Keeping Good Records of Income & Expenses for Non-Resident Rental Income Tax in Spain

Owning a rental property in Spain as a non-resident comes with financial benefits, but it also means meeting your tax obligations.
If you rent out your property, you must file a Modelo 210 form for rental income tax every year.
Keeping well-organised records of your rental income and expenses throughout the year will make this process easier, ensure compliance, and help you avoid unnecessary stress when January rolls around.
In this guide, we’ll walk you through why record-keeping is essential, what documents you need to hold on to, and best practices for managing your income and expenses.

Why Good Record-Keeping is Essential for Non-Resident Landlords

As a non-resident property owner, you are required to declare rental income in Spain each year using the Modelo 210 form. Until February 2024, the Rental Income Tax was filed each quarter, but this has since changed to an annual requirement, making things much easier for owners.

Without keeping proper records throughout the year, you may:

• Overpay or underpay taxes due to miscalculations
•  Miss out on deductible expenses (if eligible)
• Struggle to file on time and risk late penalties
• Face issues if the Spanish tax authorities request proof of your tax filings

Good record-keeping ensures:

• Accurate tax declarations, avoiding errors that could trigger tax investigations
• Easier tracking of deductible expenses for eligible non-residents
• Less stress during tax season by organising records throughout the year

What Rental Income & Expense Records Should Non-Residents Track?

Rental Income:

• Rental agreements
• Bank statements showing rent received
• Platform reports (Airbnb, Vrbo, etc.)
• Receipts or email confirmations of payments

Deductible Expenses (for EU, Norway, or Iceland residents only):

• Mortgage interest (interest only)
• Property tax (IBI) receipts
• Community fees
• Utility bills (if paid by the landlord)
• Property management fees
• Repairs and maintenance (not upgrades)
• Insurance costs

Tax-Deductible Expense Records (For EU, Norway & Iceland Residents Only)

If you are a non-resident property owner in Spain and a tax resident of the EU, Norway, or Iceland, you may be eligible to deduct certain expenses from your rental income tax liability.
Keeping proper records of these expenses can help you reduce the amount of tax you owe.
Below are the key deductible expenses you should track throughout the year.

• Mortgage interest payments (only the interest portion is deductible)
• IBI (property tax) receipt from the local town hall
• Community fees for buildings or complexes with shared expenses
• Utility bills, if the landlord covers electricity, water, or gas
• Property management fees if using an agency
• Repairs and maintenance receipts for necessary work (not upgrades or improvements)
• Insurance costs for home or landlord policies

Unfortunately, Non-EU residents, such as UK nationals post-Brexit, cannot deduct rental expenses and must declare their rental income in full.

Best Practices for Managing Rental Income & Expenses Throughout the Year

Use a Digital Record-Keeping System

Manually tracking income and expenses can be overwhelming. Instead, why not consider setting up a simple spreadsheet in Google Sheets or Excel? Setting this up will only take a few moments of your time, but it will help you keep things in order throughout the year.

Even better: If you’re using IberianTax, you now have access to an integrated tracking tool built directly into the platform.
This feature allows you to record and view your rental income and expenses for each property in one central place—making tax season even more straightforward.

Download Financial Statements Regularly

To avoid last-minute stress when it comes to filing your rental income tax return in January, we recommend downloading the following documents on a regular basis:

• Rental platform earnings reports – we recommend doing this monthly
• Bank statements on a quarterly basis
• Tax receipts (IBI, community fees, etc.) as soon as payments are made

Scan and Store Receipts Online

The Spanish tax office may ask for proof of deductible expenses, so it’s important that you store these properly throughout the year. To stay organised, we recommend:

• Taking a photo of every receipt and invoice
• Store them in a cloud folder like Google Drive or Dropbox
• Name files clearly, such as ‘IBI Tax Receipt 2025’

Set Tax Reminders and File On Time

Previously, non-resident property owners had to declare rental income every quarter by submitting the Modelo 210 form. However, this has now changed to an annual basis. Your rental income tax return now has to be filed between 1st and 20th January for the previous year.

By using an online tax filing service like IberianTax, they will send you timely reminders of when your rental income tax is due to be paid each year, so you don’t need to go through any last- minute panic.

How IberianTax Makes Rental Tax Filing Simple for Non-Residents

Filing the Modelo 210 form can be time-consuming and confusing, especially for non-residents unfamiliar with Spanish tax regulations. IberianTax takes the hassle out of tax filing by offering a fast, simple, and affordable online solution.

Here’s why non-resident landlords trust IberianTax:

• Prices start from just €79,95 – much more affordable than an accountant!
• Track your rental income and expenses directly in the platform
• Easy online filing with no paperwork or complicated forms
• Instant tax calculation to see your tax liability before filing
• Save progress and file at your own pace
• Expert support with free guidance from tax specialists
• Secure payment and tax submission without visiting a Spanish bank
• Fully approved by Agencia Tributaria as an official tax collaborator

Stress-Free Filing with IberianTax

Being a non-resident landlord in Spain doesn’t have to be complicated. With good record- keeping and the right tax filing service, it’s never been easier to stay compliant without the hassle.

To sign up for your free account with IberianTax and receive reminders of when your rental income tax is due, simply click here to get started.