Non-Resident Tax Obligations in Spain
If you own property in Spain but do not live there as a tax resident, you have annual tax obligations. Spain taxes non-resident property owners in two main scenarios: when the property is rented out and when it sits empty. Many foreign owners are unaware of these obligations and risk fines and back-tax assessments.
Tax on Imputed Income (Empty Property)
Even if you never rent out your Spanish property, you owe tax on "imputed income." Spain assumes your property generates income simply by existing. The calculation works like this:
- Taxable base: 1.1% of the cadastral value (or 2% if the cadastral value has not been revised in the last 10 years)
- Tax rate for EU/EEA residents: 19%
- Tax rate for non-EU residents: 24%
Example (EU Resident, Property Not Rented)
- Cadastral value: EUR 150,000 (recently revised)
- Imputed income: EUR 150,000 x 1.1% = EUR 1,650
- Tax: EUR 1,650 x 19% = EUR 313.50 per year
This tax is declared annually using Modelo 210. The filing deadline is December 31st of the year following the tax year.
Tax on Rental Income
If you rent out your property, you pay tax on the rental income. The rules differ depending on your residency:
EU/EEA Residents
You can deduct allowable expenses from your rental income. These include mortgage interest, property management fees, IBI, community fees, insurance, repairs, maintenance, and depreciation (3% of the construction value). The net profit is taxed at 19%.
Non-EU Residents
You cannot deduct any expenses. The gross rental income is taxed at 24%. This makes a significant difference. On EUR 12,000 annual rental income with EUR 5,000 in expenses, an EU resident pays EUR 1,330 (19% of EUR 7,000), while a non-EU resident pays EUR 2,880 (24% of EUR 12,000).
How to File and Pay
Non-resident taxes are filed using Modelo 210 through the Spanish tax authority (Agencia Tributaria). You need a NIE number and a digital certificate or Cl@ve PIN to file online.
Filing schedule:
- Rental income: Quarterly (within 20 days after each quarter ends)
- Imputed income (empty property): Annually, by December 31st of the following year
Most non-residents hire a fiscal representative or gestor to handle filings. Expect to pay EUR 150 to EUR 300 per year for this service.
The 3% Retention on Sale
When a non-resident sells property in Spain, the buyer must withhold 3% of the sale price and pay it directly to the tax authority as an advance on potential capital gains tax. The seller can then claim a refund if their actual capital gains tax liability is lower. This process takes 3 to 6 months.
Double Taxation Treaties
Spain has double taxation treaties with most EU countries, the UK, the US, and Canada. These treaties prevent you from being taxed twice on the same income. Check your home country's treaty with Spain to understand how to claim credits or exemptions.
Plan Ahead
Non-resident taxes add to your annual ownership costs. Use our free calculator to estimate your total costs and factor in these ongoing obligations before purchasing. Being surprised by a tax bill after buying is never pleasant.