Where taxpayers get caught out
Many owners assume that if they do not rent the home they owe nothing in Spain. The tax agency cross-checks the Cadastre and the Land Registry, and years of unfiled imputed-income returns generate surcharges and interest that can easily exceed the tax itself.
Which returns a non-resident owner files
| Situation | Return | When |
|---|---|---|
| Home not rented (own use or empty) | Modelo 210, imputed income | By 31 December of the following year |
| Home rented to tenants or tourists | Modelo 210, rental income | Quarterly, within 20 days after each quarter |
| Sale of the property | Modelo 210, capital gain | Within four months of the sale |
| Buyer of a non-resident's property | Modelo 211, 3% retention | Within one month of the purchase |
| Wealth above the thresholds | Modelo 714 wealth tax | Usually April to June |
Imputed income: the tax on simply owning
Spain assumes that a home available for your use produces income. The imputed income is a percentage of the cadastral value, normally 2%, or 1.1% if the value was revised in the last ten years, prorated for the days you owned it. The result is taxed at 19% or 24%. See imputed income tax for non-residents.
Rental income
If you let the property, you declare the income each quarter. Residents of the EU, Iceland and Norway pay 19% on the net income after deductible expenses such as IBI, community fees, insurance, repairs, interest and depreciation. Residents elsewhere, including the UK since Brexit, pay 24% on the gross income. See rental income tax for non-residents.
Selling your Spanish property
The gain is taxed at 19%. The buyer withholds 3% of the price and pays it to the tax office; you then file your own return and, if the 3% is more than the tax, claim the difference. We also handle the municipal plusvalía. See capital gains tax for non-residents and the 3% retention.
How we work with non-residents
- We review your previous filings and correct any gaps before the tax agency does.
- We file each return on time and send you a copy and the payment details.
- We can act as your tax representative and contact address in Spain.
- We coordinate with your home adviser so that Spanish tax is credited where a treaty allows.
An illustrative example
Based on situations we commonly see; not a specific client. A couple living in Germany had owned a flat in Palma for six years without filing anything, believing that no rental meant no tax. We prepared the six imputed-income returns voluntarily, before any notice from the tax agency, which kept the surcharges far below the penalties of an inspection.
This page is published by Castell.tax, the tax practice of Castell.law in Palma de Mallorca. It is general information; tax rules and rates change, so check your case with us before filing.
Not sure what you owe? Ask before the deadline
Send us your situation or the letter you received. A tax adviser will tell you what applies, what it could cost and what to file.
Questions about non-resident tax in Spain
Do I have to file if I never rent my Spanish home?
Yes. You file a yearly modelo 210 for imputed income unless the home is your habitual residence in Spain.
Can my spouse and I file one return?
No. Each owner files their own modelo 210 for their share of the property.
Is a tax representative compulsory?
It is compulsory for some non-EU residents in certain cases, and always advisable if you do not receive Spanish notifications.
What happens if I have not filed for years?
Voluntary late filing carries surcharges and interest, which are usually much lower than penalties after an inspection.