Spanish Tax on Rental Income

If you are a non-resident with rental property in Spain you are liable to pay Spanish tax on rental income. You must file a non-resident tax return in Spain (Spanish 210 Form) and your home country. Double taxation agreements will ensure that you do not have to pay tax on the same income twice.

The income tax rate in Spain for non-residents is 19%. This applies to residents from the EU and EEA The tax rate is 24% for residents of other countries.

EU residents may deduct expenses against Spanish rental income provided such expenses are directly related to the rental income generated from the property.

The Spanish tax on rental income must be paid one month after the rent is received.

What is Tax Form 210?

Tax Form 210 is an annual non-resident tax return for landlords who obtain income in Spain without a permanent establishment.

It is also known as the Spanish Non-Resident Income Tax without permanent establishment. This form is used to declare and pay taxes on income such as rent from property, capital gains from the sale of property, and other miscellaneous income.

Our tax advisors can file your annual Spanish rental income tax return on your behalf.

Get a Free Quote

spanish property tax return

Deemed Rental Income

Deemed rental income is also known as deemed tax or imputed income tax in Spain.

If you’re a non-resident who owns a Spanish property for personal use, the tax authorities calculate an “imputed income” for you.

You need to pay tax on the “deemed rental income” for your urban property, even if you’re not renting it out.

This imputed income is either 1.1% of the property’s “valor catastral” (cadastral value) or 2% of the “valor catastral” if it hasn’t been revalued in the last 10 taxable periods.

When do I need to file my Spanish deemed tax return?

If you do not have rental income, only one annual deemed tax return has to be submitted.

The deadline for non-residents to submit a deemed tax return is 31 December of the next tax year.

If you have rental income, you need to know that the deadline in Spain for rental income tax returns is separated into 4 quarters.

20 April (for income generated in January, February, and March)
20 July (for income generated in April, May and June)
20 October
(for rental income obtained in July, August and September)
20 January (for rental income generated in October, November and December)

Property Tax in Spain

Spanish Local Property Taxes (rates) are based on the rateable value of the property and generally vary between 0.4% – 1.1%. Rates depend on whether the property is urban or rural and varies per region. They are generally due from September to November each year. An annual local tax on mains drainage & refuse collection is also payable.

Spanish Capital Gains Tax on Rental Property (CGT Spain)

Non-residents in Spain are subject to Capital Gains Tax on investment property, with rates varying depending on their country of residence.

Non-residents from EU/EEA countries face a rate of 19% Spanish Capital Gains Tax (CGT Spain), while non-residents from other countries, including the UK, will encounter a rate of 24% on the gain from the sale of the property.

The purchaser must withhold a public treasury tax of 3% of the purchase price at the time of the sale and pay it to the Spanish tax authorities within a month of the transfer.

If the amount withheld by the purchaser exceeds the CGT, the seller may claim a refund of the excess amount. A Spanish CGT tax return should be filed within three months of the payment of the withholding tax.

Spanish Wealth Tax

Non-resident owners of Spanish real estate may be obliged to pay wealth tax in Spain depending on the value of their Spanish property. The Spanish wealth tax rate ranges from 0.2% to 3.7% of the value of the property. There is a general exemption of €700,000 which is not subject to wealth tax.

spanish property tax return service

Spanish Income Tax for UK & Irish Residents

If you are resident in the UK or Ireland, you will have to pay tax on rental income in Spain for non-residents and report the revenue on your annual tax return both in Spain and your country of residence.

There are double taxation agreements in place between Spain and both Ireland and the UK, so double taxation relief will usually apply. Our tax team can advise on double taxation relief and assist with the filing of your UK or Irish tax return and the Spanish non-resident tax return (Tax Form 210) you are obliged to file.

spanish property tax return office

Request a free callback from a property tax advisor

+353 1 635 3722

Request a Callback Now

spanish tax return services

Request a free callback from a property tax advisor

+353 1 635 3722

Request a Callback Now

FAQs

  • As a non-resident property owner in Spain, do I need to file a Spanish income tax return?
  • Yes. If you own Spanish property you have an obligation to report your rental income on a Spanish income tax return.The deadline in Spain for rental income tax returns is separated into 4 quarters. 

