Owning a home in Spain without living there creates tax duties every year, even if you never rent it out. Spain taxes non-resident owners on an imputed income of 1.1% or 2% of the property’s cadastral value, at 19% for residents of the EU and EEA (plus Iceland, Norway and Liechtenstein) or 24% for most other owners. Rental income and sale gains are taxed too, and you file with Modelo 210. This guide explains each tax with figures and examples. It is a general overview, and your position may differ, especially under a double tax treaty with your home country. For the purchase taxes, see Spain property buying costs.
Who counts as a non-resident for Spanish tax?
You are generally tax resident in Spain if you spend more than 183 days there in a calendar year, or if your main business or economic interests are based there. Otherwise you are a non-resident, even if you own a home. The rules for non-residents are in Royal Legislative Decree 5/2004, the Non-Resident Income Tax Act (IRNR). Check your own residence status, because it changes the whole calculation.
What rates apply to non-resident owners?
The general rate is 19% for residents of the EU, Iceland, Norway and Liechtenstein, and 24% for other taxpayers. The difference matters most on rental income, because the 19% group can deduct expenses and the 24% group is often taxed on gross rent.
How is imputed income taxed when the home is not rented?
If you keep the property for your own use or leave it empty, Spain treats you as if you earned a notional income. It is calculated as 1.1% or 2% of the cadastral value (the value on the Spanish property register, not the market price), and then taxed at 19% or 24%. The percentage depends on when the cadastral value was last revised. Your cadastral value appears on the IBI bill and on the purchase deed.
Example: a home with a market price of €250,000 and a cadastral value of €100,000.
| Item | Amount |
|---|---|
| Imputed income (1.1% of €100,000) | €1,100 |
| Tax at 19% (EU/EEA resident) | €209 (≈ £180 / $230) |
| Tax at 24% (other) | €264 (≈ £220 / $300) |
Conversions are approximate and use the European Central Bank reference rates of 14 October 2026 (€1 = £0.844 = $1.120). Rates move every day.
These figures are an illustration only. The imputed income is prorated if you owned the home or had it available for part of the year only, and joint owners each declare their own share.
How is rental income taxed?
If you rent the property, you pay IRNR on the rent. Residents of the EU, Iceland, Norway and Liechtenstein can generally deduct expenses directly linked to the rental, if they are proven and documented. Other taxpayers are often taxed on the gross rent. A July 2025 ruling of the National Court opened the way for non-EU residents to deduct expenses too, but a Supreme Court decision was still pending in the sources we found, so do not rely on it without advice.
Example: rent collected of €13,000 in a year, and deductible costs of €4,600 (community fees, property tax, insurance, repairs and management).
| Case | Taxable base | Tax |
|---|---|---|
| EU/EEA resident at 19%, with deductions | €8,400 | €1,596 (≈ £1,350 / $1,790) |
| Other resident at 24%, on gross rent | €13,000 | €3,120 (≈ £2,630 / $3,490) |
The difference is large, which is why the tax rules for your nationality and residence matter before you decide to rent.
When do you file Modelo 210?
Modelo 210 is the non-resident income tax return. Deadlines depend on the type of income:
| Income | Deadline |
|---|---|
| Imputed income (home not rented) | Filed in the year after it accrues. Confirm the current deadline with the Agencia Tributaria |
| Rental income, quarterly | First 20 days of April, July, October and January, for the previous quarter |
| Rental income, annual grouping (when eligible) | First 20 days of January of the following year |
| Sale of the property | Within three months, once one month has passed since the sale |
You can file online with a digital certificate or Cl@ve, or through a gestor or tax representative who files for you. Late filing can lead to surcharges, interest and penalties. The Agencia Tributaria publishes the forms and current deadlines.
What happens when you sell?
When a non-resident sells a property, the buyer must withhold 3% of the agreed price and pay it to the tax office using Modelo 211. The seller then calculates the actual gain and files Modelo 210. If the 3% exceeds the final tax, the seller can claim a refund. Capital gains are generally taxed at 19%. A separate municipal tax on the increase in land value (plusvalía municipal) also applies, and it is normally paid by the seller.
