Non-Resident Property Tax in Spain — Annual Obligations Explained (2026)
Own a property in Spain but live abroad? Even if you never rent it out, you have tax obligations to the Spanish authorities every single year. This guide explains every one — IRNR imputed income, rental income tax, IBI and wealth tax — with the current rates, deadlines and worked examples, so you stay compliant and avoid penalties.
Who is this guide for? Non-Spanish tax residents — EU and non-EU — who already own a property in Spain as a holiday home, second home or rental investment. For the taxes you pay at the point of purchase, see our companion guide: taxes foreign buyers pay when purchasing property in Spain. All figures reflect legislation in force for 2026.
Contents
- The three taxes every non-resident owner faces
- IRNR — imputed income on your own home
- IRNR — tax on rental income
- Modelo 210 — deadlines you cannot miss
- IBI — annual municipal property tax
- Wealth tax and the solidarity tax
- Selling: the 3% retention and capital gains
- Common mistakes non-resident owners make
- Why use a Spanish tax advisor
- FAQ — non-resident property tax in Spain
The three taxes every non-resident property owner faces
Spanish law treats a property owned by a non-resident as an asset that generates tax consequences — whether or not you ever collect a euro in rent. Your obligations fall into three groups, and it is essential to understand that they are separate taxes paid to different authorities:
- IRNR (Non-Resident Income Tax) — a national tax filed on Modelo 210 with the Agencia Tributaria. Covers imputed income on personal-use property and actual rental income.
- IBI (municipal property tax) — a local tax paid to your town hall (Ayuntamiento) each year.
- Wealth Tax — applies only if your net Spanish assets exceed €700,000.
The most common misconception: many owners assume that paying their annual IBI settles all their Spanish tax. It does not. IBI is a local tax; the Modelo 210 is a national income tax. Paying one does not replace the other — and the tax authority does not send you a bill. IRNR is self-assessed: it is your responsibility to file.
Are you a non-resident for tax purposes?
You are generally a Spanish tax resident if you spend more than 183 days a year in Spain, or your main economic interests are based there. If you spend fewer than 183 days and pay tax in another country, you are a non-resident — and the obligations on this page apply to you, regardless of nationality.
IRNR — imputed income tax on your own home (renta imputada)
If your Spanish property is empty or used only by you and your family, Spain still assumes it generates a notional or “imputed” income — and taxes you on it. This catches out thousands of foreign owners every year who wrongly believe an unrented holiday home creates no tax.
How imputed income is calculated
- Taxable base: 1.1% of the cadastral value (valor catastral) if that value has been revised in the last 10 years — otherwise 2%.
- Tax rate applied to the base: 19% for residents of the EU, Norway, Iceland and Liechtenstein; 24% for all other non-residents (including the UK since Brexit).
- Filed on: Modelo 210, once a year, by 31 December of the following year.
- Your cadastral value appears on your annual IBI receipt.
Worked example. A holiday home with a cadastral value of €200,000, revised in the last 10 years:
Base: 1.1% × €200,000 = €2,200.
EU resident: 19% × €2,200 = €418 per year.
Non-EU resident: 24% × €2,200 = €528 per year.
Each owner files a separate Modelo 210 for their share. If you and your spouse own 50% each, you each declare half the imputed income on your own return.
Note that the European Commission has challenged Spain’s imputed income rule on the grounds that Spanish residents are not taxed the same way on their main home. As of 2026 the rule still applies and you must continue to file, but a future change could open the door to refund claims. A Spanish tax advisor can keep you informed.
IRNR — tax on rental income
If you rent your property out — long-term, or as a short-term holiday let via Airbnb or Booking — the actual rental income must be declared on Modelo 210. The rate depends on where you are tax resident, and so does your ability to deduct costs.
