Spain is one of the most attractive destinations for international property buyers. Thousands of foreigners purchase holiday homes, retirement residences, or investment properties in Spain every year. However, being a property owner in Spain comes with certain tax obligations, even if you don’t live here permanently.

One of the most important of these obligations is the Non-Resident Tax (Impuesto sobre la Renta de No Residentes – IRNR). Many foreign homeowners are unaware of this tax until they receive a notification or fine from the Spanish tax office. To avoid unpleasant surprises, it’s crucial to understand how this tax works, when it applies, and what you need to do to stay compliant.

In this guide, we explain everything you need to know about Non-Resident Tax in Spain.

What is the Non-Resident Tax in Spain?

The Non-Resident Tax is an annual tax applied to individuals who own property in Spain but are not tax residents here. The Spanish tax system distinguishes between residents and non-residents:

Residents pay income tax on their worldwide income in Spain.
Non-residents only pay tax on income obtained in Spain.

For property owners, this means that even if you only use your Spanish property for personal holidays or visits, you are considered to generate a “deemed income.” The law assumes that owning a property in Spain provides an economic benefit, regardless of whether it is rented.

Who Needs to Pay the Non-Resident Tax?

You must pay this tax if:

You own a property in Spain, but your tax residence is in another country.
You are an EU, EEA, or non-EU citizen with Spanish real estate.
Your property is either used for personal purposes or rented to tenants.

Example:

A British couple who owns a holiday home in Alicante but live permanently in the UK must pay Non-Resident Tax every year.
A German investor renting out apartments in Madrid must pay every year Non-Resident Tax on the rental income and as the owner of the property.

How is the Non-Resident Tax Calculated?

The calculation depends on whether the property is rented or not:

1. If the property is rented out

You must declare the rental income.
EU/EEA residents can deduct certain expenses (e.g., repairs, mortgage interest, insurance, community fees, utilities paid by the landlord).
Non-EU residents cannot deduct expenses and must pay tax on the gross rental income.

Tax rates:

19% for EU and EEA
24% for non-EU residents.

We can help you get the rental registration number.

2. If the property is not rented

Even if you never rent your property, Spain charges tax on an imputed (deemed) income. This is calculated as a percentage of the property’s cadastral value (valor catastral), which is stated on your local property tax (IBI) receipt.

If the cadastral value has been revised in the past 10 years, 1.1% of the cadastral value.
If it hasn’t been revised: 2% of the cadastral value.

The resulting figure is then taxed at:

19% for EU and EEA residents.
24% for non-EU residents.

Norwegian citizens (EEA) are treated the same as those from the European Union for tax purposes: they can deduct expenses and benefit from the reduced rate of 19%.

British property owners, following Brexit, are classified as “non-EU/EEA residents” for tax purposes; they cannot deduct expenses and are taxed at the 24% rate.

Example:

A French owner has a property with a cadastral value of €100,000. The imputed income is €1,100 (1.1%). If the tax rate is 19%, they must pay €209 per year.

Filing and Payment: Modelo 210

The Non-Resident Tax must be declared using Form 210 (Modelo 210). The frequency of submission depends on whether the property is rented:

For non-rented properties: One declaration per year, due by December 31st of the following year.
For rented properties: An annual declaration of rental income, to be filed within the first 20 days of January of the following year, as well as an annual declaration for periods when the property was not rented, due by December 31 of the following year.

Payment is made directly to the Spanish Tax Agency (Agencia Tributaria).

Common Mistakes Non-Residents Make

Believing no tax is due if the property is not rented – This is one of the biggest misconceptions. Even unused holiday homes generate deemed income.
Confusing cadastral value with market value – The tax is based on the cadastral value, which is usually much lower than the property’s purchase or market price.
Not filing annually – Many owners forget about the obligation until years later, facing fines and back taxes.
Incorrectly deducting expenses – Non-EU residents cannot claim deductions, but many mistakenly do so.
Missing deadlines – Late submissions may result in penalties and surcharges.

Other Taxes Non-Resident Owners Should Be Aware Of

Apart from the annual Non-Resident Tax, foreign property owners may also be subject to:

IBI (Impuesto sobre Bienes Inmuebles): Local property tax paid to the town hall each year.
Waste collection tax: a local tax paid annually or every six months, depending on the city.
Wealth Tax (Impuesto sobre el Patrimonio): Applicable if your Spanish assets exceed a certain threshold (varies by region).
Capital Gains Tax: When selling a property, non-residents pay tax on the profit made.
Withholding Tax on Sale: Buyers are obliged to retain 3% of the purchase price when buying from a non-resident seller, which is offset against Capital Gains Tax.

Why It’s Important to Get Professional Help

Spanish tax rules are complex and vary depending on nationality, double taxation treaties, and property use. A professional advisor can:

Correctly calculate the imputed or rental income.
Ensure deductions are applied properly.
File Modelo 210 on time.
Help avoid penalties for late or incorrect filings.
Offer guidance on other related taxes.

FAQs About Non-Resident Tax in Spain

I don’t rent my property. Do I still have to pay?
Yes. Even if the property is only used privately, you must pay tax on deemed income.
Can I pay the tax from abroad?
Yes. Payments can be made online or via authorised banks in Spain.
What happens if I don’t pay?
Unpaid taxes accumulate with interest and fines. The Tax Office may pursue debts through Spanish assets or international agreements.
Is there a minimum amount?
No. Even small amounts must be declared and paid.
Do double taxation treaties affect this tax?
No. Double taxation agreements usually don’t cover deemed income. However, they can affect how rental income and capital gains are taxed.

Conclusion

Owning a property in Spain as a non-resident is a wonderful opportunity, but it comes with specific tax responsibilities. The Non-Resident Tax ensures that all property owners contribute to the Spanish system, whether they rent their property or not.

By understanding the rules, filing Modelo 210 correctly, and seeking professional advice, you can avoid costly mistakes and enjoy your Spanish property with complete peace of mind.

At Albir Abogados, we provide expert advice to non-resident property owners, helping you manage your tax obligations in Spain with precision and a personal touch. Our team will carefully review every case to ensure peace of mind and full compliance with Spanish regulations, making your experience as an international homeowner truly secure.

Non-Resident Tax on Spanish Property: How It Works and What to Expect