Many people buy a holiday home or investment property in Spain and then move back home or to another country. The property remains in Spain, but their tax residence does not. As a result, non resident tax Spain property rules apply and can feel confusing. At Mecan Legal, we help non-resident owners understand which taxes apply, how often to file and how to avoid penalties through consistent, reliable compliance.
Which Taxes Do Non-Resident Property Owners Pay in Spain?
As a non-resident owner, you must look at several taxes, not just one. The most common is Spanish non resident income tax property, which focuses on income linked to your Spanish property. This can be real rental income or an imputed income if you use the property privately and do not rent it out.
In addition, most properties are subject to local property tax, often called IBI. This is a municipal tax based on the cadastral value of the property and is usually paid once a year. Non-residents must also keep an eye on possible wealth tax Spain non residents, especially if they hold high-value assets in Spain or worldwide, depending on the relevant rules.
Other situations can trigger plusvalía or capital gains tax, for example when you sell the property. That is why it is important to treat your Spanish property as part of a broader tax picture. A lawyer for non resident tax Spain will review your situation and explain which taxes apply now and which may apply later, such as on a future sale or inheritance.
Tax on Rental Income vs. Imputed Income for Own Use
Non-resident income tax rules distinguish between properties that are rented and properties used only by their owners or family. If you rent out the property, tax on rental income Spain non residents is calculated on the net income, after certain allowable expenses. These expenses may include items like community charges, some maintenance costs and local taxes, but the exact treatment depends on current regulations and your country of residence.
If you do not rent the property at all, you may still need to pay tax on an imputed income. In simple terms, the law assumes a notional income because you enjoy the property. The tax base is calculated using a percentage of the cadastral value and may change if that value has been revised. Even if the property stands empty for part of the year, the rule can still apply.
Many owners alternate between personal use and short-term rentals. In these cases, the year is split between periods of rental and periods of imputed use. Accurate records of rental days, rental income and expenses are essential. This mixed use often makes professional guidance especially useful, as errors are easy to make and can build up over several years.
Lawyer’s Tip:
Keep a simple yearly file with rental contracts, income, invoices and IBI receipts. When tax season arrives, your lawyer can work much faster and with fewer questions. Good record keeping reduces the risk of missed deductions and helps you respond calmly if the tax office asks for evidence.
Filing Models, Deadlines and Documentation
Non-resident property owners usually declare income or imputed income through modelo 210 Spain property. The frequency can vary depending on whether the property is rented and how often. Some owners file once a year, while others must file more regularly. The important point is to establish a clear calendar and follow it consistently.
Each property and each owner often requires its own return. If you co-own a property with a spouse or partner, both may need to file. The same applies if a property belongs to several family members or to a company. Typical documentation includes cadastral data, proof of ownership, rental contracts, evidence of income received and invoices for allowable expenses.
Deadlines are strict, and late filings can attract surcharges and interest. It is wise to align your Spanish filings with your tax calendar in your home country, so figures remain consistent. Professional tax compliance for non-resident property owners helps you build a routine. You know which documents to collect each year, when to sign, and what to expect in terms of future obligations.
How Double Tax Treaties Affect Your Overall Burden
Many countries have signed double tax treaties with Spain. These agreements aim to avoid the same income being taxed twice in full. They usually allocate primary taxing rights to one country and allow relief or credit in the other. However, they do not always remove tax completely. Instead, they shape how the total burden is shared.
For rental income from Spanish property, the treaty will often allow Spain to tax the income because the property is located there. Your country of residence may then tax the same income but offer a credit for Spanish tax already paid. The exact result depends on the treaty wording and your domestic law.
Double tax treaties can also interact with wealth taxes and capital gains. It is important to distinguish between the right to tax and the way relief is applied. A coordinated approach between advisors in Spain and in your home country can prevent mismatches. At Mecan Legal, we work with your existing advisors where needed, so the figures in your Spanish returns match those in your home country as closely as possible.
How Mecan Legal Assists Non-Resident Owners Year After Year
• Clear mapping of all taxes that may affect your Spanish property, both now and on future sale or inheritance.
• Preparation and filing of modelo 210 and related forms, with reminders so yearly obligations never slip your mind.
• Review of rental income, expenses and documentation to help you claim allowable deductions and reduce avoidable risks.
• Coordination with advisors in your home country so Spanish figures and foreign tax returns remain consistent and defensible.
• Ongoing monitoring of rule changes that may affect non-resident owners, with practical updates instead of complex technical language.
Our goal is to turn a complex and often ignored topic into a manageable routine. Many non-resident owners come to us after discovering gaps in past filings or facing questions from the tax authorities. We help them regularise their position where possible and then create a simple process for future years. When a sale or inheritance arises, we already know the property history and can advise faster and more accurately.
If you are considering a purchase or contemplating a sale, we also provide legal advice when buying or selling as a non-resident. This helps align your tax planning with the legal structure of the transaction. With the right support, your Spanish property can remain a source of enjoyment or investment, rather than a constant source of tax uncertainty.
Frequently Asked Questions
Do I have to file a Spanish tax return if I never rent out my property?
In many cases, yes. Even if you never rent the property, Spanish rules may require you to declare an imputed income each year. This reflects the personal use of the property. The declaration is usually made through the non-resident income tax return. A lawyer can confirm your exact position and help you set up a simple filing routine.
How is non-resident tax on rental income in Spain calculated?
Non-resident tax on rental income is generally based on the income you receive from tenants, minus certain allowable expenses. These expenses and the rates applied depend on current regulations and, in some cases, your country of residence. You then declare the resulting net income through the relevant returns. Professional guidance helps ensure the calculation and paperwork are consistent and defensible.
Can unpaid non-resident taxes affect a future sale of my property?
Yes, unpaid non-resident taxes can create problems when you decide to sell. Buyers and their advisors increasingly ask for evidence that the seller is up to date. The tax authorities may also check your record when issuing certificates linked to the sale. Regular compliance reduces the risk of unexpected claims, delays at completion or amounts withheld from the sale price.
How far back can the Spanish tax authorities claim unpaid non-resident taxes?
There is a general limitation period, but it can be affected by specific actions or communications in your case. In practice, authorities may review several years of returns, especially where there are signs of non-compliance. If you suspect past gaps, it is better to address them proactively. A lawyer can assess your situation and suggest realistic options to regularise past years where appropriate.