Renting Out Property in Spain: Licences, Taxes, Rules

To rent out a home in Spain you first choose between a long-term let, governed by the housing leases law (LAU) with a minimum term of five years, and a holiday let, which needs the tourist licence of the region. Non-resident owners pay Spanish tax on the income. One guide gives 19% of the net income for residents of the EU or EEA, who can deduct expenses, and 24% of the gross income for residents elsewhere, who cannot. The return is Modelo 210, filed by calendar quarter, and an owner whose home is empty for part of the year also declares imputed income. This guide explains both types of let, the tax with a worked example, the deadlines and the checks before you let. It is general information, not tax or legal advice, and the rules for rent and tourist lets change often.

Which type of let suits you?

	Long-term let	Holiday let
Law	Housing leases law (LAU)	Regional tourism rules
Typical tenant	Resident who lives there	Tourists, by the night or week
Term	Minimum five years, seven if the landlord is a company; the tenant can leave earlier under the law	Short stays; a licence is required for lets under 30 days in almost all regions
Income	Lower and steadier	Higher but seasonal and more work
Main risk	Hard to end the contract; rent rules	Licence, community vote, fines

For the rules on tourist lets, read Spain holiday rental rules and licences. This guide focuses on the long-term let and the tax that applies to both.

How does a long-term let work?

Contract: a written lease under the LAU. The minimum term is five years, or seven if the landlord is a legal entity, and the tenant can renew annually unless there is a justified reason to end it, according to one guide.
Deposit: the law sets a deposit for housing, commonly one month’s rent, and regions require landlords to lodge it with a regional body. Check the rule for your region.
Rent increases: linked to an index such as the consumer price index unless the contract says otherwise. In areas that a region declares “stressed”, rent limits may apply, so ask a local lawyer.
Documents: an energy performance certificate and, in many regions, a habitability document.
Management: an agent can find tenants and manage the home for a fee, which is deductible if you qualify for deductions.

How is the rental income taxed for non-residents?

A non-resident owner is taxed in Spain on Spanish rental income. According to one published guide:

Owner’s residence	Rate	Taxable amount
EU or EEA	19%	Net income, after deductible expenses
Outside the EU or EEA	24%	Gross income, no deductions

The same guide notes that its own description of the rates is not fully consistent, so confirm the rates and the deductions with a Spanish tax adviser or the tax agency before you file. Deductible expenses for EU and EEA owners include mortgage interest (not capital), the IBI property tax, waste and community charges, repairs that maintain value, utilities, insurance and management fees, with invoices and proof of payment. Capital improvements are not deductible.

A worked example

A home let long term at €900 a month for a full year, with €2,400 of deductible expenses (IBI, community fees and insurance), as an illustration.

Item	EU/EEA owner	Owner from outside EU/EEA
Gross rent for the year	€10,800	€10,800
Deductible expenses	€2,400	Not deductible
Taxable amount	€8,400	€10,800
Tax rate	19%	24%
Tax due	€1,596	€2,592
Approx. in £ / $	≈ £1,300 / $1,800	≈ £2,200 / $2,900

Conversions are approximate and use the European Central Bank reference rates of 14 October 2026 (€1 = £0.844 = $1.120). Rates move every day.

This is a simplified illustration, not advice. The deductions allowed and your home-country tax treatment of the same income can change the result. See also Spain non-resident property tax for the yearly return when the home is not let.

What is Modelo 210, and when do you file it?

Modelo 210 is the non-resident income tax return. For rental income, one guide says that you report by calendar quarter, with the deadlines on 20 April, 20 July, 20 October and 20 January for the previous quarter, and that holiday lets with a lot of activity must file quarterly while long-term leases can sometimes file annually. Each co-owner files separately for their share. A fiscal representative is mandatory for owners from outside the EU and EEA, and recommended for those within them. Keep the records for at least four years, and file on time, because the guide gives penalties of 50% to 150% of the unpaid tax for late filing, plus interest.

What is imputed income?

When a non-resident owner does not let the home, or lets it for only part of the year, Spain taxes an imputed income for the empty periods, usually 1.1% or 2% of the cadastral value, according to the guide. It is filed separately in the following calendar year. Our non-resident tax article explains the yearly obligation in detail.

Which other costs should you plan for?

The IBI property tax, community fees and insurance.
Management fees and platform fees, if you use them.
Repairs and a vacancy allowance.
The cost of a fiscal representative and a tax adviser.
The tax on the eventual sale: a buyer withholds 3% of the price from a non-resident seller, and capital gains are taxed at 19% for non-residents, according to the guide. See the buying guide.

What should you check before you let?

Ask your lawyer whether the home can be let long term or short term, and under which licence.
Check the community statutes for any limits.
Get the energy certificate and the habitability documents.
Draw up the lease with a local lawyer and register the deposit.
Appoint a fiscal representative if you need one and plan the Modelo 210 calendar.
Tell your insurer how the home is used.
Test the numbers with the yield calculator on our tools page.

What are the common mistakes?

Assuming that you can end a long-term lease whenever you wish.
Letting short term without the tourist licence.
Forgetting the imputed income for empty months.
Missing the quarterly Modelo 210 deadlines.
Deducting expenses that are not allowed for your category of owner.
Not telling the insurer that the home is let.

Is a property manager worth it?

A manager can find a tenant, collect the rent and handle repairs while you live abroad. As an illustration only, a fee of 10% on €10,800 of yearly rent is €1,080 (≈ £900 / $1,200), and you must compare that with your time and the risk of a vacant or poorly maintained home. Ask what the fee covers, how long the contract lasts and who pays for repairs.

What might the return look like after tax?

Take a home bought for €200,000 and let long term at €900 a month, with €2,400 of yearly expenses, owned by an EU or EEA resident taxed at 19% on the net. Net rent is €8,400, tax is €1,596, and the income after tax is €6,804, which is about 3.4% of the price before any buying costs, mortgage interest or vacancy. This is a simplified illustration with the rate described above, not a forecast; the price you really paid, including the buying costs, lowers the percentage further.

How should you choose a tenant?

Ask for proof of income and identity, take references where you can, and put the deposit and the rules for repairs in writing. Because it is difficult to end a long-term lease early, take the time to choose.

Frequently asked questions

Do I pay tax on rent as a non-resident in Spain?

Yes. Non-resident owners are taxed on Spanish rental income. One guide gives 19% of the net income for EU and EEA residents and 24% of the gross income for others.

How long is a long-term lease in Spain?

The minimum is five years, or seven if the landlord is a legal entity, according to one guide, with annual renewal by the tenant.

When do I file Modelo 210 for rental income?

By calendar quarter, with deadlines on 20 April, 20 July, 20 October and 20 January, according to one guide. Ask your adviser which schedule applies to your let.

Do I pay tax if my Spanish home is empty?

Non-resident owners declare an imputed income for the empty periods, usually 1.1% or 2% of the cadastral value, according to the guide.

Do I need a fiscal representative?

It is mandatory for owners from outside the EU and EEA and recommended for owners within them.

Sources

Official sources (check these for the current rule):

Also cross-checked against published guides, because practice varies between notaries, registries and banks:

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.

At a glance