If you own a property in Spain but don’t rent it out, you may be surprised to learn that you are still required to pay a specific tax to the Spanish tax authorities every year. This is known as imputed income tax (renta imputada in Spanish) — one of the most commonly overlooked obligations among Nordic and international property owners in Spain.
What is imputed income tax?
The logic behind imputed income is straightforward: by owning a property in Spain, even if you only use it for holidays and never receive a single euro in rent, the Spanish Tax Agency (Agencia Tributaria) considers that you are enjoying a financial benefit. That benefit is treated as a form of income and taxed accordingly — for non-residents who are not renting out their property.
This is entirely separate from rental income tax, which applies when you do rent your property out. If your property sits empty or is used exclusively by you, imputed income tax is the relevant obligation.
How is it calculated?
The calculation is based on your property’s cadastral value (valor catastral), which appears on your annual IBI (local property tax) bill:
- Take the cadastral value (e.g. €80,000)
- Generally, use 2%; the 1.1% rate applies where the relevant cadastral revaluation rules are met. For tax years 2023–2025, the new values must generally have taken effect on or after 1 January 2012.
- The result is your “imputed income”
- Apply the tax rate: 19% for EU/EEA residents (24% for others)
Practical example — property with cadastral value of €80,000
| Imputed income (€80,000 × 1.1%) | €880 |
| Tax (€880 × 19%) | €167.20 per year |
The amount is generally modest. However, the real problem arises when owners fail to file at all — penalties, late payment interest, and surcharges can quickly multiply the original tax many times over.
When and how do you file?
This tax is declared using Modelo 210 — the standard non-resident income tax form in Spain. The deadline is 31 December of the year following the tax year in question. That means the 2025 tax return must be filed by 31 December 2026.
If the property is rented out for part of the year and used privately for the rest, rental income and imputed income for the days not rented out must be declared separately, both using Modelo 210. Rental income from 2026 filed as an annual group is declared and paid between 1 and 20 April 2027; income arising from April to September 2026 and declared individually keeps the previous filing deadlines.
What you need to file
To file and pay, you need a Spanish NIE number (tax identification for foreign nationals) and a way to make payment in Spain — either through a Spanish bank account or via an authorised representative such as a Spanish lawyer. A lawyer can manage the entire process on your behalf under a power of attorney.
Calculate your imputed income tax
Use our free online calculator to find out exactly how much you owe:
🏡 Imputed Income Tax Calculator
Contact us
Do you need help filing your Modelo 210, have questions about your tax obligations as a property owner in Spain, or simply want to make sure you are fully compliant? We are here to help.
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📱 +34 629 549 430
🌐 www.colas-abogados.com