Tax Obligations for Non-Residents Owning Property in Spain

 

 

Tax Declaration Requirement for Non-Residents

Non-residents who own property in Spain are legally required to submit a tax declaration, even if the property is used exclusively for private purposes and generates no rental income. This obligation applies to most property owners from the EU, the United Kingdom, Switzerland and other non-Spanish residents.

Who Is Considered a Non-Resident in Spain

You are considered a non-resident for tax purposes if

  • you spend fewer than 183 days per year in Spain

  • your primary tax residence is outside Spain

  • you are not subject to unlimited tax liability in Spain

Applicable Tax: Non-Resident Income Tax

The relevant tax is the Non-Resident Income Tax Impuesto sobre la Renta de No Residentes, IRNR

This tax applies regardless of whether the property is rented or not.

Property Not Rented (Private Use or Vacancy)

Spanish tax law assumes a deemed rental income.

Calculation basis

  • 1.1 percent of the cadastral value if updated within the last ten years

  • 2 percent if not updated

Tax rates

  • 19 percent for EU and EEA residents

  • 24 percent for non-EU residents

Tax filing

  • Form Modelo 210

  • Annual filing, usually by 31 December of the following year

Property Rented Out

Rental income must be declared.

EU and EEA residents

  • Tax rate 19 percent

  • Deductible expenses include maintenance, property tax IBI, community fees and management costs

Non-EU residents

  • Tax rate 24 percent

  • No expense deductions allowed

Tax filing

  • Form Modelo 210

  • Quarterly submission

Example Calculation

Cadastral value 120,000 EUR Deemed income 1.1 percent equals 1,320 EUR Tax at 19 percent equals 250.80 EUR per year