Many Swedish, Norwegian, Danish and British owners on the Costa Blanca rent out their home to tourists during the periods they are not using it themselves. Before the first listing goes live, two things need sorting out: whether the property can be registered as tourist accommodation, and how that rental income is taxed by the Spanish tax authorities.
The tourist rental licence
In the Comunitat Valenciana, letting out a whole property for a fee for stays of up to 10 days requires registering it as a "vivienda de uso turístico" (dwelling for tourist use) with Turisme Comunitat Valenciana. Since Decree-Law 9/2024, which amended Decree 10/2021, the process requires a favourable municipal urban-planning compatibility report, the property’s cadastral reference, and the owner’s DNI/NIE. Registration is done through a sworn declaration ("declaración responsable") and is valid for five years, after which it must be renewed.
It is also essential to check the community of owners’ bylaws: many communities in the area have restricted or expressly banned tourist rentals in their buildings, and letting without registration can lead to administrative fines.
How rental income is taxed
If you are not a Spanish tax resident, rental income from tourist lettings is declared through the Non-Resident Income Tax (IRNR), Form (Modelo) 210, filed quarterly (between the 1st and 20th of the month following each quarter).
The applicable rate depends on your country of residence:
Residents of the European Union, Iceland, Norway or Liechtenstein are taxed at 19% on the net profit, meaning they can deduct expenses directly linked to the rental: community fees, property tax (IBI), insurance, utilities, repairs, and a proportional depreciation allowance.
Residents outside the EU/EEA — including the United Kingdom since Brexit — are taxed at 24% on the gross income, with no right to deduct any expenses.
An example with a property generating €12,000 gross per year in rent, with €3,000 of deductible expenses:
A Swedish or Norwegian owner would pay 19% on a taxable base of €9,000 (€12,000 minus €3,000 in expenses), i.e. €1,710. A British owner, or an owner resident outside the EEA, would pay 24% on the full €12,000, i.e. €2,880, with no expenses deductible at all.
Imputed income for the months without a tenant
For the periods of the year when the property sits empty or is kept available for the owner’s own use, a separate tax obligation still applies: imputed income, calculated on the property’s cadastral value, also declared via Modelo 210, usually in January of the following year.
Legal framework
Non-resident taxation is governed by the consolidated Non-Resident Income Tax Act (Royal Legislative Decree 5/2004), while tourist rentals in the Comunitat Valenciana are regulated by Law 15/2018 on tourism, leisure and hospitality, Decree 10/2021, and its amendment by Decree-Law 9/2024.
You can get an estimate of your quarterly tax bill with our free rental income tax calculator.
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