    20 April (for income generated in January, February, and March)
    20 July (for income generated in April, May and June)
    20 October
    (for rental income obtained in July, August and September)
    20 January (for rental income generated in October, November and December)

  • When do I need to file a Spanish deemed income tax return?
  • As a non-resident, if your property is an urban property and it is not rented out, you must still pay Income tax in Spain on ‘deemed’ rental income. The deadline for non-residents to submit a deemed tax return is 31 December of the next tax year.
    In case the property is partially let Spanish Deemed income tax is applicable only for the period in which the property was vacant or occupied by the owner for personal use.
  • How is Spanish deemed income tax calculated?
  • The taxable base of the deemed rental income is calculated at 2% (or 1.1% if the value was revised in the past 10 years) of the rateable (cadastral) value of your property. The taxable base is then multiplied by the general income tax rate in Spain.
  • Am I obliged to pay Spanish wealth tax?
  • Non-residents in Spain may pay Wealth Tax depending on the net value of their Spanish property. The tax rate ranges from 0.2% to 3.7% from the value of the property. There is a general allowance of currently €700,000 which is not subject to wealth tax.
  • What are the Spanish CGT implications that I may have as a non-resident?
  • Under Spanish law, in case the seller is a non-resident, the purchaser must withhold Public treasury tax at 3% of the purchase price and pay it over to the tax authorities within a month of transfer. A reclaim may be required if the 3% paid exceeds the final Spanish Capital Gains Tax liability.

    The Spanish Capital Gains Tax return should be filed and paid within three months of the withholding tax payment.

  • How to file a Spanish property tax return online?
  • Property Tax International (PTI Returns) will assist you remotely online with the entire process of preparation and filing of tax forms in respect of Spanish rental income, deemed income, or capital gains. PTI Returns will keep you updated throughout the process and communicate directly with the Spanish tax office on your behalf.

Request a free callback from a tax professional

+353 1 635 3722

Request a Callback Now

Property Tax Rates in Spain and Deadlines

Tax Year
1st January – 31st December
Income Tax Rate
19%
Income Tax Deadline
1 month after rent is received. Quarterly returns are accepted by the 20th of the month following the end of the quarter. Deemed rent – 31st of December
Capital Gains Tax Rate
19%
Dual Tax Agreement with Ireland
Yes
Dual Tax Agreement with the UK
Yes

 

We provide tax return services to non-residents with property in Spain.

If you are a non-resident landlord in Spain, you are required to file income tax returns in both Spain (Spanish 210 Form) and your home country.

We understand that if a non-resident wants to file taxes in Spain, this process can be complicated, so our tax advisors will handle the tax paperwork, keep you updated throughout the process, and communicate directly with both your Spanish accountant (if applicable) and the Agencia Tributaria (the Spanish tax office) on your behalf.

We offer the following Spanish tax return services:

  • Spanish deemed tax return filing
  • Spanish rental income tax return filing
  • Spanish Capital Gains Tax filing
  • Assistance with Spanish tax payments
  • Coordinating with your tax resident accountant

Our experienced tax advisors can take care of this responsibility for you, ensuring you meet all Spanish tax filing deadlines and avoid penalties or interest charges.

We can also help you navigate double taxation agreements, ensuring you don’t get taxed twice.

Even if your property has not been let, you may be required to file a Spanish income tax return. We have a range of plans to suit all types of properties – whether furnished or unfurnished.

Save time and stress with PTI Returns for your non-resident tax return.

Request a free no-obligation consultation with a tax advisor and file your Spanish tax return online.

Spanish Property Tax Services & Fees

  • Initial documents review – €150
  • Complex filing fee for residents in the EU – 300€; outside of the EU – 220€
  • Additional property – €195

Multiple years discount – 10%

Available where returns for 2 or more tax years are required. This discount is applicable to the annual fees excluding any once-off fees and administrative fees and does not apply where other discounts/reductions have been granted.
Multiple tax countries discount

Clients who avail of our tax-filing services for two (or more) countries can claim a 10% discount on our fees. For example, if you file a Spanish and French income tax return, we will reduce our fee by 10%.

Note: This discount does not apply where other discounts/reductions have been granted.

Notes:

  1. All fees are inclusive of VAT.
  2. Prices are based on the provision of information in pre-agreed format – a surcharge of 20% may be applied for disorganized files.
  3. Prices are based on the provision of necessary backup documentation only – the inclusion of unnecessary documentation may result in the application of an additional charge.

Learn more about property income taxes in Spain.

Here, you will find everything you need to know about Spanish property tax for non-residents.

Request a free callback from a property tax advisor

+353 1 635 3722

When you apply through this contact form:

  1. A Spanish tax advisor will contact you
  2. After specifying with you the services you need and the tax documents required, you will receive information regarding our final fees
  3. Before we can start working on your Spanish non-resident tax return, we will need you to share the necessary property information and tax documents with our tax professionals


     

    Request a free callback from a property tax advisor

    +353 1 635 3722

    Request a Callback Now