How much income tax do non-residents pay on Spanish property?
Residents of the EU, Norway, Iceland and Liechtenstein pay 19% of net rental profit, deducting mortgage interest, IBI, community fees, insurance, repairs, management and depreciation for the days the property was let. UK and other non-EU residents pay 24% of gross rent with no deductions. Where the property is not let, both groups pay the same rates on imputed income of 1.1% or 2% of the cadastral value.
- Tax is due even when the property earns nothing.
- Rental filings are quarterly; imputed income is filed once a year.
- The rate follows your country of residence, not your nationality.
Key takeaways
- EU/EEA residents pay 19% on net rental profit after deductible expenses.
- UK and other non-EU residents pay 24% on gross rent with no deductions.
- Empty property is taxed on imputed income of 1.1% or 2% of cadastral value.
- Rental returns are quarterly; imputed income returns are annual.
- The cadastral value used differs by municipality, so the imputed charge varies regionally.
- Each co-owner files their own Modelo 210 for their share.
IRNR rates by residence and use
| Owner's residence | Rate | Taxable base — let | Taxable base — not let |
|---|---|---|---|
| Spain's EU partners, Norway, Iceland, Liechtenstein | 19% | Net profit after allowable expenses | 1.1% or 2% of cadastral value |
| United Kingdom | 24% | Gross rent, no deductions | 1.1% or 2% of cadastral value |
| United States, UAE, Switzerland, other non-EU | 24% | Gross rent, no deductions | 1.1% or 2% of cadastral value |
The 1.1% base applies where the municipality revised the cadastral value in the previous ten tax years; where it has not, the base is 2%. Part-year letting is apportioned: days let are taxed as rental income, the remaining days as imputed income.
Regional differences: cadastral values and the effective charge
IRNR rates are national, but the imputed income base is built from the cadastral value, which each municipality sets and revises on its own cycle. The result is that two identically priced properties in different regions can carry very different annual charges. The table below shows the typical position by region for a €500,000 property.
| Region | Typical cadastral value vs market | Imputed base rate | Indicative annual IRNR at 24% |
|---|---|---|---|
| Madrid | ~50% (revised recently in much of the city) | 1.1% | ≈ €660 |
| Catalonia (Barcelona) | ~50% | 1.1% | ≈ €660 |
| Andalusia (Costa del Sol) | ~40–55%, varies sharply by municipality | 1.1% or 2% | ≈ €530–€1,200 |
| Balearics | ~35–50%, many values unrevised | Often 2% | ≈ €840–€1,200 |
| Valencia / Costa Blanca | ~45% | 1.1% or 2% | ≈ €590–€1,080 |
| Canary Islands | ~40% | 1.1% or 2% | ≈ €530–€960 |
Figures are indicative only — check the cadastral value on your IBI bill or at the Catastro, since it is the single figure that drives the charge.
What EU and EEA owners can deduct
- Mortgage interest (not capital repayment) on the loan secured on the property.
- IBI, rubbish charge and community fees.
- Buildings and contents insurance.
- Repairs and maintenance — but not improvements, which are capital.
- Agency, platform and management commissions.
- Utilities where paid by the landlord.
- Depreciation at 3% of the higher of construction cost or cadastral building value.
Every deduction is apportioned to the days the property was actually let. UK owners get none of these, which is why the effective UK rate is usually far above the headline 5-point difference between 19% and 24%.
Related guides
- Spain tax hub — all four taxes in one place.
- Modelo 210 filing guide
- Renting out your Spanish property: licences and tax
- Holiday-let calculator
Frequently asked
Questions from readers
How much is non-resident income tax in Spain?
19% for residents of the EU, Norway, Iceland and Liechtenstein, charged on net profit after deductible expenses. 24% for UK, US and other non-EU residents, charged on gross income with no deductions.
Do I pay Spanish income tax if I never rent the property out?
Yes. Imputed income tax applies to property available for your own use, calculated on 1.1% of the cadastral value where that value was revised in the previous ten tax years, otherwise 2%, and taxed at 19% or 24%.
When is Modelo 210 due?
Rental income returns are filed quarterly, within the 20 days following the end of each quarter. Imputed income returns are annual and due by 31 December of the year after the tax year they relate to.
Can UK owners deduct mortgage interest in Spain?
No. Since Brexit UK residents are taxed as non-EU non-residents, on gross rent at 24% with no deductions. Mortgage interest, IBI, community fees and repairs are all non-deductible for UK owners.
Do joint owners file one return or two?
Each co-owner files their own Modelo 210 for their ownership share. A couple owning 50/50 files two returns, each declaring half the income and half the expenses.
What happens if I never filed Modelo 210?
The Agencia Tributaria can assess the last four years plus surcharges and interest. Voluntary late filing before any enquiry attracts a reduced surcharge, so bringing filings up to date before a sale — when the position is checked — is far cheaper than waiting.
Does the imputed income charge vary by region?
The rate does not, but the base does. The charge is built from the cadastral value, which each municipality sets and revises on its own cycle, so identically priced properties in Madrid, Malaga and Mallorca can carry materially different annual bills.