SOBE Knowledge
Non-Resident Income Tax on Spanish Property
Spain taxes non-resident owners every year — on real rent when there is a tenant, and on imputed income when there is not. The quiet obligation that surfaces at the worst moment.
The tax every non-resident owner pays
If you own Spanish property and live elsewhere, Spain taxes you annually on it — even when it earns nothing. The instrument is the IRNR, filed on Modelo 210.
Two regimes, depending on use. A property kept for your own enjoyment generates imputed income — a deemed benefit the law values at 1.1% of the valor catastral (2% where the value has not been revised in the last decade). A property that is rented is taxed on the rent itself. Either way, the rate is 19% for residents of the EU/EEA and 24% for everyone else — and that distinction carries a sting we show below.
The empty-property tax nobody warns about
Take an apartment with a revised valor catastral of €120,000, used only by its owners. Imputed income: 1.1% × €120,000 = €1,320. Tax: €251 a year for an EU owner, €317 for a non-EU one. Small money — but obligatory, per owner, every year, declared the year after it accrues.
The trap is not the amount; it is the silence. No bill arrives. Owners discover years of unfiled returns when they sell — at the exact moment the tax office is looking at their file because of the 3% retention. Filing €251 a year is cheap; regularising five years of it with surcharges, during a sale, is not.
If the property is rented — the EU / non-EU divide
All others: 24% on gross income (no deductions)
The same apartment, the same tenant, two very different bills:
Since Brexit this is the line that most surprises British owners: no deductions for IBI, community fees, management or mortgage interest — the 24% applies to the top line. It changes the arithmetic of every yield calculation, and sometimes the ownership structure itself.
Pre-tax first, then your regime
SOBE Buy-to-Let Yield Calculator
Build the honest pre-tax net — then apply your 19%-on-net or 24%-on-gross reality to it.
Filing mechanics
Everything runs through Modelo 210. Imputed income for a year is declared during the following year; rental income is now grouped and declared annually rather than quarter by quarter. Each co-owner files for their share — a couple owns two obligations, not one. And the same form family handles the sale itself: the buyer’s 3% retention (Modelo 211) and the seller’s final reckoning are chapters of the same story, told on the capital-gains page.
A gestor or lawyer typically runs the annual filings for a modest fixed fee — the kind of standing arrangement we help owners put in place at completion, so the obligation never depends on anyone’s memory.
Four ways owners get caught
1. “It earns nothing, so I owe nothing.” Imputed income exists precisely for that case. Empty still files.
2. The gross-basis surprise. Non-EU/EEA landlords — British owners above all — deduct nothing. Model it before buying, not after.
3. One return for two owners. Each titleholder files separately for their share. Half-filed is unfiled.
4. Regularising at the worst moment. Unfiled years surface during the sale, with surcharges, while the retention sits frozen. A €250 habit prevents a four-figure reckoning.
Frequently asked questions
Do I pay Spanish tax if my property is empty?
Yes. Non-resident owners pay tax on imputed income - 1.1% of the cadastral value (2% if unrevised) taxed at 19% for EU/EEA residents or 24% for others - every year, per owner, even with no rent received.
What is the difference between EU and non-EU landlords?
EU/EEA residents pay 19% on net rental income with expenses deductible; everyone else pays 24% on gross income with no deductions - the post-Brexit reality for British owners.
When is Modelo 210 filed?
Imputed income for a year is declared during the following year; rental income is grouped and declared annually. Each co-owner files separately for their share.
What expenses can EU landlords deduct?
Proportionate ownership costs - IBI, community fees, insurance, maintenance, management, mortgage interest and depreciation - for the periods the property was let.
What happens if I have never filed?
The obligation accumulates quietly and typically surfaces during a sale, when the 3% retention brings the file under review. Regularising past years with surcharges is possible - and far more expensive than filing on time.