Example: you bought for €250,000 and sell for €300,000.
- Gain before costs: €50,000. Tax at 19%: €9,500.
- Buyer withholds 3% of €300,000: €9,000.
- Remaining tax to pay when you file: €500.
Allowable costs reduce the gain, so the real figure depends on your purchase costs and improvements.
What other yearly taxes does a non-resident owner pay?
- IBI: the municipal property tax, based on the cadastral value. Rates are set by the local council and the bill is collected once a year.
- Wealth tax: can apply to non-residents with high-value Spanish assets, and thresholds depend on the region.
- Community fees, insurance and utilities are not taxes but belong in your yearly budget.
Does Portugal tax owners in the same way?
No. Portugal charges an annual municipal tax called IMI instead of an imputed income. See Portugal property taxes for non-residents for the comparison.
How do double tax treaties work?
Spain has double tax treaties with many countries, and they usually let you claim a credit in your home country for tax paid in Spain. For example, the UK-Spain treaty taxes Spanish rental income and gains in Spain and gives a credit on the UK side, and US citizens normally use the US foreign tax credit. Treaties do not remove your duty to file in Spain. Read the guides for British buyers and American buyers, and check your own country’s rules.
Can you reduce the tax legitimately?
- Keep every receipt for costs linked to rental income if your category allows deductions.
- File on time and correctly. Penalties and interest can cost more than the tax.
- Claim a refund when the 3% withheld on a sale is more than your final tax.
- Use the treaty credit in your home country so you do not pay twice on the same income.
What changes if you become a Spanish resident?
If you move to Spain and become tax resident, you stop being taxed under the non-resident rules. Residents pay Spanish personal income tax on their worldwide income, with different rates and allowances. The change can be favourable or not, so get advice before you move.
What should you do before your first filing?
- Get your NIE. See the NIE guide.
- Find the cadastral value on the purchase deed or the IBI bill.
- Decide whether you will rent the home, because it changes the filings.
- Check the double tax treaty between Spain and your country of residence.
- Consider a gestor to file Modelo 210 for you.
The whole buying journey is explained in the guide to buying property in Spain.
Frequently asked questions
Do I pay tax in Spain if I never rent out my home?
Yes. Non-resident owners pay IRNR on an imputed income of 1.1% or 2% of the cadastral value, at 19% or 24%, even when the home is empty or used only by the owner.
Do I still pay tax in my home country as well?
Possibly. Spain has double tax treaties with many countries, and your home country may give a credit for the Spanish tax. Check the treaty and your own country’s rules.
Can a gestor file Modelo 210 for me?
Yes. Many non-residents use a gestor or tax representative, who files on your behalf and can handle direct debit payment.
Does the 3% withholding on a sale mean that is my final tax?
No. The 3% is an advance payment. The final tax is based on your real gain, and you either pay the difference or claim a refund when you file.
Is the cadastral value the same as the market value?
No. The cadastral value is an administrative value on the property register, often well below the market price. It appears on the IBI bill and it is the base for imputed income.
Sources
Official sources (check these for the current rule):
- Royal Legislative Decree 5/2004: Non-Resident Income Tax Act (BOE)
- Agencia Tributaria (Spanish tax agency): non-resident forms and taxes
- Ministry of the Interior: documentation of foreign nationals (NIE)
Also cross-checked against published guides, because regional tax rates are spread across many agencies:
- Pellicer Heredia: non-resident tax in Spain and Modelo 210 (2026)
- idealista: taxes for non-residents in Spain (September 2026)
- Tejada Solicitors: buying property in Spain after Brexit (2025 court ruling on deductions)
- European Central Bank: euro reference rates
Author: David Mateo. Professional review: this guide has not yet been reviewed by a licensed lawyer or tax adviser; when it is, the reviewer will be named at the top of the page.
This is general information, not legal or tax advice. Rules and rates change, and your situation may differ. Confirm the figures with the tax authority and a qualified lawyer or tax adviser before you commit. Facts last checked on 15 October 2026.
