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What happens if a landlord does not declare rental income?

Posted by Michel B. on 06/09/2019

The Tax Agency has been working for months to bring to light those homes that are rented, but not declared. Coinciding with this year’s income campaign, the agency warned 700,000 citizens, who could have a leased property, the need to meet their tax obligations.

Tax advantages

Landlords can enjoy a 60% rent deduction on the IRPF declaration, provided that the property is rented as habitual residence and declared to be financed. Last April, coinciding with the start of the income campaign, the Tax Agency advised that homeowners who had not declared their home could not apply the reduction in the income campaign.

In the event that the landlord regularizes his situation with the treasury before the Treasury “hunts”, if he has the right to qualify for the deduction. A criterion that has caused all kinds of opinions to be raised. While some argue that, if you are up to date with tax obligations, the owners can avail themselves of the reduction; others think the opposite.

Given the confusion between the different Superior Courts of Justice, the matter has reached the Supreme Court. The high court has admitted an appeal of the Administration requesting clarification of the Personal Income Tax Law, in relation to the returns declared by the taxpayers.


In the event that it is not declared and the Treasury detects it, together with the payment of the corresponding taxes (without reductions), it is necessary to face the corresponding sanctions for not being up to date with the payment of the tax obligations.

If at the time of declaring a home, the Tax Agency understands that it does not correspond to the real activity of the property, the charges will consist of the payment of the amounts not declared plus a penalty, quantified between 50 and 150% of the amounts that have not been filed before the Treasury.

Detect fraud, a simple task

In many cases, landlords are surprised that the Treasury easily discovers fraud. These types of situations may be uncovered for reasons that can often go unnoticed: early breakage of the contract, the tenant decides to declare the rent or be registered, among other reasons.

At the moment in which the Treasury crosses the data with those provided by the tenants and the lessors, the fraud is detected.

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