Income Tax Campaign: A comprehensive guide for Argentinians residing in Spain

April arrives, and with it, one of the most important events for any resident of Spain: the Income Tax Campaign. For the Argentine community, this process is not simply a matter of submitting tax information. The specific characteristics of assets remaining in Argentina, the volatility of the peso, and the existence of international tax agreements necessitate a detailed analysis.

If you have lived in Spain for more than 183 days or have the center of your economic or family interests here, you are a tax resident. This means that the Spanish Tax Agency wants to know your worldwide income. At MBT Abogados, we explain how to declare your assets in Argentina without overpaying and in compliance with regulations.

The calendar: Key dates

The campaign to declare income earned during the previous year follows this schedule:

April 8: Start of the online presentation.
May 6: Start of telephone service.
June 1: Start of the presentation at the Tax Agency offices (appointment request from May 29 to June 29).
June 30: Submission deadline.

Declare rental income from Argentina in Spain

Many Argentinians own property in their country of origin. For Personal Income Tax (IRPF), these properties are taxed in two ways depending on their use:

1) Rented properties

If you have a rented apartment in Buenos Aires, Cordoba or anywhere in the world, that income is real estate capital gains.

Calculation: You must declare the rent received, but you can deduct the expenses necessary to obtain that income: ABL, expenses (if paid by the owner), repairs, insurance and even the amortization of the property (3% of the construction value).
Limitation: The 60% reduction for rental income from primary residences that exists in Spain does not apply to properties located outside the European Union. Therefore, you will be taxed on the full net income.

2) The concept of "Presumed Income" (Income Imputation)

This is where most mistakes are made. If you own a property in Argentina that is vacant, or you only use it when you visit, or a family member lives there rent-free, the tax authorities consider that property to generate a "theoretical benefit" for you.

It is calculated by applying 1.1% or 2% to the cadastral value. Since Argentina does not have a "cadastral value" as understood in Spain, the Tax Agency usually takes 50% of the acquisition value. It is a minimum income, but one that must be declared.

3) Shared ownership with parents or siblings

It is very common in Argentina for children to be listed in the deed of their parents' house to facilitate future inheritance (the famous "bare ownership" or condominium).

If this applies to you and you are listed as the owner of 25% or more of your parents' house in Argentina, you must declare it in Spain. This applies both to presumed income and on Form 720 if it exceeds €50,000, even if you don't use the house or receive any income from it. Ignoring this based on "common sense" is a frequent mistake that the Spanish Tax Agency (Hacienda) easily detects.

You can find out more about Model 720 in our post Why do you have to declare your assets in Argentina if you live in Spain?

Property sales and the "Exchange Rate Difference"

Sale of property in Argentina by a resident of Spain: If you sold a property in Argentina, you must declare the capital gain or loss. This is where currency plays a crucial role.

The Spanish tax authorities require that all calculations be done in euros.

You must convert what you paid for the apartment when you bought it (years ago) to euros, according to the exchange rate at that time.
You must convert the current selling price to euros, according to the exchange rate on the day of the sale.

The problem with the Argentine peso: Due to inflation and devaluation in Argentina, it's very common for capital gains in Spain to appear unrealistic when converting historical pesos to euros. It's vital to have a professional adjust these values according to the regulations on "exchange rate differences" to avoid unfair taxation.

Remote work for foreign clients: How is it taxed?

It is very common for Argentinians residing in Spain to work as freelancers or employees for companies in the US, Argentina, or other countries, receiving their fees in foreign bank accounts. As a tax resident here, this income is considered employment income and must be included in your general income tax base, just as if you were working for a Spanish company. Failing to declare this income under the belief that "the money doesn't enter Spain" is a significant risk, as the Spanish Tax Agency has the power to tax your worldwide income regardless of where the bank account receiving the payment is located.

If you work for a foreign company, we remind you that you must also be registered with Social Security in Spain, either as a self-employed worker or through other schemes, to avoid problems with labor inspections.

Inheritances and donations: Clarity above all

There's a myth that an inheritance from Argentina is subject to income tax. This is incorrect. Inheritances are taxed under the Inheritance and Gift Tax (ISD). If you received an asset last year and have already paid the ISD in your Autonomous Community, you won't have to pay income tax again on the received capital.

However, there are two side effects on personal income tax:

Returns: If you inherited an account that generated interest or a field that yielded profits since you acquired it, those profits are subject to Income Tax.
Future capital gains: The value you declare for Inheritance Tax will be your "acquisition value" for the future. If you declare a very low value now to pay less Inheritance Tax, when you sell the property in the future you will have a very high capital gain on your Income Tax return.

You can find out more in our posts Inheritances abroad: taxes and procedures in Spain y Donations received from abroad: procedures and taxes in Spain

Savings and interest: the impact of devaluation

Many residents hold savings in Argentina (in pesos or dollars). The interest generated by these accounts is considered investment income. It must be included in the Spanish tax return.

