PROPERTY SEARCH
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If you've been selling online in Spain, the taxman may already have your details as the tax return season opens
Platforms like Wallapop, Vinted, eBay and Milanuncios are now required to report sellers who exceed €2,000 in sales to the Spanish Tax Agency
Spain's income tax return season is upon us once again, with the 2025-2026 campaign officially opening on April 8. This year though, the Spanish Tax Agency, known as the Agencia Tributaria, is paying particularly close attention to people who've been earning money through online platforms, and if you've been doing a bit of selling on Wallapop, Vinted, eBay or Milanuncios, it's well worth making sure you understand where you stand.
The agency is sending out a total of 3.56 million reminder notices to taxpayers over the coming months, covering everything from online sales and cryptocurrency trading to holiday rentals and foreign income.
Of those, 437,000 notices relate specifically to income from digital platforms, whether that's selling goods, providing services or renting out a property or vehicle through an app or website.
The key threshold for online sellers to be aware of is either 30 transactions per year or €2,000 in total sales value. Platforms are now legally required to report sellers who hit either of those figures to the tax authorities, which means the Agencia Tributaria is likely to already have a pretty clear picture of your activity before you even sit down to file.
Cryptocurrency traders are also firmly in the frame this year, with 1.24 million notices planned for people with crypto-related income. The agency already holds data on balances, acquisitions, transfers and exchanges provided by resident entities.
It's also worth noting that the deadline for filing Form 721 for virtual currencies held abroad with balances over €50,000 was March 31, so if that applies to you and you haven't already dealt with it, it's time to get some advice quickly.
Holiday rental landlords are another group under close scrutiny. The tax agency has access to data on rental days, commissions and amounts withheld by platforms, so there's very little room for anything to slip through unnoticed.
On the flip side, landlords renting to permanent residents in high-demand areas could be eligible for reductions of up to 90% of net rental income if they've reduced their rental price by 5%.
The notices themselves are sent out in three stages, as Tax Agency Director General Soledad Fernández explained at the campaign launch. The first arrives when you download your tax data, flagging income that needs to be declared. The second comes as a warning during the filing process to help avoid errors and omissions. The third arrives after filing but while corrections can still be made, pointing out any discrepancies between what's been declared and what the agency already knows.
The good news is that nearly half of taxpayers who receive one of these letters do go on to correct their return voluntarily, which avoids the heavier penalties and interest charges that can follow a formal investigation.
Financial Advice Issues for Expats in Spain
I have been a Qualified Financial Adviser for almost 35 years now. 25 years in the UK for major institutions such as Natwest, RBS and Royal London. I have been in Spain giving expats financial advice now for 10 years and it is quite remarkable the different approaches as well as advice that are required for an expat now living in Spain. Blacktower is a company that has specialised in providing the best solutions for its clients living outside the UK for 30 years also.
The currency issue is always high on the agenda and a discussion for the long-term future has to be taken onto account. Questions like What will happen if one partner dies? Will the other remain in Spain? What about other family members? What Inheritance tax provisions do you have in place? The list goes on and on.
Existing portfolios and investments that were the mainstay of portfolios in the UK may now be obsolete. An example of this is quite often tax efficient products in the UK like ISA’s and previously held TESSA’s: PEP’s actually have low growth rates and provide no tax advantage to a Spanish fiscal resident.
Existing pension holdings either paid by the state or private pensions built up through working lifetimes are topics that have to be covered. Many expats have lots of small pensions from many ex employers and can be confused by the communications and administration in dealing with them. At Blacktower we specialise in advising on how to consolidate and bring all these pensions together in one place.
Bank accounts and investments in Spain always bring up lots of questions too. Quite often the small print associated with financial products in Spain is in Spanish this can make it very difficult even if you have a good grasp of the language. Understanding Jargon in English is sometime difficult enough. I provide clear easy to understand letters and documents in English so that you fully understand any terms and conditions before making a decision.
Advice on tax efficiency is just as important and offering good returns. There are products available exclusively for Spanish expats that can provide invaluable benefits. Having a good base knowledge of the tax implications both now and in the future is an essential ingredient to making a sound decision.
Click for more information about Keith Littlewood.
The above information was correct at the time of preparation and does not constitute investment advice and you should seek advice from a professional adviser before embarking on any financial planning activity.
This communication is for information purposes only and it does not constitute advice or a recommendation. The value of investments can go up as well as down, and investors may not get back the full amount invested. The Blacktower group of companies operates across multiple jurisdictions, each authorized under its respective regulatory license. For further information, please refer to the relevant regulatory page.
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