If you own Spanish property but are not tax-resident in Spain, you owe non-resident income tax (IRNR) annually on that property — filed on modelo 210. Two situations: (1) property not rented out — you pay an "imputed rental" tax based on the cadastral value, typically calculated at 1.1% or 2% of that value taxed at the non-resident rate (19% for EU/EEA residents, 24% for non-EU including the UK post-Brexit) — filed annually by 31 December of the following year; (2) property rented out — you declare actual rental income on modelo 210 quarterly, with EU/EEA residents allowed deductible expenses at 19% and non-EU residents (including UK) taxed at 24% with no deductions. Non-payment triggers late-filing surcharges, interest and eventual embargoes. We quote clearly to handle your annual and quarterly modelo 210 filings — book a consultation.
Who Owes It
You owe Spanish non-resident property tax if all three apply:
- You own property in Spain — as sole owner, co-owner, or through a company (companies have different rules).
- You are not tax-resident in Spain — you don't spend more than 183 days a year here and Spain isn't your centre of economic or vital interests.
- The ownership was in place during the tax year in question — pro-rata calculations apply if you owned only part of the year.
Nationality is irrelevant — what matters is where you're tax-resident. A British national living permanently in Spain is a Spanish resident (and files ordinary IRPF, not IRNR); a Spanish national living permanently in London is a non-resident for Spanish tax purposes (and files modelo 210 on their Spanish property).
Common ownership situations that owe non-resident property tax:
- UK residents with a holiday home on the Costa del Sol, Costa Blanca or Costa Cálida.
- Northern European retirees who split their year between Spain and their home country and haven't crossed 183 days here.
- Investors who bought a Spanish apartment to rent out but live abroad.
- Co-owners of inherited Spanish property who live overseas.
Each co-owner files their own modelo 210 on their share. A property owned 50/50 by two non-resident spouses means two separate modelo 210 filings, each for half the taxable base.
Imputed Rental Tax (Unrented)
If you own the property but don't rent it out, Spain still taxes you. The logic: even an empty holiday home represents "notional" income, because you could have rented it. The tax is called imputed rental income tax (imputación de rentas inmobiliarias), and the mechanic is:
- Look at the cadastral value (valor catastral) of the property — this is on your annual IBI bill from the town hall.
- Multiply by 1.1% if the cadastral value was revised within the last 10 tax years (from the year of assessment), or by 2% if it wasn't.
- That figure is the taxable base — the notional annual rental income.
- Apply the non-resident tax rate: 19% for EU/EEA residents, 24% for non-EU (including UK) residents.
- File on modelo 210 annually by 31 December of the year following the tax year (so 2025 tax is filed by end 2026).
Pro-rating: if you owned the property for only part of the year (e.g. bought in July), the taxable base is pro-rata to the ownership period. If the property was rented for part of the year and unrented for the other, imputed tax applies only to the unrented months.
The imputed tax hits every non-resident owner
Even if the property is empty most of the year and produces zero rental income, imputed rental income tax is due. This is the tax most non-resident owners forget — and the most common reason for tax notifications from the Spanish Agencia Tributaria years after purchase.
Actual Rental Income Tax
If you rent the property out — long-term to a Spanish tenant, short-term as a holiday let, or anything in between — you owe tax on the actual rental income received.
Key mechanics:
- You file quarterly modelo 210 on rental income (not annually). Deadlines are the 20th of the month following each quarter: 20 April, 20 July, 20 October, 20 January.
- The tax base is the gross rental income received, less deductible expenses if you qualify (see below).
- The rate is the same 19% EU/EEA / 24% non-EU split.
- If the property is rented some of the year and empty the rest, you owe rental income tax on the let periods and imputed tax on the empty periods.
Short-term holiday letting has additional rules — see our tourist licence guide — but the tax mechanic is the same modelo 210 quarterly filing.
UK vs EU Rates Post-Brexit
Brexit had a significant impact on UK owners of Spanish property. Before Brexit, UK residents benefited from the EU/EEA rate of 19% and the right to deduct expenses against rental income. After Brexit, UK residents are treated as non-EU:
| Residence | Non-resident property tax treatment |
|---|---|
| EU/EEA resident | 19% rate, deductible expenses allowed against rental income (mortgage interest, community fees, IBI, repairs, agent fees, insurance, depreciation). |
| UK resident (post-Brexit) | 24% rate, no expense deductions allowed on rental income — tax is on gross rent. |
| Non-EU (US, Canada, Australia, etc.) | Same as UK — 24% on gross, no deductions. |
For UK owners who let their Spanish property, the Brexit impact was material. Where a UK owner used to pay 19% on net rental income (after mortgage interest, community fees, IBI, agent fees), they now pay 24% on the gross rent. Effective tax burdens on landlord income roughly doubled or more in many cases. Some UK owners have restructured — moving Spanish property into corporate ownership, transferring to a Spanish-resident family member, or accelerating a move to Spanish tax residence. Each of those has trade-offs and needs modelling. See our tax service.
