Non-resident tax in Spain applies to every individual who owns property in Spain but is not tax resident here, whether or not the property is let. Many owners of holiday homes in Mallorca are unaware that they must file a return every year simply because they own a property. Raso Investments prepares and files non-resident income tax returns using form Modelo 210 for owners from the United Kingdom, Germany, the Nordic countries and elsewhere, and reviews past years when obligations have been overlooked.
Non-resident income tax (Impuesto sobre la Renta de no Residentes, IRNR) is a state tax administered by the Spanish Tax Agency. Each owner files individually: where a property is owned jointly, each co-owner files a separate return for their share.
Non-resident tax in Spain on a property that is not let
When a non-resident owns a property in Spain that is not let and is available for their own use, Spanish law taxes an imputed income, even though no money is received. The imputed income is calculated as a percentage of the property’s cadastral value: currently 2% as a general rule, or 1.1% where the cadastral value has been revised under a general valuation procedure in recent years. The tax is currently charged at 19% for residents of other EU and EEA states with effective exchange of tax information, and at 24% for other non-residents.
The return for imputed income is filed annually, generally during the calendar year following the year to which it refers. If the property was owned for only part of the year, the imputed income is calculated proportionally.
Rental income
If the property is let, the owner must declare the rental income received. Returns for rental income are generally filed quarterly, in the first twenty days of the month after each quarter. The tax rates are the same as above. Residents of the EU and EEA may deduct expenses connected with the rental, such as a proportional share of local property tax, community fees, insurance, repairs, management fees and depreciation, provided they are properly documented. Non-residents from other countries are taxed on the gross income without deductions. For periods when the property is not let, the imputed income rules apply.
Owners of holiday rentals should also review the licence position described on our page on the holiday rental licence (ETV).
What we review
- The ownership of the property and the share of each owner.
- The cadastral value and whether it has been revised.
- Periods of private use, rental and vacancy during the year.
- Rental income received and the documentation of deductible expenses.
- Your country of residence and the applicable double tax treaty.
- Previous years’ compliance, to identify any outstanding obligations.
- Whether a tax representative in Spain must be appointed in your case.
How we work
Each year we collect the information needed, calculate the tax for each owner, prepare the returns and file them electronically, arranging payment by direct debit from a Spanish account where possible. We keep a record of the cadastral value and documents for future years. Where returns for previous years have not been filed, we prepare them and explain the consequences of late filing, which are generally less serious when the taxpayer regularises voluntarily before being contacted by the authorities. When the property is eventually sold, the same records support the capital gains return described on our page on selling property in Spain as a non-resident.
Common mistakes
- Believing that no tax is due because the property is not let.
- Filing a single return for a jointly owned property instead of one per owner.
- Deducting expenses when the owner is not resident in the EU or EEA.
- Not declaring rental income received through platforms or managers.
- Overlooking that unpaid non-resident tax can come to light when the property is sold.
- Assuming that becoming tax resident in Spain changes nothing; residents file personal income tax instead, as explained on our page on tax residency and moving to Spain.
Other taxes for non-resident owners
Non-resident income tax is not the only obligation. Owners also pay local property tax (IBI) and, depending on the value of their Spanish assets, may be subject to wealth tax and the solidarity tax on large fortunes, covered on our page on wealth tax in the Balearic Islands. The rates mentioned on this page are those currently in force and may change. Every case is reviewed individually.
When the property is sold, the buyer’s lawyer and the notary will often ask for proof that the non-resident tax returns of previous years have been filed, and any outstanding liability can delay the completion or reduce the net proceeds. Keeping the annual returns up to date therefore protects not only against surcharges but also against problems at the time of sale. If you change your country of residence, or become resident in Spain, the obligations change and we review them with you.
Owners who hold several properties in Spain must calculate the imputed income or rental income for each property separately, and each property and owner may require its own returns. A clear annual calendar helps to avoid missed deadlines.
Frequently asked questions
I only use my villa for a few weeks a year. Do I still have to file?
Yes. The imputed income is due for the periods in which the property is available for your use and not let.
Does the Modelo 210 replace the tax return in my home country?
No. You may also need to declare the Spanish income at home. The double tax treaty determines how the tax paid in Spain is taken into account.
Can I file the Modelo 210 myself?
It is possible, but the calculations and electronic filing are not straightforward for non-Spanish speakers, and errors are common.
What if I have not filed for several years?
Voluntary regularisation is possible and generally reduces surcharges compared with action initiated by the Tax Agency. We assess the years affected individually.
Next steps
To arrange your non-resident tax returns, write to info@raso.law describing the property and how it is used: location, ownership, rental activity and your country of tax residence. We will review your case individually and reply in writing. Further information is available on our tax law page.