Modelo 210: The Tax Spain Charges Non-Resident Property Owners

1. The mechanism most buyers are never told about

When a Northern European buyer purchases a flat on the Costa Dorada — as a holiday home, an investment, or a short-term rental — real estate agents and notaries typically mention the IBI (annual property rates), the purchase costs (10% ITP transfer tax plus fees), and the plusvalía on eventual sale. They routinely fail to mention the IRNR.

The IRNR (Impuesto sobre la Renta de No Residentes) is the income tax specific to Spanish non-residents. It applies as soon as you hold real estate on Spanish territory — whether you occupy it personally, rent it out, or leave it empty.

"Los propietarios de inmuebles que no sean residentes en España están sujetos al Impuesto sobre la Renta de No Residentes. En el caso de inmuebles que no generan rendimientos (sin alquilar), tributan por una renta imputada del 1,1% o 2% del valor catastral."

Agencia Tributaria — IRNR Modelo 210

2. The two situations covered by Modelo 210

Situation A — Property not rented (personal use or unoccupied)

If you use your Spanish property only for your own holidays — or if you leave it empty — you are still liable for a notional tax calculated on the renta imputada (notional imputed income).

Calculation:

• Taxable base = catastral value × 1.1% (or 2% if catastral value has not been revised for more than 10 years)
• Tax = taxable base × 19% (EU/EEA rate)

Concrete example: your apartment in Tarragona has a catastral value of €80,000.

• Catastral value revised within the last 10 years: €80,000 × 1.1% = €880 taxable base
• IRNR due: €880 × 19% = €167.20 per year

If catastral value has not been revised for over 10 years: €80,000 × 2% = €1,600 × 19% = €304 per year

Situation B — Rented property (actual rental income)

If you rent your property (long-term or short-term holiday rental with a HUT licence), the IRNR applies to actual rental income received.

Calculation for EU residents:

• Taxable base = gross rent received − deductible expenses (actual and documented)
• Tax = net base × 19%

What is deductible for EU residents: mortgage interest, community charges (cuota de comunidad), IBI (rates), building insurance, property management fees, repair and maintenance works, depreciation of the building (3% per year of the construction value — not the land value).

What is not deductible: depreciation of the land (not depreciable), personal expenses unrelated to the property.

3. Filing deadlines

The 31 December deadline for renta imputada: this is the deadline for the previous year’s notional income. Concretely, the notional income for 2025 must be declared before 31 December 2026. Many non-resident property owners are unaware of this and discover years of arrears when they sell or request a tax certificate.

4. The 3% retention on sale: the key mechanism to understand

When you sell your Spanish property as a non-resident, the buyer is legally required to withhold 3% of the sale price and pay it directly to the Agencia Tributaria via Modelo 211. This amount is treated as an advance payment on the IRNR you will owe on the capital gain.

Example: you sell for €200,000. The buyer withholds €6,000 (3%) and pays you €194,000. The €6,000 is treated as a payment on account against your final capital gains tax. If your final tax on the gain is less than €6,000, you claim back the difference via a Modelo 210 regularisation declaration.

If your property was acquired before 1995 or if you sold at a loss, the process for recovering the retention can be slow — your gestor must actively follow the case with the Agencia Tributaria.

5. Full IRNR capital gains calculation for an EU resident

6. The double taxation convention: avoiding double taxation

The double taxation convention between Spain and your home country (Belgium, Netherlands, Germany, and other EU member states) provides that real estate income is taxable in the country where the property is located — that is, Spain. Your home country must therefore exempt this income (or neutralise it via a tax credit mechanism) to avoid double taxation.

In practice: if you have declared and paid IRNR on your Spanish rental income, you should not normally pay additional home-country tax on the same income (subject to correct declaration in your home country and proper application of the convention). Your home-country accountant must be informed of this Spanish income and verify that the convention is correctly applied.

• Check your property's catastral value on sedecatastro.gob.es

  The catastral value is the basis for calculating your renta imputada. Check it directly on the Catastro portal (sedecatastro.gob.es) using the catastral reference shown on your IBI bills. Also check whether your property has undergone a catastral revision in the last 10 years — this determines whether you apply the 1.1% or 2% rate.

• File Modelo 210 before 31 December to avoid arrears

  If you have never filed Modelo 210 for your Spanish property, you may have years of arrears. The Agencia Tributaria can claim up to 4 years' arrears with penalties and interest. A voluntary regularisation before any Hacienda notice significantly reduces the penalties applied.

• Retain rental expense documentation if you let the property

  If you rent your property, keep all invoices for deductible expenses (community charges, IBI, insurance, works). These documents are essential for correctly calculating the net taxable base and justifying deductions in the event of a tax review.