Modelo 210 Explained
Modelo 210 is the non-resident income tax return. It's the form on which any Spanish income earned by a non-resident is declared — including imputed and actual rental income from Spanish property. Key characteristics:
- Filed electronically through the Agencia Tributaria (Spain's tax authority) portal or by a tax representative.
- Requires a NIE and either a digital certificate or an authorised representative.
- One modelo 210 per property, per owner, per tax type, per period — so a couple owning one property files two forms per year for imputed tax (one each), and additional forms per quarter if rented.
- Paid via direct debit from a Spanish or EU bank account, or by bank transfer with a payment code.
The form itself is technical — the taxable-base calculation, the correct rate, the deductible expenses (where allowed), the ownership share, and the tax-code fields all need to be correct. Errors get flagged by the Agencia Tributaria, sometimes months or years later, with interest and surcharges added.
Filing Deadlines
| Situation | Deadline |
|---|---|
| Imputed rental (unrented) | Annual — by 31 December of the year following the tax year (2025 imputed tax due by 31 December 2026). |
| Actual rental income | Quarterly — by the 20th of the month after each quarter (20 April, 20 July, 20 October, 20 January). |
| Sale of property (CGT) | Within 4 months of the sale (see property CGT). |
| 3% retention as buyer | Buyer files modelo 211 within 1 month; seller reclaims/reconciles via modelo 210 within 4 months. See 3% retention guide. |
Deductions & Expenses
Deductibility depends on residence and situation:
Imputed rental (all owners)
No deductions. The taxable base is a fixed 1.1% or 2% of cadastral value regardless of expenses. Community fees, IBI, insurance and maintenance are not deductible against imputed income.
Actual rental — EU/EEA residents
Deductible expenses against gross rent include (broadly): mortgage interest (proportional to rental period), community fees, IBI, home insurance, repairs and maintenance, agent management fees, depreciation of building and furniture, and utilities where borne by the landlord.
Actual rental — non-EU (UK, US, others)
No deductions. Tax at 24% on gross rent.
This makes the residence classification a critical determinant of your effective tax rate on rental property. UK owners letting properties in Spain typically saw a substantial rise in their effective tax burden post-Brexit for this reason.
Worked Calculations
Example 1 — UK owner, holiday home not let
Cadastral value €120,000 (revised in the last 10 years — so 1.1% applies). Taxable base = €120,000 × 1.1% = €1,320. Tax = €1,320 × 24% = €316.80 per year. This is the annual imputed tax due, filed on modelo 210 by 31 December of the following year.
Example 2 — UK owner, rents the property €12,000/year
Gross rent €12,000 across the year. No deductions (UK = non-EU). Tax = €12,000 × 24% = €2,880 in the year. Filed quarterly on modelo 210.
Example 3 — German owner, rents the property €12,000/year, expenses €4,000
Gross rent €12,000 less deductible expenses €4,000 = €8,000 net. Tax = €8,000 × 19% = €1,520. The EU rate plus deductions substantially reduces the effective burden.
Example 4 — Two co-owners, unrented cadastral value €200,000 (2% applies)
Full taxable base = €200,000 × 2% = €4,000. Each co-owner declares their 50% share: €2,000 each. Each files their own modelo 210 for €2,000 × applicable rate.
These are illustrative worked examples
Actual liability depends on the specific cadastral value, ownership share, ownership period, residence, and deductions. Get a proper calculation for your property.
Other Property Taxes
Non-resident property tax (IRNR / modelo 210) sits alongside other Spanish property taxes you may owe:
IBI (local property tax)
Annual town hall tax based on cadastral value. Payable by whoever owns the property on 1 January of the year. Not linked to residence — everyone pays IBI.
Basura (waste tax)
Local waste-collection charge — small annual amount from the town hall.
Community fees
For apartments and gated developments, paid to the community of owners.
Wealth tax (Impuesto sobre el Patrimonio)
May apply to non-resident owners with net Spanish assets above regional thresholds.
Plusvalía municipal
Local tax on the increase in urban-land value at sale. See plusvalía guide.
CGT on sale
Non-resident CGT on gain at sale, with the 3% buyer retention against final liability. See property CGT.
If You Missed Years
It's extremely common for foreign owners to discover — years into ownership — that they've never filed non-resident property tax. Some never knew; others were told at closing they didn't need to; others assumed IBI and modelo 210 were the same thing (they aren't).
Options for regularising:
- Voluntary catch-up filings — file the missing years' modelo 210s before the Agencia Tributaria contacts you. Late-filing surcharges apply (rising with the delay) plus interest, but no penalty for wilful evasion.
- Respond to a Hacienda notification — if the Agencia Tributaria has already written asking about undeclared income, respond within the deadline with the missing filings. Penalties are steeper than voluntary catch-up but negotiable.
