Taxes for Non-Residents Renting Out Property in Spain – Complete Guide (2025)

If you’re a non-resident owning rental property in Spain, it’s crucial to understand your tax obligations to ensure compliance and avoid penalties. Whether you rent out your property for short-term holiday lets or long-term tenancies, you must declare and pay Non-Resident Income Tax (IRNR).

At Platinum Legal Spain, we assist non-resident landlords in navigating Spain’s rental tax system, ensuring compliance while optimizing deductions where applicable. This guide provides updated information on rental tax rates, deductions, filing deadlines, and penalties for non-compliance.

Who Needs to Pay Tax on Rental Income in Spain?

Non-residents who own property in Spain and earn rental income are obligated to declare this income and pay Non-Resident Income Tax (IRNR). Key points include:

• Applicable to both long-term and short-term rentals (e.g., Airbnb, Booking.com).
• Tax is due regardless of where the rental income is received (e.g., payments into foreign bank accounts).
• Even if the property is rented out for part of the year, all rental income must be declared.
• If the property is not rented out, non-residents may still owe non-resident property tax on imputed rental income.

Failure to declare rental income can result in fines, back taxes, and interest charges.

How Non-Resident Rental Tax Works in Spain

• Non-residents are taxed on rental income without the allowances available to residents.
• The tax rate depends on whether you are from an EU/EEA country or a non-EU country.
• Starting from 2024, rental income must be declared annually using Modelo 210.

Deductions on expenses are only available to EU/EEA residents; non-EU landlords cannot claim these deductions.

Tax Rates for Non-Resident Landlords

Your tax rate depends on your country of residence:

• EU/EEA landlords can deduct expenses such as maintenance, mortgage interest, property management fees, and community charges.
• Non-EU landlords (including UK nationals post-Brexit) cannot claim deductions and must pay tax on gross rental income.

Platinum Legal Spain helps non-resident landlords understand their tax liabilities and file returns on time.

Deductions on Rental Income – Who Can Claim Them?

EU/EEA Landlords – Allowable Deductions

If you are a tax resident in an EU or EEA country, you can deduct the following expenses:

• Mortgage interest
• Property maintenance & repairs (excluding improvements)
• Property management fees
• Community fees & property insurance
• Council tax (IBI) & garbage collection fees

Deductions must be directly related to rental income and supported by invoices.

Non-EU Landlords – No Deductions Allowed

• Since Brexit, UK residents can no longer claim deductions.
• Non-EU landlords (e.g., USA, Canada, Australia) pay tax on gross rental income.

For non-EU landlords, tax planning is essential to minimize costs.

How to Declare Rental Income – Modelo 210

• **Rental income must be declared annually using Modelo 210.

• Each tax declaration is filed per property, even if owned jointly.

• Payments must be made to the Spanish Tax Agency (Agencia Tributaria).

Platinum Legal Spain assists with Modelo 210 filings to ensure compliance.

Payment Deadlines for Non-Resident Rental Tax

Starting from 2024, the deadline for filing the annual rental income tax return is:

• •For income earned in 2024: January 1 to January 20, 2025.

Missing deadlines can result in penalties and interest charges.

Fines & Penalties for Late or Unpaid Rental Tax

• Late filing penalty: 5% to 20% surcharge, depending on the length of the delay.
• Failure to file tax returns: Tax authorities can investigate and impose fines ranging from €300 to €6,000.
• Unpaid tax debt: Accrues interest until settled.

Avoid fines by filing taxes correctly and on time.

Capital Gains Tax Rates for Non-Residents

If you are a non-resident and you decide to sell your Spanish rental property, you will be liable for Capital Gains Tax (CGT) on the profit from the sale.

Capital Gains Tax Rates for Non-Residents

• 19% for EU/EEA residents
• 24% for non-EU residents (e.g., UK, USA, Canada, Australia)

Retention of 3% on Property Sales

When a non-resident sells a property in Spain, the buyer is required by law to withhold 3% of the sale price and pay it directly to the Spanish tax authorities as an advance payment on CGT.

• If the final CGT liability is lower, the seller can apply for a refund of the excess amount.

• If the final CGT liability is higher, the seller must pay the difference.

💡 Platinum Legal Spain assists non-residents in recovering excess withheld tax and ensuring correct CGT calculations.

FAQs About Rental Taxes in Spain for Non-Residents

1. Do I need to file a tax return if my property is rented for only part of the year?

✔ Yes, you must declare rental income for the months the property was rented out.

2. Can I offset property expenses against rental income?

✔ Yes, but only if you are an EU/EEA resident. Non-EU landlords must pay tax on gross rental income.

3. What happens if I don’t declare my rental income?

✔ The Spanish tax authorities can investigate, apply fines, and demand back payments with interest. Spain collaborates with major rental platforms like Airbnb and Booking.com, making it easy to detect undeclared rentals.

4. Can the Spanish tax office check if I rent out my property?

✔ Yes, authorities track rental income through platforms like Airbnb, HomeAway, and Booking.com, cross-referencing property ownership records.

5. If I don’t rent my property, do I still need to pay tax?

✔ Yes, non-resident property owners must pay an annual tax (imputed income tax) based on the property’s cadastral value, even if the property is not rented.

6. How do I file my non-resident rental tax return?

✔ You must submit Modelo 210 to the Spanish Tax Agency (Agencia Tributaria) annually (for rental income earned in the previous year).

💡 Platinum Legal Spain can handle the entire process, ensuring compliance and avoiding penalties.

Contact Platinum Legal Spain for Expert Assistance

Navigating Spanish rental tax laws as a non-resident can be complicated, but failing to comply can lead to heavy fines and tax investigations. At Platinum Legal Spain, we provide expert tax planning, filing services, and legal guidance to ensure that non-resident landlords meet their obligations while optimizing their tax situation.

💡 Let us take care of your tax filings so you can focus on maximizing your rental income with peace of mind!

Disclaimer

Tax laws in Spain are subject to change. Always consult a tax specialist before filing your return to ensure compliance with the latest regulations.