How much do Non-resident pay in taxes if they own property in Spain?

Owning property in Spain as a non-resident entails a series of tax obligations that are often overlooked. Complying with these obligations is essential to avoid fines and issues with the Spanish Tax Agency.

Who is considered a non-resident for tax purposes?

First, it’s important to define what is meant by non-resident. For the purposes of this article, we distinguish between two main categories:

• Residents of the EU/EEA: Individuals who are tax residents in a country of the European Union or the European Economic Area (Iceland, Liechtenstein, and Norway), provided that there is an effective exchange of tax information with Spain.

• Residents of third countries (non-EU/EEA): Individuals who are tax residents in any other country outside the EU/EEA.

This distinction is crucial, as the tax treatment differs significantly between both groups.

Note on the United Kingdom: Since Brexit, tax residents in the UK are considered residents of a third country for these purposes, and therefore lose the tax benefits granted to EU/EEA residents.

Your tax obligations depend on how the property is used. Below, we analyze the three possible scenarios.

 

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Income from renting the property

If you rent out your property in Spain, you must declare the income earned through Form 210 (Modelo 210). The method for calculating the tax depends on your country of residence.

If you are resident in the EU/EEA

You enjoy a more favorable tax regime:

• Tax rate: 19%

• Taxable base: Calculated on net income. You can deduct expenses directly related to the rental, provided you can justify them. Deductible expenses are the same as for Spanish residents under the Personal Income Tax Law (Ley del IRPF): utilities, property tax (IBI), community fees, mortgage interest, depreciation, etc.

Example: Margaret, resident in Ireland (EU), rents her apartment in Málaga for €1,000 per month. Over a quarter, she earns €3,000 and has €800 in deductible expenses (community fees, IBI, interest, etc.).

• Net income: €3,000 – €800 = €2,200

• Tax due: €2,200 × 19% = €418

If you are resident in a third country (non-EU/EEA)

The taxation is less favorable:

• Tax rate: 24%

• Taxable base: Calculated on gross income. No expenses may be deducted.

Example: Nicholas, resident in the United Kingdom, owns an identical apartment and rents it out for the same €1,000 per month. His quarterly income is €3,000.

• Gross income: €3,000

• Tax due: €3,000 × 24% = €720

Form and filing deadlines

Rental income must be declared quarterly using Form 210 within the first 20 days of April, July, October, and January.

Capital gains from selling the property

If you sell your property, the profit earned is taxable in Spain. In this case, the same rules apply to all non-residents, regardless of their country of residence.

• Tax rate: 19% on the capital gain.

• Calculation of gain: Sale price minus acquisition price (including all purchase and sale costs and taxes).

The 3% withholding

A key feature when a non-resident sells a property is the buyer’s obligation to withhold and pay 3% of the total sale price to the Spanish Tax Agency. This amount acts as a prepayment of the seller’s final tax liability.

The buyer must submit this withholding via Form 211 within one month from the date of the sale.

Example: John, resident in the United States, sells his house in Madrid for €300,000. He purchased it for €220,000 (including all costs).

• Buyer withholds and pays to Tax Agency: €300,000 × 3% = €9,000

• John’s capital gain: €300,000 – €220,000 = €80,000

• Tax due: €80,000 × 19% = €15,200

• Final settlement (Form 210): €15,200 (total tax) – €9,000 (withheld) = €6,200 to be paid

If the 3% withholding exceeds the tax due, the seller is entitled to request a refund for the difference.

Property available for own use (not rented)

One of the least-known obligations for non-residents is the duty to pay tax simply for owning a property available for personal use, even if it is not rented out and generates no direct income.

This is known as “imputed income” (imputación de renta inmobiliaria), and it applies to urban properties that are neither rented nor used for business purposes.

How is the taxable base calculated?

The taxable base is a notional income calculated by applying a percentage to the property’s cadastral value (valor catastral):

• General rule: 2% of the cadastral value shown on the IBI receipt.

• Reduced rate: 1.1% if the cadastral value has been revised within the last 10 years.

If the property was only available for part of the year (for example, because it was rented out for the rest), the imputed income is prorated accordingly.

 

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Applicable tax rate

Once the taxable base is determined, the applicable rate depends on your residence:

• EU/EEA residents: 19%

• Residents of third countries: 24%

Form and filing deadlines

This income must be declared annually using Form 210.
The filing period is the entire calendar year following the tax year in question.
For example, imputed income for 2024 can be declared between January 1 and December 31, 2025.

Example: An apartment in Marbella has a cadastral value of €150,000, last updated five years ago (so 1.1% applies). The owner does not rent it at any time during the year.

• Case 1: Klaus (EU resident) – Resident in Germany

  • Taxable base: €150,000 × 1.1% = €1,650

  • Tax due: €1,650 × 19% = €313.50

  • Filing: Form 210 before December 31 of the following year.

• Case 2: James (non-EU resident) – Resident in Canada

  • Taxable base: €150,000 × 1.1% = €1,650

  • Tax due: €1,650 × 24% = €396

  • Filing: Form 210 before the same deadline.

✅ Need help with your tax obligations in Spain?

Non-resident taxation can be complex and subject to frequent changes. Contact our team of tax experts for personalized advice and to ensure full compliance.

Planning to relocate? If you’re considering moving to or from Spain, explore our international mobility and immigration services.