10 things to know about Spanish non-resident property taxes

Non-resident taxes in Spain

If you own a property in Spain but you do not qualify as a Spanish tax resident, here are 10 things you should know about non-resident taxes in Spain:

1. Non-resident property owners must file at least one Form 210 (“Modelo 210”) per year whether they let their property out or not.
2. Each owner is considered a separated taxpayer and, thus, must submit a separate Form 210 per property.
3. The days during which the property is not rented out generate imputed or deemed income. Imputed income is the result of applying 1.1% or 2% to the cadastral value of the property that appears on the Property Tax bill (“IBI”). The applicable percentage depends on when the last revision of the rateable value (“cadastral value”) in the municipality took place.
4. Parking spaces and storage rooms must be declared in a separate Form 210 if they have a unique cadastral reference.
5. The non-resident tax rate depends on the country of tax residency. Tax residents in EU countries, Norway and Iceland are subject to the non-resident income tax at a 19% flat rate. All other tax residents are subject to a 24% flat rate.
6. Income from property rental is declared quarterly while imputed or deemed income is declared annually. If the property is rented part of the year, imputed income should be prorated. Important note: starting from the 2024 tax year, the declaration of rental income will shift to an annual basis. This change moves away from the former requirement of quarterly declarations, simplifying the reporting process for property owners.
7. Expenses connected with rental income are only deductible if the owner is a tax resident of an EU country, Norway, or Iceland.
8. The cadastral reference (“referencia catastral”) is a unique 20-digit number provided by the Cadaster (“Catastro”) for each property in Spain. The Cadaster is a real estate registry that contains descriptive and graphic information on Spanish properties.
   You may need this reference almost for any transaction in Spain related to the property. You can find this number either on your IBI tax bill or in the purchase deed.
9. Most taxpayers may deduct non-resident taxes paid in Spain against their home country tax return. The majority of double tax treaties signed by Spain allow non-resident taxpayers to deduct totally or partially the taxes paid in Spain.
10. You could file late tax returns if you failed to file your Spanish taxes. However, the tax office will impose surcharges and interest for late payment.