Last Updated on January 7, 2025
Have you paid your IBI local tax and thought all your tax obligations were complete?
That’s not the case! Unfortunately, this is a common misconception for non-resident landlords in Spain and it could lead to non-compliance of your tax obligations. If you own property in Spain in urban areas, there is an additional tax obligation you need to address: Deemed annual tax, also known as non-resident tax. The 2024 Deemed tax deadline is coming up on 26 December! In this article, we’ll cover what you need to know to stay on top of your obligations and avoid unnecessary penalties.
What is deemed annual tax?
Deemed annual tax is a tax obligation for non-resident property owners in Spain that is paid annually. This tax applies if you own properties in urban areas. It’s calculated based on the cadastral value of the property, and it’s a requirement entirely separate from your IBI local tax payment. Note that this is a tax you need to pay even if the property is not currently being rented out.
Read: What are deemed tax returns for a property in Spain?
Who needs to file?
If you are a non-resident in Spain and own urban properties, then you must file a deemed annual tax return.
What to do if you haven’t filed before
Ideally you want to file your taxes yearly so you don’t fall behind. So in 2024, you want to aim to file for 2023. However, if you haven’t filed a deemed tax return in previous years, you can still file as far back as 2019. Note that 2024 is the last chance to file as far back as 2019. Otherwise, you may face penalties for late submission. So it’s best to stay up to date with your taxes to ensure compliance. 
When is the deadline?
The deadline for filing your 2023 deemed tax declaration is 26 December, 2024. You should ensure that all the necessary documents are prepared well in advance.
Need Help?
Navigating Spain’s tax system can be challenging, especially for non-residents. At Property Tax International, our team is here to help you understand your obligations and ensure timely and accurate filing. Ready to file your deemed annual tax? You can send your most recent IBI letter received from the local administration to info@ptireturns.com and we can start the filing process. Contact us today to get started!