Rental income tax in Spain for non-residents: what you need to know

Last updated on September 2nd, 2026 at 10:41 am.

If you own a property in Spain and rent it out — or plan to — you are legally required to declare that income and pay non-resident income tax (IRNR). This applies whether you rent long-term, use holiday letting platforms, or even leave the property empty. The tax rate is 19% for EU/EEA residents or 24% for non-EU residents, and you must file using Modelo 210 with the Agencia Tributaria. EU/EEA residents can deduct rental expenses, and a landmark court ruling in July 2025 has opened the door for non-EU owners to do the same. At Ábaco Advisers, our independent fiscal team helps non-resident property owners navigate these obligations accurately, ensuring compliance while optimising their tax position in the language of their choice.

What is the IRNR and who must pay it?

The IRNR (Impuesto sobre la Renta de No Residentes) is a tax on income earned in Spain by individuals who are not Spanish tax residents. It applies to anyone who spends fewer than 183 days per year in Spain.

This tax is regulated by Real Decreto Legislativo 5/2004, de 5 de marzo, which sets out the rules for how non-residents are taxed on Spanish-source income. For property owners, the IRNR covers two distinct situations: rental income from letting the property, and deemed income (renta imputada) when the property is not rented out.

A common misconception is that tax obligations only arise when there are tenants. In reality, the Agencia Tributaria requires all non-resident property owners to file annually, even if the property sits empty throughout the year. For non-rented properties, Spanish law assumes a notional rental income calculated as a percentage of the cadastral value.

This obligation is particularly relevant for foreign buyers from countries such as Poland, the Czech Republic, or the United Kingdom, who may not be familiar with this requirement when they purchase. Failing to declare can lead to penalties and complications when you eventually sell the property, as the Agencia Tributaria reviews your tax history during the sale process.

What tax rate applies to rental income for non-residents?

The rate depends on where you hold your tax residency. Under Article 25 of the IRNR Law, the rates are as follows:

• 19% for residents of EU member states or EEA countries (Norway, Iceland, Liechtenstein) with effective tax information exchange with Spain
• 24% for residents of all other countries, including the United Kingdom post-Brexit, the United States, Canada, and Australia

The difference between these two rates is significant on its own, but the real impact comes from how the taxable base is calculated. EU/EEA residents pay 19% on their net income (after deducting expenses), while non-EU residents have traditionally paid 24% on their gross income (with no deductions).

Note: the Audiencia Nacional ruling of 28 July 2025 (SAN 3630/2025) has opened the door for non-EU residents to deduct expenses. This is discussed in detail below.

To illustrate the practical difference, consider a property generating €15,000 in annual rental income, with €5,000 in eligible expenses:

What expenses can EU/EEA residents deduct?

EU/EEA residents can deduct expenses that are directly related to the rental activity. This right is established in Article 24.6 of the IRNR Law, which allows these taxpayers to deduct the same expenses as Spanish residents under the IRPF (Personal Income Tax Law, Ley 35/2006).

The main categories of deductible expenses include:

• Mortgage interest on loans used to acquire or improve the property
• IBI (Impuesto sobre Bienes Inmuebles), the annual local property tax
• Community fees paid to the owners’ association
• Home insurance premiums
• Repairs and maintenance costs (not capital improvements)
• Property management fees and letting agency commissions
• Building depreciation, typically calculated at 3% of the construction cost (excluding land value)
• Utility bills paid by the owner during rental periods

If your property is rented only part of the year, expenses must be pro-rated to match the rental period. For the months the property is not rented, you file under deemed income rules, where no deductions apply.

One important limitation: EU/EEA non-residents cannot apply the 50% reduction on net rental income that Spanish tax residents enjoy under Article 23.2 of the IRPF Law when the property is rented as a permanent residence. This benefit remains exclusive to tax residents.

Can non-EU residents now deduct expenses? The 2025 Audiencia Nacional ruling

Yes, following a landmark ruling. On 28 July 2025, the Audiencia Nacional issued Sentencia SAN 3630/2025 (Case 636/2021), recognising the right of non-EU/EEA residents to deduct rental-related expenses when calculating their IRNR.

The case involved a US resident who owned a rental property in Barcelona. The Agencia Tributaria and the TEAC (Central Tax Administrative Court) had denied expense deductions, arguing that Article 24.6 of the IRNR Law only permitted them for EU/EEA residents. The Audiencia Nacional overturned this decision, finding that the restriction violated the free movement of capital under Article 63 of the TFEU, a principle that extends beyond EU borders.

As Araoz & Rueda’s analysis noted, the court considered that there was no justification for treating non-EU residents differently when effective tax information exchange mechanisms exist between Spain and the taxpayer’s country of residence. The expenses recognised as deductible include maintenance, insurance, depreciation, local taxes, community fees, and similar items directly linked to the rental.

There are important caveats to bear in mind:

• The ruling does not change the tax rate: non-EU residents still pay 24%, but now on net income rather than gross
• The State Attorney’s Office has appealed to the Supreme Court, so the ruling is not yet final
• The Agencia Tributaria’s online filing system for Modelo 210 does not yet reflect this change, selecting a non-EU country of residence still automatically blocks expense entries
• Taxpayers who wish to apply deductions may need to file and then request a rectification if the system does not permit direct entry

For non-EU property owners, this ruling opens the possibility of claiming refunds for the last four years of overpaid tax. Professional advice is strongly recommended before taking action.

How do you file rental income tax in Spain?

All non-resident rental income is declared using Modelo 210, the official self-assessment form from the Agencia Tributaria.

