Taxman probes rentals

Apr 29, 2016  Jack Troughton

THE SPANISH tax authorities have launched an investigation of income derived from the property rental market.

Money earned from renting out homes should be declared in the same way as income earned from foreign pensions or assets held abroad.
And it is understood Spain’s Tax Agency will target websites advertising property for rent, including holiday lets, in a crackdown on undeclared income.
It is not the first time the taxman has pursued landlords over rental income. In 2012, there were checks on houses declared as being empty but showing high utility consumption.
It is estimated almost half, just over 49%, of all home rentals in Spain – around 1.3 million properties, are not declared to the tax authorities. The vast majority are rented out to third parties, some 367,000 provided free or at a peppercorn rent to relatives.
However, whether it is to boost income or help pay a mortgage, officials maintain failure to declare the cash involved was ”fraud”.