Thinking of renting out your Spanish property while living abroad? Here’s everything you need to know about the tax man, Modelo 210, and not losing your shirt.
1. First of All: Are You a Tax Resident in Spain?
This is crucial. If you spend more than 183 days a year in Spain, or your economic center of interest is there, you’re a tax resident. Everyone else is considered non-resident – and different rules apply.
This guide is for non-residents.
2. Do Non-Residents Have to Pay Tax on Rental Income in Spain?
Yes. If you own a property in Spain and rent it out (even for a weekend), the Spanish tax office (Agencia Tributaria) expects you to declare that income.
Failing to do so could result in fines, interest, or legal trouble. Spain loves paperwork – and they hate missing a cent.
3. How Much Tax Do You Pay as a Non-Resident?
- EU/EEA citizens (e.g. from the UK, Germany, France, Netherlands):
You pay 19% on your net rental income (i.e. income after allowable expenses). - Non-EU/EEA citizens:
You pay 24% on the gross income – no deductions allowed.
Yes, even if you lost money. Ouch.
4. What Expenses Can EU/EEA Non-Residents Deduct?
You’re allowed to deduct costs directly related to the rental. For example:
- Property management fees
- Repairs and maintenance
- Insurance
- Utility bills (if you pay them)
- Community fees
- Mortgage interest
- Depreciation (usually 3% of property value per year)
Important: You must keep all invoices and proof. No invoice? No deduction.
5. How and When Do You Pay? (Modelo 210)
The Spanish tax system uses Modelo 210 for non-resident income declarations.
- You file quarterly:
- Q1: Jan–Mar (file by April 20)
- Q2: Apr–Jun (file by July 20)
- Q3: Jul–Sep (file by October 20)
- Q4: Oct–Dec (file by January 20 of the next year)
Even if you earned nothing, you may still be required to file (e.g. imputed income if it’s not rented).
6. How to File Modelo 210
You can:
- Do it online at the Spanish Tax Agency website (with a digital certificate or Cl@ve)
- Use a gestor (tax agent) who handles the process for a fee (usually €100–€200/year)
Tip: It’s worth hiring a gestor the first year to avoid mistakes – Spanish bureaucracy is famously user-unfriendly.
7. What If You Don’t File?
Expect:
- Late filing penalties
- Interest on unpaid tax
- Audits or freezing of Spanish assets (in serious cases)
Spain’s tax authorities have improved international cooperation. Don’t assume they won’t notice – especially if your rental is listed on platforms like Airbnb or Booking.
8. Short-Term Rentals vs. Long-Term Rentals
Short-term rentals (under 2 months) are often treated as a business activity and may require:
- A tourism licence
- VAT (IVA) collection (rare, but possible)
- Local city tax compliance
Some regions (like Valencia) are cracking down. Check local rules or talk to a lawyer.
9. What About the Rest of the Year? (When It’s Not Rented)
Even when your property sits empty, Spain assumes you’re enjoying the sunshine privilege. So you still pay imputed income tax annually – typically 1.1%–2% of the cadastral value, taxed at 19% or 24%.
You file that once a year via another Modelo 210.
10. Final Tips
- Keep records of everything (rent agreements, expenses, bank transfers)
- Don’t skip quarterly filings
- Declare even low-income rentals (the Spanish taxman does not forgive ignorance)
- Use a gestor if unsure
- Stay updated on regional laws, especially if renting short-term
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