Chapter

Non-resident taxes for property owners in Spain

§ 1Three kinds of income, one return

A non-resident owner of Spanish property does not file the personal income tax return that residents file, and how Spanish tax residence is decided shows which side of the line you are on. The tests look at the days you spend in Spain and at where your economic interests lie, so an owner who spends more time there than before should check the position each year, because a change of regime changes both the return and the rules that apply to the home. The return is model 210, for income of non-residents who have no permanent business in Spain, and it covers three situations. If the home is empty or used by the owner, the law assumes an imputed income and taxes it. If the home is let, the rent is taxed. If the home is sold, the gain is taxed. The first two come back every year, and the third happens once.

The rest of this section follows that order. Modelo 210 explains the form itself.

Imputed income explains the first income and tax on rental income the second.

The sale has its own section, an overview of capital gains tax on a sale.

§ 2Who counts as a non-resident

For these taxes a non-resident is a person who is not tax resident in Spain. Tax residence depends on the time spent in Spain and on where the main centre of economic interests lies, and it is a legal test, not a matter of where the owner feels at home. A foreign owner who spends part of the year in a Spanish home may still be a non-resident for tax. If your situation is close to the line, ask an adviser to decide it before you file, because the answer changes which return you file and which rate applies.

§ 3The rates

The tax agency publishes two rates on property income. Residents of the EU, Iceland, Norway and, since July 2021, Liechtenstein pay 19%. All other non-residents pay 24%. That list does not include the United Kingdom, the United States, Switzerland or most other countries, so most English-speaking owners are in the second group. The rate is applied to a base that is gross in general, meaning that no expense is deducted. EU and EEA residents have one exception, which is explained in EU and EEA deductions.

§ 4Imputed income

Individuals who own urban property in Spain that is not used in an economic activity are taxed on imputed income. The base is a small percentage of the cadastral value: 1.1% where the value was revised recently, and 2% otherwise. No expense can be deducted. When a home is let for part of the year, the rent covers the months it was let and imputed income covers the rest.

§ 5Deadlines

The windows for filing changed for accruals from 2026. Imputed income is filed from 1 April to 31 December of the year after accrual, and annual grouped rental declarations are filed from 1 to 20 April of the year after. Tax return deadlines sets the dates side by side.

§ 6Taxes on wealth

Two further taxes can reach a non-resident with assets in Spain. Wealth tax has its own return, model 714, and the solidarity tax on large fortunes has its own, model 718. We print no thresholds for either, because we could not verify them. Wealth tax and the solidarity tax explain what each is and what to ask your adviser.

§ 7What this section does not cover

The yearly bills to the town, such as IBI and the waste fee, are separate from these taxes and are described in yearly property taxes. The tax on an inheritance or a gift is described in an overview of inheritance and gift tax.

§ 8Where this fits among the other costs

Non-resident taxes are one layer among the costs of owning. The purchase taxes are described in the chapter on the resale transfer tax and the chapter on taxes on new builds.

The municipal tax on a sale is described in plusvalía, and the fees of the professionals who handle a purchase are in professional fees.

The first pages of the section, costs and taxes and the chapter on the costs of buying, show how the layers fit together.

§ 9A representative may be required

Some non-residents must appoint a representative who lives in Spain, depending on their situation and the type of income. Ask your adviser whether you need one, because the rules differ between owners resident in the EU or EEA and owners resident elsewhere.

§ 10Common mistakes

The first mistake is to assume that an empty home owes nothing. The law taxes the owner on imputed income whether or not anyone pays rent. The second is to use the wrong rate category, which happens when an owner moves country and forgets to tell the adviser. The third is to mix up the periods of a part-year let, so that rent and imputed income overlap. The fourth is to rely on dates from an older article, because the windows changed from 2026. The fifth is to throw away the invoices, which an EU or EEA resident needs to deduct anything.

§ 11Selling or letting changes the picture

A decision to let the home, or to sell it, changes which income is declared and which section of this chapter applies. Before you let, ask your adviser to compare the net result, because rent is taxed on its own base while the unlet months still carry imputed income. Before you sell, ask for the gain to be estimated, and tell the buyer's lawyer that the withholding will apply. Neither decision is difficult, but both are easier when the paperwork is ready.

§ 12A routine for owners

Each year, collect the cadastral value from your IBI receipt, note the months the home was let and the months it was not, and gather the invoices that relate to the let months. Check the deadline for the year, because the windows changed. File through an adviser or through the agency service, keep the receipt, and set a reminder for the following year.

Tax note. Rates depend on the region, the type of property and the buyer, and they change. Figures here are dated and sourced; examples are illustrative and show their assumptions. Confirm yours with the regional tax agency or a tax adviser.