spanish tax authorities use to determine how much tax the owner should pay based on the property type. Now, owners will be hit with a tax based on 2% of this value (or 1.1% for updated properties).

About the Fines

The Spanish tax man will be penalising property owners who do not follow this rule. Fines will range from 50% to 150% of the unpaid tax amount. The severity of the fine will depend on the circumstances of the case. Mistakes will be penalised with lower fines, but malicious or deliberate omissions will receive higher penalties.

Whether it’s collecting dust or rented out, make sure you’re declaring it, or risk being slapped with fines up to 150%