Non-resident rental income tax Spain 2026: complete step-by-step guide

If you are a tax non-resident in Spain and you own a rented property, you are required to file Form 210 (Modelo 210) to declare the income derived from that rental.

In this comprehensive guide, we cover the essential aspects of compliance:

• Filing deadlines and tax periods,
• Allowable deductible expenses (where applicable),
• How to correctly apply depreciation (amortización),
• Common pitfalls and frequent mistakes,
• Procedural steps for late filings and regularization.

Understanding Form 210 for Rental Income

Form 210 is the specific tax return for **Non-Resident Income Tax (IRNR)**. For property owners, it serves as the mechanism to declare rental yields obtained from Spanish real estate assets.

When it applies to you

This tax obligation is mandatory if:

• You are a tax resident outside of Spanish territory, and
• You hold real estate in Spain that is being rented out (residential, commercial, or otherwise).

For a broader overview of non-resident obligations, you can visit our section on Standard Form 210 Compliance.

Who is obligated to file?

The following parties must ensure they are tax-compliant:

• Non-resident legal owners of rental property in Spain.
• Non-resident co-owners (note: each individual must file a separate return according to their share).
• Non-resident usufructuaries who are entitled to receive the rental income.

Critical note for multiple owners

In cases of joint ownership, **each titleholder** is individually responsible for filing their own Form 210 proportional to their participation percentage. Unified filings are not permitted.

How to Declare Rental Income

The calculation of the tax base depends on your country of residence and the specific nature of the expenses incurred. Accuracy in this phase is vital to avoid overpayment or future audits.

The core process:

• Identify the gross rental income received.
• Assess and calculate allowable deductible expenses.
• Determine the net tax base and apply the corresponding tax rate.
• Submit the Form 210 within the statutory deadlines.

Deductible Expenses (Eligibility Criteria)

Identifying which costs are tax-deductible is a common area of confusion. A recent landmark ruling has notably expanded these rights for non-EU residents, as detailed in our analysis of IRNR deductible expenses for non-EU citizens.

Typically deductible items (subject to specific requirements):

• Mortgage interest (on loans used to acquire or improve the property).
• Community of owners' fees.
• Local property tax (IBI) and waste collection fees.
• Building and liability insurance premiums.
• Necessary repairs and maintenance costs.
• Utility bills (if borne by the landlord).
• Professional management or legal fees related to the rental.
• Amortization (statutory depreciation) of the property and specific assets.

Documentation to prepare

To ensure a robust and defensible tax return, you should maintain a digital file with the following records:

• Property Title Deeds (Escritura de compra) and purchase invoices.
• Valid Rental Contract signed by all parties.
• Invoices for all expenses claimed (must include VAT/IVA and provider's tax ID).
• Bank statements proving the receipt of rent and payment of expenses.
• Income records detailing per-period occupancy.
• Tax Identification Data (NIE and current proof of tax residence).

Depreciation (Amortización)

Depreciation is often the most significant deduction available, yet it is frequently miscalculated.

Why it matters:

It allows you to deduct a percentage of the property value annually, significantly reducing your taxable base. However, it must be calculated using the higher of the acquisition cost or the cadastral value, excluding the land portion.

Deadlines and Compliance

Filing periods for rental income are usually quarterly (for most residents) or annual. Missing these dates can result in late-filing penalties and interest charges.

If you are planning to acquire or sell property soon, understanding the long-term tax implications is essential. Our due diligence property tax report provides the necessary clarity for investors.

What happens if you miss a deadline?

Being out of compliance is a solvable issue, but it requires a proactive approach. Regularizing your tax situation voluntarily (before a formal notification from the Tax Agency) significantly reduces potential penalties.

Common Pitfalls (Avoid these errors)

1. Consolidated filings: Attempting to file one return for multiple owners.
2. Lack of documentation: Claiming expenses without having a formal invoice that meets Spanish tax requirements.
3. Inaccurate Depreciation: Using the total property value without deducting the land value, or using incorrect purchase price figures.
4. Undeclared empty periods: Forgetting that periods where the property is NOT rented also require a (different) filing for "imputed income."

Frequently Asked Questions (FAQ)

1. Do I need to file Form 210 if my rental income is very low?

Yes. There is no minimum threshold for rental income in Spain regarding Form 210 filings. Every Euro received from a Spanish property rental must be declared to the Spanish Tax Agency.

2. Can I deduct expenses if I am a resident outside the EU?

Historically, this was restricted. However, due to recent jurisprudence, residents of countries like the UK, USA, or Canada are now increasingly entitled to deduct expenses, provided they meet the same conditions as EU residents.

3. What is the tax rate for rental income?

Generally, for EU/EEA residents, the rate is 19% on the net income. For residents of all other countries (non-EU), the standard rate is 24% on the gross income, unless deductions are applicable under recent court rulings.

4. What happens if the property is vacant for some months?

During the months the property is vacant and available for your own use, you must declare "imputed income" (renta imputada). This is usually filed annually in the following year, separately from your quarterly rental income filings.

Legal Disclaimer: This article provides general information and does not constitute formal tax advice. Spanish tax law is subject to frequent updates. We recommend a personalized review of your specific circumstances.