People who are tax residents in Spain and who bought property in Spain in 2025 need to know how to correctly declare the purchase on their tax return.
It is mandatory to declare the purchase of a new home on your tax return, even if it doesn't generate income and it’s your main home. According to the Spanish Tax Agency, if you have made a profit of more than €1,000 from the sale or have lost €500 in capital gains, you must file an income tax return.
This is both to avoid problems with the tax authorities and possibly to take advantage of potential tax deductions.
READ ALSO: Do I have to file my annual tax declaration if I just arrived in Spain?
In Spain you file taxes between April and June for the previous year. This year you have until June 30th to file your income tax return, known as the declaración de la renta, for all income and financial information related to 2025.
Declaring a property you use as your primary residence
The form has many different sections related to different parts of income and life situations. Your property purchase should be included under the real estate section, typically on page 15. You will need to provide the following information:
- The price you paid (Boxes 1826 and 1830)
- The cadastral reference (Boxes 1819 to 1821)
- When you bought the property (Boxes 1824 and 1825)
You will also provide:
- The location and address of the property
- The percentage of the property you own, if you bought with a partner for example
- If it's your primary home or you rent it out
READ ALSO: Is a joint or a separate tax return better if you're a couple in Spain?
Deductions you'll be able to apply for
If you purchased your property last year you may be able to also apply for several deductions, including those for young people or changes you made to your home to make it more energy efficient.
You may also be able to access deductions for IBI payments (similar to council tax), notary and registration expenses, as well as mortgage related fees.
If you bought the property before 2013 and it’s your primary residence, deductions could reach up to 15 percent of the amounts invested.
Possible deductible expenses include:
- Notary fees
- Property registry
- Stamp duty or AJD
- Bank fees, if you applied for a mortgage
- Real estate agency fees and appraisals
All of this depends largely on where you live in Spain, as each region has different rules on what you can deduct and what you can’t.
If this is your first time filing (and even if it’s not, as legislation changes regularly) it’s best to check with your gestor to see what deductions you can apply for, it could save you a lot of money in the long run, even with your gestor fees.
READ ALSO: 11 mistakes to avoid when filing your Spanish tax return
Declaring a property you rent out
If the property you bought isn’t for your primary residence and you rent it out, the way you complete your tax form will be slightly different.
In this case, you must declare any rental income made. To do this, you need to go to the 'Apartados declaración' (declarations section in the upper left part of the form.
Next, click on 'Datos Económicos' (Economic Data) and select 'Bienes inmuebles' or real estate. Register the property in the box below and indicate what you use it for. For example
In this case it would likely be Renting out or property used for economic activities.
You may be able to deduct certain expenses too such as community fees, home insurance, maintenance costs and mortgage interest.
If the tenant uses the property as their primary residence, you may also be able to benefit from a 60 percent reduction on the net income.
Again, it’s best to contact your gestor to find your what you deduct depending on your individual circumstances and where you live.
Declaring a property you bought as a second home
If you use the property as your second home or holiday home and don’t rent it out, you must also declare this fact to the tax authorities.
In this case, you will need to pay two percent of the property's cadastral value. As mentioned, this is true even if you don’t rent the property out or make any income for it. Essentially you are being charged for the potential to rent it out.
In this case, you will not be able to claim any deductions for a second home that you don’t rent out.
Comments