Taxation for non-residents: how your rental income is taxed in Spain

If your Spanish property generates rental income and you are not a tax resident in Spain, you are legally required to declare that income to the Spanish Tax Agency. Many non-resident owners — particularly from the United Kingdom, Germany and the Nordic countries — are unaware of this obligation, which can lead to significant penalties.

Who is a non-resident for tax purposes in Spain?

You are considered a non-resident for Spanish tax purposes if you spend fewer than 183 days per year in Spain (on a continuous or cumulative basis) and your main economic and family interests are centred in another country. In practice, the vast majority of foreign owners of second homes on the Costa del Sol fall into this category, regardless of how often they visit.

The Non-Resident Income Tax (IRNR)

Rental income from a property located in Spain is taxable in Spain through the Impuesto sobre la Renta de No Residentes (IRNR), irrespective of the owner's country of residence. The tax rate and the base on which it applies differ depending on the owner's origin:

• EU, Norwegian and Icelandic residents (EEA): taxed at 19% on the net income, meaning they can deduct allowable expenses proportional to the period actually rented (community fees, IBI, insurance, mortgage interest, management commissions, depreciation).
• Non-EEA residents (UK following Brexit, USA, etc.): taxed at 24% on gross income, with no possibility of deducting expenses. This represents a significantly heavier tax burden.

"British owners have been taxed at 24% on gross income since Brexit. Understanding this impact before setting your rates is essential to maintaining the expected return."

Form 210: when and how to file

The IRNR is declared using Form 210 (Modelo 210), available through the Spanish Tax Agency's online portal. The filing frequency depends on the nature of the rental:

• Holiday rental: quarterly filing, within the first 20 days of April, July, October and January, covering the income from the previous quarter.
• Long-term letting: annual filing is permitted, in January of the following year.

Missing these deadlines triggers automatic late-payment interest and may initiate a tax inspection.

Deductible expenses for EEA residents

If you are entitled to deduct expenses (EU, Norway or Iceland residents), the most common allowable costs are:

• Community of owners fees
• IBI (local property tax)
• Home insurance
• Utilities (water, electricity, internet) during rented periods
• Platform commissions (Airbnb, Booking) and property management fees
• Cleaning and maintenance costs
• Property depreciation (3% per year on the construction value)
• Mortgage loan interest, where applicable

All expenses must be proportional to the number of days the property was actually rented versus the full year.

Consequences of not filing

The Spanish Tax Agency cross-references data from platforms such as Airbnb and Booking.com with its fiscal databases. Operating without declaring rental income carries a real risk of inspection. Penalties for late or missing declarations range from 50% to 150% of the unpaid tax liability, plus applicable late-payment interest.