Spanish tax return: modelo 210

As a property owner in Spain, you are legally obliged to pay the Spanish non-resident tax (IRNR) to pay, regardless of whether you rent out or just use the property yourself. Unlike local taxes such as IBI (SUMA), for this you will receive no invitation or acceptance giro; it concerns self-declaration via form Modelo 210.

How do you file Spanish tax returns?

You file your Spanish tax return by completing the form Modelo 210 fill in digitally and transfer the tax due to the Agencia Tributaria (the Spanish tax authorities). This process is not automatic.

It is a common misconception among foreign owners that all taxes are automatically debited. While municipal property tax (IBI/SUMA) is often done via direct debit, the Impuesto sobre la Renta de No Residentes (IRNR) an active bring debt. You are responsible for the correct calculation and timely payment.

Expert Insight: "We see in our files that almost 10% of clients have unknowingly accumulated a tax debt because they are waiting for an assessment notice that never comes. However, the Spanish tax authorities do charge penalty interest and surcharges for late payment."

Listen to our podcast episode on Modelo 210.

Declaration terms: Letting versus Own Use

The deadline for your tax return depends strictly on the use of the property: rental, own use (vacancy), or a combination of both.

1. You rent out the property (Rental income)

If you rent out your second residence, you must declare the actual rental income. Since 2024, taxpayers resident in an EU member state have been subject to a annual declaration obligation.

• Deadline: The declaration and payment must be made by 20 January of the year following the income year.

• What do you indicate? Gross rental income, where EU residents are allowed to deduct various costs (such as maintenance, IBI, insurance) on a pro rata basis.

• Tax rate: 19% for EU residents (including Belgians and Dutch).

Read more about calculating non-resident tax in Spain.

2. You do not rent out the property (Own use)

If you do not rent out the property, you will pay tax based on a 'notional rental income' (imputation). This is similar to the Belgian KI, but is calculated as a percentage of the Spanish cadastral value (valor catastral).

• Deadline: The declaration should be made before 31 December of the year following the tax year (e.g.: file 2024 return by 31 Dec 2025).

• Calculation: Usually 1.1% or 2% of the cadastral value, taxed at 19% (for EU residents).

How does the partial rental declaration work?

In mixed use (part of the year rented out, part own use), you are required to two separate calculations within your declaration cycle. You never pay double, but split the days of the year.

Calculation example: Suppose you rent out your flat in January and February 2024. The other 10 months you use it yourself or it is vacant.

1. Period Rental (Jan-Feb 2024): You pay 19% tax on the net rental income of these two months.

   • Deadline: By 20 January 2025.

2. Period Own Use (March-Dec 2024): For the remaining 300+ days, calculate the tax based on the cadastral value (pro rata).

   • Deadline: Before 31 December 2025.

Frequently asked questions (FAQ)

Is completing Modelo 210 mandatory if I have no income in Spain? Yes. Even if you do not enjoy rental income, the Spanish tax authorities consider owning a property as a form of income (imputación de rentas). You are required to file an annual declaration for personal use.

Can I deduct costs from my Spanish tax if I rent out? Yes, as an EU resident, you may deduct costs directly related to the rental (such as electricity, water, community fees, IBI and interest on your mortgage) from the gross rental income. This only applies to periods when the property is actually rented out.

What happens if I miss the 31 December deadline? If you file the tax return late, the Spanish tax authorities will automatically impose a surcharge (recargo) on top of the amount due. This surcharge increases the longer you wait. For a voluntary late tax return, the penalty is lower than if the tax authorities write to you first.

About the author: Glenn Janssens is a lawyer specialising in Spanish real estate transactions and tax regulations. Since 2017, he has been helping Belgian and Dutch individuals and entrepreneurs to safely purchase and structure real estate in Spain. He guides files from A to Z: from due diligence, ownership and tax control to estate planning and optimisation for residents and non-residents. Thanks to his years of experience, hundreds of handled files and focus on transparent communication, Glenn makes complex Spanish legislation understandable and practically applicable for every property buyer.