What taxes does a non-resident pay in Spain on a property, whether it is let or not, and when is the Modelo 210 filed?

A non-resident who owns a home in Spain is liable to Non-Resident Income Tax (Impuesto sobre la Renta de no Residentes, IRNR), governed by the consolidated text approved by Royal Legislative Decree 5/2004. The return is filed using the Modelo 210 (Spanish non-resident income tax return), and what you pay depends on whether the property is let out or kept for your own use.

If the property is not let: deemed income

Even if the owner receives nothing, the law considers that a property available for their use generates income. This deemed income (renta imputada) is calculated by applying to the cadastral value (valor catastral):

• 1.1%, if the cadastral value has been revised or updated through a general collective valuation procedure that came into force in the tax year or in the previous ten years.
• 2% in all other cases.

The amount is apportioned according to the number of days in the year you owned the property and each owner's percentage share. The tax rate is applied to that figure with no expenses deductible. This return is annual: it relates to the position at 31 December and is filed during the following calendar year.

If the property is let: rental income

• Rent received is declared quarterly (or in some cases grouped annually), within the first twenty calendar days of April, July, October and January.
• Residents of another EU or European Economic Area state with an effective exchange of tax information can deduct expenses related to the letting: IBI, community fees, insurance, repairs, utilities, mortgage interest or depreciation, among others.
• Residents of all other countries, including the United Kingdom since Brexit, are taxed on gross income, with no expenses deductible.

If the property is only let for part of the year, deemed income must still be declared for the days it is not let.

Tax rates

• 19% for residents of the EU or the European Economic Area with an effective exchange of information.
• 24% for residents of all other countries.

As a general rule, double taxation treaties allow Spain to tax income from property located in Spain. It is the owner's country of residence that, where applicable, relieves the double taxation (in the UK, typically through foreign tax credit relief).

Other taxes to bear in mind

• IBI: annual local property tax (similar to council tax) paid by the owner.
• Impuesto sobre el Patrimonio (Spanish wealth tax): only if the net value of assets located in Spain exceeds the applicable tax-free allowance.

A common mistake

Many foreign owners believe that if they do not let their property, they have nothing to declare in Spain. That is not the case: deemed income must be declared every year. The Spanish Tax Agency (Hacienda) can claim any years that are not time-barred, generally the last four years, with surcharges and, where applicable, penalties. If you have outstanding years, it is best to put them in order as soon as possible.