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Non-resident rental income tax in Spain: 19% EU on net income, 24% non-EU on gross. Modelo 210 filing, deductible expenses, worked examples.
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The amount of tax you pay on Spanish rental income as a non-resident depends entirely on where you're tax resident. EU residents benefit from significantly better treatment than non-EU residents.
| Your tax residence | Rate | Taxable base | Deductions allowed |
|---|---|---|---|
| EU/EEA (inc. UK via treaty) | 19% | Net income | Yes - most expenses |
| Non-EU (UAE, Singapore, etc.) | 24% | Gross income | No |
This difference has a massive impact on your actual tax bill.
| Item | EU resident | Non-EU resident |
|---|---|---|
| Gross rental income | €12,000 | €12,000 |
| Less: deductible expenses | ||
| - Mortgage interest | -€2,000 | Not deductible |
| - Community fees | -€1,800 | Not deductible |
| - IBI property tax | -€800 | Not deductible |
| - Insurance | -€400 | Not deductible |
| - Repairs/maintenance | -€500 | Not deductible |
| - Depreciation (3% of construction value) | -€2,400 | Not deductible |
| Taxable income | €4,100 | €12,000 |
| Tax rate | 19% | 24% |
| Tax payable | €779 | €2,880 |
The non-EU investor pays 3.7 times more tax on the same rental income.
Depreciation is the big one. On a €296,010 apartment where the construction value is approximately €220,000, annual depreciation is €6,600. This can eliminate your taxable income entirely in many cases.
Rental income is declared quarterly via Modelo 210 to the Agencia Tributaria (Spanish tax authority).
| Quarter | Period | Filing deadline |
|---|---|---|
| Q1 | January-March | 20 April |
| Q2 | April-June | 20 July |
| Q3 | July-September | 20 October |
| Q4 | October-December | 20 January |
Most non-resident owners appoint a fiscal representative or tax advisor to handle quarterly filings. Cost: approximately €300 to €600 per year for filing services.
Quarters when the property isn't rented attract imputed income tax instead:
For a property with a cadastral value of €80,000:
Spain has double taxation treaties with most countries. If you pay tax on the same rental income in both Spain and your home country, the treaty typically allows you to offset Spanish tax against your home country liability (or vice versa).
Key treaties relevant to western Costa del Sol investors:
Always consult a tax advisor in both Spain and your home country to understand your specific treaty position.
BlancaReal can refer you to qualified tax advisors who specialise in non-resident property taxation.
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Questions answered
EU residents pay 19% on net income (after deductions). Non-EU residents pay 24% on gross income (no deductions).
The quarterly tax return for non-resident property income, filed with the Agencia Tributaria. Covers both rental income and imputed income for vacant periods.
EU residents: yes. Non-EU residents: no. This is one of the key advantages of EU tax residence for property investors.
EU residents can deduct 3% of the construction value (not land value) annually as depreciation. On a €296K property with €220K construction value, that's €6,600 per year - often enough to eliminate taxable income.
Yes. Non-residents pay imputed income tax on vacant property, based on the cadastral value. It's a relatively small amount but applies every quarter the property isn't rented.
Post-Brexit, UK residents typically benefit from EU-equivalent treatment (19% on net) under the UK-Spain double taxation treaty. Confirm with a tax advisor.
UAE residents pay the non-EU rate of 24% on gross income. The UAE-Spain treaty is limited and may not fully offset this. Consult a specialist.
Quarterly for rental income (Modelo 210). Annually for imputed income if the property is vacant all year.
Quarterly filing services for non-residents typically cost €300 to €600 per year. This includes preparation and submission of Modelo 210 and annual declarations.
Technically yes, through the Agencia Tributaria website. Practically, the forms are complex and errors can result in penalties. Most non-residents use a tax advisor.
19% capital gains tax on the profit. The buyer withholds 3% of the sale price and pays it to the tax authority. If your actual CGT is less than 3%, you claim the difference back.
We refer clients to qualified tax advisors. BlancaReal doesn't provide tax advice or filing services directly.
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