10 things to know about Spanish non-resident property taxes

Do you own a property in Spain but don’t live there as a tax resident? Then you should know that the Spanish Tax Agency (Agencia Tributaria) requires all non-resident property owners to file the Modelo 210 tax form every year.

Many owners are unaware of this obligation or are unsure how the non-resident property tax actually works, especially when the property is not rented out. That’s why at IberianTax, we’ve prepared this guide with the 10 most important things to know about non-resident taxes in Spain.

Whether you use your property as a second home or rent it out for part of the year, these key points will help you understand what you need to declare, when to do it, and how to avoid penalties or surcharges.

1. Annual obligation to file Form 210

Non-resident property owners must file at least one Form 210 each year, regardless of whether they rent out their property or not. You must meet this obligation whether your property is rented or vacant.

2. Individual tax return per owner and property

Each owner is considered an independent taxpayer and must file a separate Form 210 for each property. Multiple properties cannot be combined into a single return.

3. Imputed income for non-rented days

For any days the property is not rented out, imputed income is generated. This is calculated by applying 1.1% or 2% to the cadastral value of the property (as shown on the IBI bill). The percentage depends on when the cadastral value was last reviewed in the municipality.

4. Separate return for parking spaces and storage units

If parking spaces or storage units have their own independent cadastral reference number, they must be declared on a separate Form 210.

5. Tax rates according to country of residence

• Residents of the EU, Liechtenstein, Norway and Iceland: 19%
• Residents of other countries: 24%

6. Filing frequency

• Rental income: quarterly (up to 2023)
• Imputed income: annually
• Properties rented for only part of the year (two separate returns): imputed income (annual) and rental income (quarterly or annual)

Important note: From the 2024 tax year onwards, rental income will be declared annually, simplifying the process.

7. Deductibility of expenses

Only owners who are residents of the EU, Liechtenstein, Norway or Iceland can deduct expenses related to rental income. Residents of other countries cannot deduct expenses.

8. Cadastral reference: unique identifier

Each property has a unique 20-digit number issued by the Land Registry (Catastro), required for almost any property-related procedure. It can be found on the IBI bill or in the title deeds.

9. Tax credit in the country of residence

Non-resident taxes paid in Spain may be deducted from the tax return in the country of residence, according to the double taxation agreements signed by Spain.

10. Consequences of late filing

Returns can be filed after the deadline, but the Tax Office will apply surcharges and interest, which can significantly increase the overall tax cost.