Since 2024, the filing process has been simplified thanks to Orden HAC/56/2024, de 25 de enero (published in the BOE on 31 January 2024). This regulation introduced the option of annual grouping for rental income, replacing the previous quarterly filing requirement. Key deadlines:

• Rental income (annual grouping): file between 1 and 20 April of the year following the rental period. For income earned in 2025, the deadline is 20 April 2026
• Deemed income (non-rented property): file by 31 December of the following year. For 2025, the deadline is 31 December 2026
• Bank direct debit: if paying by domiciliación bancaria, the window is 1–15 April

You can submit the form online through the Agencia Tributaria’s electronic portal using a digital certificate or Cl@ve PIN. It is also possible to submit on paper for annual filings without rental income.

If you own a property jointly, each co-owner must file a separate Modelo 210 for their share of ownership and income. This is a requirement many couples overlook.

Many non-resident owners appoint a fiscal representative (representante fiscal) in Spain to handle filings. While this is only legally mandatory for residents of non-EU/EEA countries (under Article 10 of the IRNR Law), it is highly practical for anyone who is not fluent in Spanish or unfamiliar with the tax system.

What are the consequences of not filing?

The Agencia Tributaria takes non-compliance seriously, and the consequences go beyond simple fines.

Late-filing surcharges range from 5% to 20% of the unpaid amount, depending on the delay. If the tax authority initiates an inspection before the taxpayer voluntarily corrects the situation, penalties can reach up to 150% of the unpaid tax, plus interest. For 2025, the legal interest rate applied to arrears was 3.25% annually.

Beyond financial penalties, there are practical consequences:

• When you sell your Spanish property, the buyer’s lawyer must withhold 3% of the sale price (via Modelo 211) and pay it to the Agencia Tributaria. To recover any excess, you need to submit the last four years of Modelo 210 returns. Missing returns delay refunds and may trigger inspections
• Spain has data-sharing agreements with rental platforms such as Airbnb, Booking.com, and Vrbo, making undeclared income increasingly easy to detect

If you have fallen behind, you can voluntarily regularise by filing retroactive returns for up to four years. Voluntary corrections made before a formal notice (requerimiento) from the tax office generally attract lower penalties than those imposed after an inspection.

How do double taxation treaties prevent you from paying tax twice?

Spain has signed bilateral double taxation treaties (DTTs) with over 90 countries, including all EU member states, the United Kingdom, Poland, the Czech Republic, the United States, and Canada. You can consult the full list on the Agencia Tributaria’s website.

For rental income from Spanish property, these treaties typically confirm that Spain retains the right to tax the income (as the country where the property is located). However, your country of residence will also require you to declare worldwide income. The treaty provides a mechanism (usually a tax credit) so that the tax already paid in Spain is offset against your domestic liability, avoiding double taxation.

For example, a Polish tax resident paying €1,900 in IRNR on Spanish rental income would declare that income in Poland but claim a credit for the Spanish tax already paid, in accordance with the Spain-Poland DTT.

British property owners should be aware that while the UK-Spain DTT remains in force after Brexit, they are now classified as non-EU residents for IRNR purposes. This means the 24% rate applies rather than 19%, although the 2025 Audiencia Nacional ruling may allow them to deduct expenses based on the treaty’s non-discrimination provisions.

Conclusion

Declaring rental income as a non-resident in Spain is a legal obligation that applies regardless of whether your property is rented or sits empty. The key points to take away are: all non-resident owners must file Modelo 210 with the Agencia Tributaria; EU/EEA residents pay 19% on net income while non-EU residents pay 24%; the 2024 regulatory change has simplified filing from quarterly to annual; and the 2025 Audiencia Nacional ruling has opened the door for non-EU owners to claim expense deductions, pending confirmation by the Supreme Court.

Non-compliance carries real consequences, from financial penalties to complications when selling your property. Working with an independent legal and fiscal advisor who understands the specific obligations of non-residents is the most effective way to stay compliant and avoid overpaying. At Ábaco Advisers, we support property owners through every step of the process, in the language of their choice.

If you have questions about your specific situation, we’d welcome your comments or enquiries below.

Frequently asked questions

Do I need to pay tax in Spain if my property is not rented out?

Yes. Non-residents who own property in Spain must file Modelo 210 and pay IRNR on deemed income (renta imputada), even if the property is never rented. The taxable base is calculated as 1.1% of the cadastral value (or 2% if the value has not been revised in the last ten years), taxed at 19% or 24% depending on your country of residence. The filing deadline is 31 December of the following year.

What changed about the filing frequency in 2024?

Since the 2024 tax year, non-residents can now group their rental income into a single annual filing rather than quarterly returns. This was introduced by Orden HAC/56/2024. The annual filing deadline is 1–20 April of the year following the rental period. Taxpayers may still opt for quarterly filing if they prefer.

Can a British property owner still benefit from EU tax treatment?

No. Since Brexit took effect on 1 January 2021, UK residents are classified as non-EU for IRNR purposes. This means the 24% rate applies instead of 19%, and expense deductions were historically not available. However, the July 2025 Audiencia Nacional ruling (SAN 3630/2025) may allow British owners to claim deductions based on free movement of capital principles and the non-discrimination clause in the UK-Spain double taxation treaty. This remains subject to the pending Supreme Court appeal.

What happens if I have multiple tenants during the year?

If the same property is rented to several tenants over the course of the year, you can now file a single annual Modelo 210 covering all rental income from that property. However, if you own multiple properties, you must file a separate declaration for each one. Each co-owner must also file individually for their share of ownership.

Is professional help necessary for filing Modelo 210?

While it is possible to file Modelo 210 independently through the Agencia Tributaria’s website, the process is entirely in Spanish and requires a digital certificate or Cl@ve PIN. Applying deductions correctly, handling partial-year rental calculations, and navigating double taxation treaties all benefit from professional support. Non-EU/EEA residents are legally required to appoint a fiscal representative in Spain under Article 10 of the IRNR Law.