Hacienda making it tougher to avoid paying tax on rental properties

Arnau Cañellas, the delegate for the State Tax Agency in the Balearics, says that part of the fraud that has been detected is due to the collaboration with the government in accessing the database of properties registered for the tourist tax but which had not been declared for rent to the Hacienda.

When tax declarations were required for 2015, the Hacienda announced that it would be focusing on these rentals and sent out an internet message to taxpayers which read: "According to data available to the State Tax Agency, you have advertised the rental of property in various media, including the internet. We would remind you that, in the case of having received rental income, this should be included in the declaration as well as any type of income which should be taxed and that does not appear in the fiscal data."

Although the penalties can be stiff, Cañellas explains that 60% of offenders who had been advised, made declarations with the appropriate income and so avoided sanctions.

The Hacienda made use this year of data from property websites and town halls, among others.