- Statute of limitations — Spanish tax generally has a 4-year limitation period, so historic years beyond that window are often out of reach for the Agencia Tributaria. That doesn't help if the notification is fresh.
The mistake most non-resident owners make is ignoring the first Hacienda letter. The situation gets materially worse from there — additional penalties, interest, and eventually embargoes on the Spanish bank account or property. Deal with it early. We handle voluntary catch-ups and Hacienda-driven regularisations routinely.
Our Service
We handle non-resident property tax for foreign owners of Spanish property:
- Annual imputed rental filings — modelo 210 by 31 December.
- Quarterly rental income filings — modelo 210 four times a year.
- Missed-year catch-ups — bringing historic non-filings up to date before Hacienda contacts you.
- Responses to Hacienda notifications — where a notification has already landed.
- 3% retention reconciliation at sale — recovering the buyer's retention or reconciling with final CGT.
- Modelo 720 / 721 and other reporting where applicable.
We quote clearly for annual or ongoing service. If your case is unusual (multiple properties, mixed rental/unrented years, historic gaps), we'll price after the initial review. Book a consultation to review your position.
Related Guides
Frequently Asked Questions
Yes. Spain taxes non-resident owners on an "imputed rental" basis even when the property is empty. The taxable base is 1.1% or 2% of the cadastral value (from your IBI bill), and the rate is 19% (EU/EEA residents) or 24% (non-EU including UK). It's filed annually on modelo 210 by 31 December of the year after the tax year. This is the most commonly missed tax by foreign owners — and the most common cause of years-later notifications from Hacienda. If you've owned the property and haven't been filing, you're likely behind and should regularise.
Depends on your cadastral value, your residence, and whether the property is rented. A worked example: UK owner, holiday home not let, cadastral value €120,000 (recently revised), imputed base €1,320, tax at 24% = €316.80 per year. Rental scenarios can push the annual liability well into the thousands. For UK owners letting property after Brexit, the loss of expense deductions and rate rise from 19% to 24% roughly doubled the effective tax burden. Get a proper calculation for your specific property.
Modelo 210 is Spain's non-resident income tax return. It's used for any Spanish income earned by a non-resident, including imputed and actual rental income from Spanish property, and CGT on sale of the property. It's filed electronically through the Agencia Tributaria's portal, requires a NIE, and typically requires either a digital certificate or an authorised tax representative. One form per property, per owner, per tax type, per period. Payments are made via direct debit or bank transfer with a payment reference.
Since Brexit, UK residents are treated as non-EU for Spanish tax purposes. The rate on Spanish-source income rose from 19% (EU/EEA) to 24% (non-EU), and — critically for landlords — the right to deduct expenses (mortgage interest, community fees, agent fees, IBI, depreciation) was lost. So a UK-resident landlord letting Spanish property now pays 24% on gross rent, versus a German landlord paying 19% on net rent. The effective tax burden roughly doubled for many UK owners letting property. Some restructure to reduce the impact, but each option has trade-offs and needs modelling.
File the missing years' modelo 210s as a voluntary catch-up before Hacienda contacts you. The Spanish tax limitation period is generally 4 years, so filings beyond that window may be out of reach for the Agencia Tributaria, but the safe approach is to regularise the last 4 years and go forward compliant. Late-filing surcharges apply (they rise with delay) plus interest, but voluntary catch-up avoids the penalty regime that applies to wilful evasion. If Hacienda has already written to you, that changes the process — respond within the deadline and don't ignore it. We handle both scenarios.
No — IBI (Impuesto sobre Bienes Inmuebles) is a local town-hall tax based on cadastral value, paid annually to the ayuntamiento (municipality). Non-resident property tax (IRNR, filed on modelo 210) is a national tax paid to the Agencia Tributaria. They are completely separate. Paying IBI does not satisfy your modelo 210 obligations, and vice versa. Most non-resident owners get an IBI bill routinely and pay it — then discover years later that they also owed modelo 210 for the same property, which no bill arrived for.
Rental income is rental income for tax purposes regardless of platform. You declare the rental receipts on modelo 210 quarterly, and imputed tax applies to the months the property was not let. Short-term holiday rentals typically require a tourist licence from your region (Andalucía, Valencia, Murcia and others all have their own regime — see our tourist licence guide), which is a separate regulatory question from the tax filing. Non-compliance with the licensing regime can trigger substantial fines separate from tax liability.
We handle non-resident property tax on an ongoing basis — annual imputed filings, quarterly rental filings, or one-off catch-ups for missed years. We quote clearly for your specific setup (number of properties, co-owners, rental status). Standard annual imputed filings for a single owner or couple are lower-cost; rental filings involve more work per year; missed-year regularisations depend on how far back and whether Hacienda has written. Book a consultation and we'll give you a straightforward quote.