Thousands of British, Scandinavian, Dutch and German owners are quietly non-compliant with Spanish tax law — not because they're dodging anything, but because nobody told them the rules. Spain taxes you on your property every year you own it, even if it sits empty and generates nothing. There is no bill in the post. No reminder. The obligation is yours to know about, calculate, and pay. This guide covers exactly what you owe as a non-resident owner, when, and how much — with real numbers.
What tax does a non-resident pay on property in Spain? Non-residents pay annual non-resident income tax (IRNR) via Modelo 210 — either on deemed rental income if the property is empty (typically 1.1% or 2% of the catastral value, taxed at 19% for EU/EEA residents or 24% for everyone else), or on actual rental income if let. You also pay IBI (local council tax) and, above regional thresholds, wealth tax.
If you're still at the buying stage, start with the one-off costs of purchasing — this guide covers what comes after completion, year in, year out.
IRNR: The Tax Nobody Tells You About
IRNR — Impuesto sobre la Renta de No Residentes — is Spanish income tax for people who don't live in Spain. If you own Spanish property and spend fewer than 183 days a year in Spain, you're a non-resident taxpayer, and IRNR applies to you.
Here's the part that surprises new owners: you owe IRNR even if the property earns nothing. Spanish law treats an empty second home as if it generates a notional benefit for its owner — "imputed income" — and taxes it. There are two scenarios, and most owners fall into one or both in any given year.
Scenario 1: The Property Is Empty (Imputed Income)
If your property isn't rented out, Spain deems you to have received a fictional rental income based on the property's valor catastral — the official administrative value assigned by the town hall, which is almost always far below market value. You'll find it on your IBI bill.
The deemed income is:
- 1.1% of the catastral value if the value was revised within the last 10 years
- 2% of the catastral value if it wasn't
- 19% for residents of the EU, Iceland and Norway
- 24% for everyone else — including UK residents post-Brexit
Worked example: €200,000 property, empty all year
You bought an apartment on the Costa Blanca for €200,000. Its catastral value is €80,000, revised within the last decade.
| Step | Calculation | Amount |
| --- | --- | --- |
| Deemed income | €80,000 × 1.1% | €880 |
| Tax (EU/EEA resident, e.g. Swedish or Dutch owner) | €880 × 19% | €167.20 |
| Tax (non-EU resident, e.g. UK owner) | €880 × 24% | €211.20 |
Two details worth knowing. If you own the property jointly, each owner files their own Modelo 210 for their share. And if the property was empty for only part of the year, the imputed income is pro-rated by days.
Scenario 2: The Property Is Rented Out
If you let the property — long-term or holiday lets — you declare the actual rental income instead. This is where residency status bites hard:
- EU/EEA residents pay 19% on net income and can deduct allowable expenses: mortgage interest, IBI, community fees, insurance, repairs, agency and cleaning fees, utilities you pay, and depreciation (3% of the building's cost annually).
- Non-EU residents — including UK owners — pay 24% on gross income with no deductions whatsoever.
Since 2024, rental income is declared annually on Modelo 210 (previously quarterly), filed in January of the following year. For days the property sat empty between lets, you still owe pro-rated imputed income on top — the two scenarios combine within a single year.
If letting is part of your plan, read our full guide to renting out property in Spain, including licensing — because the tax filing is the easy part.
Modelo 210: How and When to File
Modelo 210 is the non-resident income tax return. It's filed online through the Agencia Tributaria, and you'll need your NIE and a digital certificate or Cl@ve — or, more realistically for most owners, a gestor or fiscal representative who files it for around €50–€150 per year.
Deadlines:
- Imputed income (empty property): file any time during the calendar year following the tax year. Your 2025 imputed income return is due by 31 December 2026.
- Rental income: file annually between 1 and 20 January of the following year.
IBI: The Local Council Tax
IBI — Impuesto sobre Bienes Inmuebles — is the municipal property tax, paid by every owner, resident or not. The rate is set by each town hall at between 0.4% and 1.1% of the catastral value (urban property), with most coastal municipalities sitting around 0.5–0.8%.
On our example property with an €80,000 catastral value, expect roughly €400–€700 a year. IBI is usually payable in late summer or autumn; set up a direct debit from your Spanish account, because the town hall won't post a bill to Manchester or Malmö, and unpaid IBI becomes a charge against the property itself.
IBI is one line in a longer list — see our full breakdown of the ongoing costs of owning property in Spain for community fees, insurance and utilities.
Wealth Tax: Only If You Own Serious Assets
Impuesto sobre el Patrimonio applies to non-residents on their Spanish assets only. The state allowance is €700,000 per person, so a couple owning a €1M villa jointly (€500,000 each) owes nothing.