Deductible expenses
EU/EEA residents may deduct costs directly linked to the rental — IBI, community fees, insurance, mortgage interest, repairs, depreciation and utilities — prorated to the days the property was actually let. Non-EU residents traditionally could not deduct expenses; however, a July 2025 ruling by the Spanish National Court (Audiencia Nacional) extended deduction rights to non-EU owners on equal-treatment grounds. This area is evolving, so confirm your position with a tax advisor before filing.
Worked example. A property let for €15,000 a year:
EU resident with €5,000 of deductible expenses: 19% × €10,000 = €1,900.
Non-EU resident, no deductions: 24% × €15,000 = €3,600.
Part-year rentals need two returns. If you let the property for part of the year and use it yourself for the rest, you file a rental return for the let days and an imputed income return for the vacant days. Missing the second filing is one of the most common errors.
Short-term tourist lets now also require a valid rental registration number to be listed on booking platforms, and platforms must report rental activity to the authorities. Check your local licence rules — they vary by region and are strict in the Balearic Islands.
Modelo 210 — the deadlines you cannot miss
Modelo 210 is the single form used for all three non-resident property situations. Each has its own deadline — and since the 2024 tax year, rental income is filed annually rather than quarterly.
| Income type | What it covers | Filing period | Rate |
|---|---|---|---|
| Imputed income | Empty or owner-used property | By 31 December of the following year | 19% / 24% |
| Rental income | Let property (2024 income onward) | 1–20 January of the following year | 19% / 24% |
| Capital gains | On sale of the property | Within ~4 months of completion | 19% |
Paying by direct debit (domiciliación)? You must file at least five working days before the deadline so the bank can process payment. For the 31 December imputed-income deadline, file by mid-December to avoid bank-holiday delays.
IBI — annual municipal property tax
IBI (Impuesto sobre Bienes Inmuebles) is Spain’s equivalent of council tax, levied every year by the municipality where the property sits. It is completely separate from the Modelo 210.
- Rate: 0.4% to 1.1% of the cadastral value, set by each town hall.
- On a cadastral value of €200,000 you might pay roughly €800–€2,200 per year.
- Many municipalities also charge a separate refuse collection fee (basura).
- The IBI receipt shows your valor catastral — keep it; you need it for your Modelo 210.
Wealth tax and the solidarity tax
Higher-value owners may face a third annual charge. Wealth Tax (Impuesto sobre el Patrimonio) applies to non-residents whose net Spanish assets exceed €700,000 (the personal allowance). Progressive rates run from roughly 0.2% to 3.5%, and treatment varies sharply by region — Madrid has historically applied a 100% bonus that effectively eliminates it.
A parallel national charge, the Solidarity Tax on Large Fortunes (Impuesto de Solidaridad de las Grandes Fortunas), targets net wealth above €3 million and is designed to capture owners in regions that bonus the ordinary wealth tax. Any wealth tax already paid is credited against it.
Wealth and solidarity tax planning matters most for premium purchases in Mallorca, Ibiza, Marbella and Barcelona. The way a purchase is structured can have a material impact on the annual bill.
Selling: the 3% retention and capital gains
When a non-resident sells a Spanish property, the buyer is legally required to withhold 3% of the sale price (via Modelo 211) and pay it to the tax authority as an advance against the seller’s capital gains tax.
- The seller then files a Modelo 210 within roughly four months to settle the actual gain at 19% — or reclaim the excess if the 3% exceeded the tax due.
- A municipal capital-gains tax, the plusvalía municipal, is also payable to the town hall.
Not sure which returns you need to file?
Our vetted English-speaking tax advisors in Spain calculate your exact liability, handle every Modelo 210, and keep you compliant year after year — remotely.
Find a Tax Advisor →Common mistakes non-resident owners make
Assuming IBI covers everything
IBI is local; the Modelo 210 is national. Paying one does not settle the other.
Not filing because it’s empty
An unrented holiday home still owes imputed income tax every year.
One return for a shared property
Each owner must file a separate Modelo 210 for their ownership share.