An important technical point: if you have a dollar account and the euro weakens against the dollar, you can make a "currency gain" simply by having the money there, even if you haven't moved it. Conversely, if you have pesos, you'll most likely incur tax-deductible losses.

Argentina-Spain Double Taxation Agreement

This agreement is the legal mechanism that prevents you from paying twice for the same rent.

The general principle is: Argentina has the right to tax your assets there, but Spain (where you reside) also taxes your global income. To compensate, Spain allows you to claim the International Double Taxation Deduction.

How it works: If you paid the corresponding tax on a rental in Argentina, we will deduct that amount from what you owe in Spain on your Spanish tax return. You will never pay double, but you will pay the higher of the two amounts.

Examples of common situations

Case A: Renting in Palermo

Situation: Martín lives in Madrid and owns an apartment in Palermo (Buenos Aires). He earned €6,000 in rent during the year. He paid €1,000 in property taxes and building fees. In Argentina, the equivalent of €500 in taxes was withheld.
On his tax return: Martín declares an income of €5,000 (€6,000 - €1,000). The tax in Spain on that €5,000 would be, for example, €950. Martín subtracts the €500 already paid in Argentina. Result: He pays €450 in Spain.

Case B: The empty property in Rosario

Situation: Lucía owns a house in Rosario that she doesn't rent out. She bought it for the equivalent of €100,000.
For Income Tax purposes: Since there is no cadastral value, 50% of the purchase price (€50,000) is used. A rate of 1.1% is applied, resulting in a "presumed income" of €550. Lucía will be taxed on this €550 in her savings income, even though she hasn't seen any of the property.

What happens if the result is "to enter" (to pay)?

If your tax return shows a positive balance, you owe that amount to the Tax Agency. Don't worry, you don't have to pay immediately: the payment is usually due by June 30th, which is the end of the tax filing period.

Además, Hacienda ofrece facilidades para que este desembolso no afecte tu economía familiar de golpe:

Payment in two installments: This is the most common option. You can pay 60% when you file your tax return (or by June 30th) and the remaining 40% in November. Best of all, this payment plan is interest-free.
Direct debit: You can leave your account number (IBAN) and the Tax Office will automatically debit the account on the last day of the campaign, preventing you from missing the deadline.
Extraordinary deferrals: If even with the installment plan you cannot meet the payment, you can request a deferral with late payment interest, provided that economic and financial difficulties are justified.

Important: To set up direct debit payment, the declaration must be submitted a few days before the closing date (usually by June 26), since after that date the payment must be made using a payment code (NRC) or directly at the bank.

How can we help you?

International taxation requires precision. Converting currencies, applying treaties, and understanding deductions can be overwhelming. At MBT Abogados, we specialize in legal and tax bridges between Argentina and Spain. We ensure you comply with the Spanish Tax Agency by optimizing your tax bill to the fullest.

Would you like us to analyze your case before the tax season ends? You can contact us by email or Whatsapp.

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Frequently Asked Questions (FAQs) / Argentinians and income tax returns in Spain

If I already pay taxes in Argentina, why do I have to declare it in Spain?
As a tax resident in Spain, you must pay taxes on your worldwide income. The Double Taxation Agreement prevents you from paying twice: what you have already paid in Argentina is deducted from what you owe here, and you only pay the difference if the Spanish tax rate is higher.
Do I have to declare the savings I bring from Argentina?
The capital saved is not considered income and is not subject to income tax. However, the interest generated by that money before it is transferred, or any gains from exchange rate differences if the euro's value changes in your favor during the financial transaction, are taxable.
What happens if a family member uses my property in Argentina without paying me?
The tax authorities consider it presumed income. Even if you don't receive any money, a "real estate income imputation" (generally 1.1% of its value) is applied simply because you or a third party have the property at your disposal free of charge.
Do I need to declare my ANSES pension in Spain?
Yes. Foreign pensions are considered employment income, just like a salary. If they exceed the legal minimums (which vary depending on the number of payers), you are required to include them in your annual income tax return.
I received an inheritance in Argentina, do I need to report it on my tax return?
The inheritance itself is not subject to Personal Income Tax (IRPF), but rather to Inheritance Tax (ISD). However, any subsequent income generated by these assets (such as rental income) is subject to Income Tax. Furthermore, if the value exceeds €50,000, you must file Form 720. The ISD return must be filed within 6 months of the death.
How does the tax authorities find out about my income in Argentina?
Through the OECD's CRS standard, Spain and Argentina automatically exchange financial information. Concealing assets abroad can result in penalties of up to 150% of the unpaid tax amount plus late payment interest.
What happens if the result shows "I owe money" and how can I do it?
If the return is positive, the payment is usually processed on June 30th. You can split it into two interest-free installments: 60% when you file your return and the remaining 40% in November. The most convenient option is direct debit, so the Tax Agency will automatically debit your account.