Rates and allowances vary by region — Madrid and Andalucía effectively rebate it to zero, while the Comunidad Valenciana and the Balearics apply it in full above their thresholds. Non-residents can opt into the regional rules where their property sits. Separately, the national solidarity tax catches net Spanish wealth above €3 million regardless of regional rebates.
For the overwhelming majority of holiday-home owners, wealth tax is a non-issue. If your Spanish holdings exceed €700,000 per owner, take proper advice — structuring at purchase matters.
When You Sell: Plusvalía and Capital Gains
Two taxes bite on exit:
- Plusvalía municipal — a town-hall tax on the increase in the *land's* catastral value during your ownership. It's calculated by the municipality, typically runs from a few hundred to a few thousand euros, and is payable within 30 days of sale. Since the 2021 reform, you can opt to be assessed on the actual gain if that's lower, and no gain means no tax.
- Non-resident capital gains tax — 19% on the gain for all non-residents. Crucially, the buyer must withhold 3% of the full sale price and pay it to the tax office (Modelo 211) on your behalf. You then file Modelo 210 to settle the difference — or reclaim the excess. Spain will not refund that 3% if your IRNR filings for previous years are missing. This is how unfiled returns get discovered.
Double Taxation: Will You Pay Twice?
No — Spain has double taxation treaties with the UK, Sweden, the Netherlands, Germany and every other market Voya buyers come from. The principle is consistent across all of them: Spain has the primary right to tax income and gains from Spanish property, and your home country gives you credit for Spanish tax paid.
In practice:
- UK: declare Spanish rental income and gains to HMRC; Spanish tax paid is credited against your UK liability under the 2013 UK–Spain treaty.
- Sweden, Netherlands, Germany: similar credit or exemption-with-progression mechanisms apply — Spanish rental income may push up the rate on your home income even where it isn't taxed twice.
Your Annual Tax Calendar as a Non-Resident Owner
| Tax | When | Typical cost (€200k property, €80k catastral) |
| --- | --- | --- |
| IBI | Late summer/autumn (varies by municipality) | €400–€700 |
| IRNR — imputed (empty) | Any time in the following calendar year | €167–€211 |
| IRNR — rental income | 1–20 January following the tax year | 19% net (EU) / 24% gross (non-EU) |
| Wealth tax | June following the tax year, if over threshold | €0 for most owners |
What Happens If You Don't File?
Nothing — for a while. That's the trap. The Agencia Tributaria can go back four years, and when it does, you pay the original tax plus late-filing surcharges of up to 15% (if you file voluntarily before being chased) or penalties of 50–150% of the tax due plus interest if they find you first. On €200 a year of imputed income tax, four years of arrears is an annoyance. On four years of undeclared rental income, it's a serious bill.
The most common discovery points: the 3% retention when you sell, a mortgage application, an inheritance, or the increasingly routine data-matching between the Land Registry, utility companies and tourist-let platforms — Airbnb and Booking.com now report host income to Spanish tax authorities under EU DAC7 rules, and Spain receives that data for UK hosts too. If you're behind, file voluntarily before they write to you; the surcharge regime is dramatically kinder.
Frequently Asked Questions
Do I really owe tax if my Spanish property is empty all year? Yes. Spain taxes non-resident owners on imputed income — a notional 1.1% or 2% of the catastral value, taxed at 19% (EU/EEA) or 24% (everyone else). For most holiday homes this works out at €150–€400 per owner per year.
Do UK owners pay more since Brexit? Yes, on two fronts: the IRNR rate is 24% instead of 19%, and rental income is taxed on the gross with no expense deductions. The imputed-income charge on an empty property rises modestly; the hit on landlords is substantial.
Can I file Modelo 210 myself? Yes, online, if you have an NIE and a digital certificate or Cl@ve. In practice most non-residents use a gestor or fiscal representative for €50–€150 a year — cheap insurance against missed deadlines and mis-calculated pro-rating.
Is IBI the same as IRNR? No. IBI is a local council tax billed by the town hall; IRNR is national income tax you must self-assess and file. Paying one does not cover the other — you owe both, every year.
Will I be taxed again at home on Spanish rental income? You must declare it at home, but double taxation treaties with the UK, Sweden, the Netherlands and Germany credit the Spanish tax paid against your home liability, so the same income isn't taxed twice in full.
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Budgeting for a Spanish purchase means the annual bill, not just the purchase price. Browse properties on Voya →
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*This guide is for informational purposes only and is not tax advice. Rates, allowances and deadlines change — confirm your position with the Agencia Tributaria or a qualified Spanish fiscal adviser before filing.*
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