Owning a home in Spain as a non-resident comes with a recurring tax obligation that many foreign owners only discover after they have already signed at the notary. The form is called Modelo 210 and it is used to pay the Impuesto sobre la Renta de no Residentes (IRNR), the Spanish income tax for individuals who are not tax-resident in Spain but who own or rent out property here. This article explains how it works, what the rates are, and when you have to file.
Who has to file Modelo 210?
Every individual who is not a Spanish tax resident and owns property here must file Modelo 210 — whether the property sits empty most of the year, whether you use it yourself on holidays, or whether you rent it out. This is one of the most important differences between being a resident and a non-resident: residents file IRPF (the standard Spanish income tax), whereas non-residents are taxed only on the income or use linked to the property itself.
Two typical scenarios
In practice, most Nordic and international owners fall into one of two categories:
1. The property is used only privately (no rental)
In this case Spain applies a so-called imputed income. The tax office calculates a fictional annual income equal to 1.1% or 2% of the cadastral value (valor catastral) of the property, depending on whether the cadastre has been updated in the last ten years. The applicable tax rate is then 19% for EU/EEA residents and 24% for residents outside the EU/EEA. The return is filed annually, with the deadline on 31 December of the year following the relevant tax year.
Example: an apartment in Alfaz del Pi with a cadastral value of €120,000 and an updated cadastre pays 1.1% × €120,000 = €1,320 of imputed income, and the tax due is 19% × €1,320 = €250.80 per year. It is often a smaller amount than owners expect — but it is mandatory, and Hacienda can claim up to four years of unpaid tax with interest and surcharges.
2. The property is rented out (holiday or long-term lets)
If you rent the property out, the income must be filed quarterly (deadline the 20th of January, April, July and October). EU/EEA residents may deduct direct expenses linked to the rental — local property tax (IBI), insurance, community fees, mortgage interest, depreciation, repairs etc. The rate is 19% on the net profit. Residents outside the EU/EEA pay 24% on the gross amount with no deductions, which is a significant disadvantage.
What if the property is not rented all year?
If you rent out the home for, say, three months of the year, you pay rental tax for those months and imputed income tax for the remaining nine. The tax office treats the periods separately, and both must be declared.
Calculate it yourself with our tools
We have developed two free calculators that show you your tax liability in seconds:
- Imputed income calculator — if you use the home yourself.
- Rental income tax calculator — if you rent it out.
Legal basis
The tax is governed by Real Decreto Legislativo 5/2004, de 5 de marzo, which approves the consolidated text of the Non-Resident Income Tax Act, together with Real Decreto 1776/2004. Modelo 210 is filed electronically with Hacienda, and for foreign owners this is almost always done through a Spanish lawyer or fiscal representative with power of attorney.
Common mistakes to avoid
The most recurrent mistake is assuming that nothing is due if the property is empty — it must be declared either way. Another is relying on the agency, gestoría or estate agent to take care of it automatically; the legal responsibility always stays with the owner. Finally, do not forget to keep your contact details up to date (address, email, bank account), because Hacienda sends all communication electronically to the data on file.
Kontakta oss / Contact us / Contáctenos
At Colás Abogados / Advokater we have been helping Nordic and international owners deal with Spanish taxes, tax returns and property matters for more than 18 years.
Email: info@colas-abogados.com
Phone: +34 629 549 430
Web: www.colas-abogados.com