Missing the part-year split
Let part of the year? You owe a rental return and an imputed return for the vacant days.
Forgetting the direct-debit lead time
Direct debit needs filing five working days before the deadline to clear.
Ignoring wealth tax on high-value homes
Spanish assets over €700,000 can trigger wealth or solidarity tax.
Why work with a Spanish tax advisor
Spanish non-resident tax is self-assessed, deadline-driven and unforgiving of errors — the authority sends no reminder, but applies penalties, surcharges and interest when filings are missed. A qualified advisor confirms your residency status and rate, calculates the correct taxable base, handles every Modelo 210, and applies any relevant double taxation treaty.
Spain has treaties with more than 90 countries — including the UK, Germany, France, the Netherlands and the USA — so tax paid in Spain on rental income can usually be credited against your tax at home, preventing double taxation. Our network of vetted English-speaking tax advisors and property lawyers in Spain covers every major market.
Stay compliant, every year
Connect with an English-speaking Spanish tax advisor who files your Modelo 210 on time, so you never risk a penalty.
Find My Advisor →FAQ — non-resident property tax in Spain
Do I have to file taxes in Spain if my property is empty?
Yes. Non-resident owners must declare imputed income (renta imputada) every year even if the property is never rented. It is calculated as 1.1% or 2% of the cadastral value, taxed at 19% (EU/EEA) or 24% (non-EU), and filed on Modelo 210 by 31 December of the following year.
Does paying my IBI cover my Modelo 210 obligation?
No. IBI is a local municipal tax paid to the town hall. The Modelo 210 is a national income tax paid to the Agencia Tributaria. They are entirely separate, and paying one does not replace the other.
How much is non-resident imputed income tax?
For a property with a €200,000 cadastral value revised in the last 10 years, the base is 1.1% (€2,200). An EU resident pays 19% (€418/year); a non-EU resident pays 24% (€528/year). The amount is usually modest, but the penalty for not filing can be far higher.
When is the Modelo 210 deadline?
Imputed income (empty/owner-used property): by 31 December of the year after the tax year. Rental income (2024 onward): a single annual return filed 1–20 January of the following year. Capital gains on a sale: within roughly four months of completion.
Do EU and non-EU owners pay different rates?
Yes. Residents of the EU, Norway, Iceland and Liechtenstein pay 19%. All other non-residents — including the UK since Brexit — pay 24%. EU/EEA residents can also deduct rental expenses; for non-EU owners this is evolving following a 2025 court ruling.
Can I deduct expenses against my rental income?
EU/EEA residents can deduct costs linked to the rental (IBI, community fees, insurance, mortgage interest, repairs, utilities), prorated to the days let. Non-EU residents traditionally could not, but a July 2025 Audiencia Nacional ruling extended this right on equal-treatment grounds. Confirm your position with a tax advisor before filing.
Do non-residents pay wealth tax in Spain?
Only if your net Spanish assets exceed €700,000. Rates run from about 0.2% to 3.5% and vary by region. A separate national Solidarity Tax on Large Fortunes applies to net wealth above €3 million.
What happens if I don’t file my Modelo 210?
The tax authority does not send a bill, but it can pursue unfiled years — typically up to four years back — and apply penalties, surcharges and interest. Filing voluntarily before being contacted carries much lower surcharges.
Can I avoid being taxed twice on my Spanish rental income?
Usually, yes. Spain has double taxation treaties with more than 90 countries. Tax paid in Spain on your rental income can generally be credited against your tax liability at home. A Spanish tax advisor can confirm how the treaty applies to your country of residence.
Legal disclaimer: This article is for general informational purposes only and does not constitute legal or tax advice. Tax rates, thresholds and regulations change frequently and vary by autonomous region. Always consult a qualified Spanish tax advisor before filing. Property-Lawyers.com connects owners with legal and tax professionals but does not itself provide tax advice.