Form 210 for British Property Owners in Spain in 2026

Many UK residents keep a property in Spain as a second home, real estate investment or rental property for part of the year. Even if the owner does not live in Spain, they may have an obligation to file Form 210 of the Non-Resident Income Tax (NRIT).

NRIT applies to income earned in Spanish territory by individuals or entities not resident in Spain. The basic regulation is the Consolidated Text of the NRIT Law, Royal Legislative Decree 5/2004, and its Regulation, approved by Royal Decree 1776/2004. The Spanish Tax Agency (AEAT) identifies both as the basic regulation of the tax.

When must a British owner file Form 210?

A British owner with property in Spain may have to file in two main situations:

Property not rented

If the property is at the owner's disposal, even if it does not generate actual income, an imputed real estate income must usually be declared via Form 210.

The AEAT indicates that imputed income from urban properties is declared during the calendar year following the accrual, which occurs on 31 December each year.

Property rented out

If the property is rented, the owner must declare the rental income through Form 210.

For income accrued from 1 January 2024 onwards, the AEAT allows opting to group rental income from leasing or subleasing properties annually, filing Form 210 within the first twenty calendar days of January of the following year.

Tax rate for UK residents

After the United Kingdom's withdrawal from the European Union, UK tax residents are considered residents of a third country for internal NRIT purposes.

In general, the rate applicable under NRIT is 24%. The reduced rate of 19% is reserved, in general terms, for taxpayers resident in the European Union or the European Economic Area with effective exchange of tax information.

For this reason, in many cases, a British owner is taxed at 24% on the corresponding tax base.

Can a British owner deduct rental expenses?

This is the most delicate point.

The NRIT Law expressly allows EU residents and certain EEA residents to deduct expenses directly related to income earned in Spain, provided there is a direct and inseparable economic link with the activity carried out in Spain.

For residents of third countries such as the UK, the traditional administrative criterion has been much more restrictive. However, recent favourable case law allows examining, on a case-by-case basis, the possibility of defending the deduction of certain expenses linked to the rental.

This should not be presented as an automatic refund. It is a route that requires technical analysis.

Expenses worth reviewing

In a rental file, the following should normally be reviewed: IBI (property tax); homeowners' association fees; insurance; repairs and maintenance; financing interest; agency fees; property depreciation; periods actually rented; supporting documentation.

The key is not just identifying expenses, but proving their connection to the rental and correctly calculating the deductible portion.

Common mistakes by British owners

The most frequent errors are: not filing Form 210 for vacant property; filing imputed income late; declaring rentals without reviewing expenses; not keeping invoices and receipts; not separating land and building values for depreciation; believing the obligation disappears by not residing in Spain; filing a single declaration when there are several owners.

Required documentation

To properly review the case, you should have: deed of purchase; IBI receipt; cadastral certificate or cadastral data; Form 210 returns already filed; rental income receipts; expense invoices; UK tax residency certificate; ownership and ownership percentage details.

Conclusion

British owners with property in Spain must review their NRIT taxation with particular care. The property may generate tax obligations even if vacant, and if rented there may be scope to analyse whether tax has been paid correctly.

At Spain Tax Experts we review the tax situation of non-resident owners in Spain, file Form 210 and analyse whether there is a basis for requesting rectification of previous declarations.