Spanish Non-Resident Property Tax: Complete Deduction Guide
If you own rental property in Spain and live outside the EU, recent tax changes directly affect your income. A landmark Spanish court ruling, effective from July 2025, now allows non-EU property owners to deduct expenses against rental income in the same way EU residents can. This is a significant change that could substantially reduce your tax liability.
The Two Types of Non-Resident Property Tax in Spain
As a non-resident property owner in Spain, you are subject to the IRNR (Impuesto sobre la Renta de No Residentes). Your obligations depend on whether you rent out your property or keep it for personal use.
1. If You Rent Out Your Property
You must declare rental income and pay tax on it. Until July 2025, non-EU residents were taxed on gross rental income at 24% — with no deductions allowed. EU residents paid 19% on net income after deductions.
The court ruling changes this: non-EU residents in countries with a double tax treaty with Spain can now deduct expenses, bringing parity with EU treatment.
| Scenario | Pre-July 2025 | Post-July 2025 |
|---|---|---|
| EU resident landlord | 19% on net income | 19% on net income (unchanged) |
| Non-EU landlord (treaty country) | 24% on gross income | 24% on net income (new) |
| Non-EU landlord (no treaty) | 24% on gross income | 24% on gross income (unchanged) |
Deductible Expenses for Rental Property
- Mortgage interest payments
- Community fees (HOA charges)
- Property management fees
- Repairs and maintenance costs
- Insurance premiums
- Annual property tax (IBI)
- Depreciation (amortization) of the property
- Utility costs during rental periods
2. If You Don’t Rent Out Your Property
Even if your Spanish property is purely for personal use, you must still pay an imputed income tax. This is based on a notional rental value calculated from the property’s cadastral value.
- Rate: 1.1% of cadastral value (or 2% if not updated since 2015)
- Tax rate applied: 19% (EU residents) or 24% (non-EU)
- Filing deadline: December 31 each year
Countries with Spanish Double Tax Treaties
The following nationalities (among others) benefit from deduction rights under their treaty with Spain:
- United Kingdom ✓
- United States ✓
- Canada ✓
- Germany ✓
- Netherlands ✓
- All EU member states ✓
Key Filing Deadlines
| Tax Type | Deadline | Form |
|---|---|---|
| Rental income (quarterly) | 20th of month after quarter end | Modelo 210 |
| Imputed income (no rental) | December 31 | Modelo 210 |
| Capital gains on sale | 3 months after sale | Modelo 210 |
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