Non-Resident Rental Income Tax

Non-Resident Rental Income Tax (Impuesto sobre la Renta de No Residentes - IRNR) is applicable to non-resident property owners who generate rental income from their Spanish property.

Until the 2023 tax year, the submission of this tax was done quarterly through the Spanish Tax Form Modelo 210 to the Agencia Tributaria (national tax authority). Recent legislative updates have modified the submission process for this tax, transitioning from quarterly to annual filings, starting from the 2024 tax year.

Multiple property owners

In Spain, joint owners are required to file their tax returns separately. Each co-owner must report their share of the property and file accordingly. The total tax amount will be split according to each person's percentage of ownership.

Calculation of Rental Income Tax

The Rental Income tax is calculated as follows: (Rental Income - Deductible Expenses*) x Tax Rate.

*EU, Iceland, Norway, and Liechtenstein residents are eligible to deduct expenses from their rental income. However, non-EU residents do not have the option to deduct expenses.

It's important to note that expenses can only be deducted if they are directly connected to the generation of rental income. These expenses may include maintenance costs, local taxes, property management fees, advertising expenses, and other costs incurred to generate rental income. However, most of these expenses are deductible proportionally based on the number of rental days during the quarter/year.

Our online platform streamlines the entire process of filing your Rental Income tax return. You can easily enter your rental income and deductible expenses for each quarter, and our system will automatically calculate your tax liability.

Non-Rented Days

If your property remains unrented for certain periods, you need to declare these non-rented days in the annual Imputed Income tax return.

Case studies

Here are some examples of how the imputed income tax is calculated.

Example One

EU resident, who owns a property in Mallorca - single owner

Tax year 2023
Quarter 1 (January to March)
Rental Income: 3000€
Rental Expenses: 1800€ (1200€ deductible expenses)
One owner: German
Tax rate EU: 19%
Tax calculation: (3000-1200) x 19% = 342€
Total to pay 342€

Example Two

UK residents who owns a property in Marbella - single owner

Tax year 2023
Quarter 3 (July to September)
Rental Income: 3000€
Rental Expenses: 1800€
Two owners: British
Tax rate non-EU: 24%
Tax calculation: 3000€ x 24% = 720€
Total to pay 720€

Example Three

EU resident, who owns a property in Tenerife, Spain - joint ownership

Tax year 2023
Quarter 2 (April to June)
Rental Income: 2400€
Rental Expenses: 1200€ (800€ deductible expenses)
Two owners: French
Tax rate EU: 19%
Tax calculation: (2400-800) x 19% = 304€
Total to pay 304€

Pricing

Filing online with IberianTax is significantly cheaper than using an accountant.

Plus, it's simple to do and can be done from anywhere, anytime!

1 OWNER


44,95€

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2 OWNERS


79,95€

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3 OWNERS


119,95€

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4 OWNERS


159,95

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All you need to do is create an account, and complete the simple questionnaire with our step by step guidance. We will then calculate your tax for you. Then you simply choose how to pay from the 3 payment options available and we will submit your Modelo 210 directly to the AEAT. It's that easy!

File your Modelo 210 today.
Tax returns made simple

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