Are you a foreign property owner wondering how to declare rental income in Spain as a non- resident? Whether you’re renting out a holiday home or a long-term investment property, understanding the Spanish tax system is essential to avoid penalties and maximize your earnings.
This complete guide explains everything you need to know about the tax on rental income in Spain for non-residents, including key forms like Form 210, applicable tax rates, deductible expenses, and legal obligations. If you’ve searched for terms like how to rent a property in Spain, renta Spain, or how to declare renta in Spain, you’re in the right place.
Let’s walk through the rules, deadlines, and practical steps to help you stay compliant and financially efficient as a non-resident landlord in Spain.
Who is Considered a Non-Resident in Spain?
Under Spanish tax law, particularly as outlined in the Personal Income Tax Law (Ley 35/2006) and clarified by the Non-Resident Income Tax Law (Ley del IRNR, RDL 5/2004), an individual is considered a non-resident for tax purposes if they do not meet any of the following conditions during the calendar year:
- They reside in Spain for more than 183 days in total, whether consecutively or not. Temporary absences are still counted as presence unless the taxpayer proves tax residency elsewhere.
- Their main center or base of economic activities or interests is in Spain. This includes earning the majority of income or holding significant business operations in Spain.
- Their spouse (not legally separated) and underage dependent children habitually reside in Spain, which creates a presumption of residency unless otherwise proven.
Failing to meet all three conditions typically qualifies someone as a non-resident, meaning they are only subject to taxation in Spain on income generated within Spanish territory—most notably, rental income from Spanish properties.
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What Is Rental Income and the Concept of “Renta” in Spain?
In the context of Spanish tax law, “renta” is a broad term that encompasses all types of income received by an individual or entity. For non-residents, this specifically refers to income generated from Spanish sources, including real estate located in Spain.
Rental income, known as rendimientos del capital inmobiliario, is defined in Article 22 of Ley 35/2006 as any income derived from the lease or sublease of real estate properties, whether they are used for residential, commercial, or touristic purposes.
The main categories include:
- Long-term residential leases (typically for local tenants under lease contracts).
- Short-term lets, often furnished and rented for less than one year.
- Holiday rentals, offered through platforms such as Airbnb, Booking.com, or local agencies. These are typically subject to regional regulations and may require a tourism license.
Even if the property is rented out for only a few weeks per year, this income must be declared by the non resident owner through the appropriate tax channels. Moreover, Spanish tax authorities may classify repeated short-term rentals as an economic activity, which can bring additional fiscal and regulatory obligations.
Understanding how rental income is classified and taxed under the Non-Resident Income Tax Law (IRNR) is essential to remain compliant and avoid unexpected liabilities.
Do Non-Residents Pay Tax on Rental Income in Spain?
Yes, non-residents must pay the Non-Resident Income Tax (IRNR) on income earned from property rentals in Spain, regardless of their country of residence.
This applies even if you are renting your property informally or via platforms like Airbnb.
What Is Form 210 and When Do You Need to File It?
Form 210 is the official tax return for non-residents earning income in Spain. Here’s what you
need to know:
- When? Quarterly for rental income
- Who? All non-residents earning income from Spanish property
- How? Online or via a tax representative
Filing this form correctly helps you stay compliant and avoid penalties.
What Are the Tax Rates on Rental Income for Non-Residents?
The tax on rental income in Spain for non-residents varies depending on your residency:
- EU/EEA Residents: 19% tax rate
- Non-EU Residents: 24% tax rate
Knowing your tax rate is key when calculating your expected tax liability.
What Expenses Can Be Deducted?
Spanish tax law distinguishes between EU/EEA residents and non-EU/EEA residents when it comes to deducting expenses from rental income.
According to Article 24.6 of the Non-Resident Income Tax Law (IRNR – RDL 5/2004), only individuals who are tax residents in another European Union (EU) country or a country within the European Economic Area (EEA) that has an effective information exchange agreement with Spain, are entitled to deduct expenses directly related to the income generated.
Deductible expenses for EU/EEA residents may include:
- Property repairs and maintenance
- Management and agency fees
- Utility bills (electricity, water, gas, if not paid by the tenant)
- Insurance premiums
- Interest on mortgage loans, if directly related to the rental activity
- Local taxes, such as IBI (property tax) or garbage collection
These deductions are applied only if properly documented, and must be reported when filing
Form 210.
In contrast, non-EU/EEA residents must pay tax on the gross rental income, without any possibility to offset costs, even if they incur the same expenses.
Examples: EU vs. Non-EU Resident Scenarios
Example 1: Marie from France (EU Resident)
Marie owns a holiday apartment in Valencia and earns €12,000 per year in rental income. She incurs €3,000 in deductible expenses (management fees and repairs). Being a resident in France, an EU member state, she can deduct these costs.
- Taxable income: €12,000 – €3,000 = €9,000
- Tax rate: 19% (EU rate)
- Tax due: €1,710
Example 2: John from the UK (Non-EU Resident)
John rents out his Costa del Sol villa post-Brexit. He earns the same €12,000 annually, with
identical expenses of €3,000. However, as a UK resident, he no longer qualifies for deductions.
- Taxable income: €12,000 (no deductions)
- Tax rate: 24% (non-EU rate)
- Tax due: €2,880
What Happens If You Rent Only Part of the Year?
You only declare rental income for the months the property was rented. Income and deductible costs must be proportionally allocated based on the rental period.
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Deadlines and Penalties: Don’t Miss Your Filing Date
Non-residents must file Form 210 quarterly:
- Q1: by April 20
- Q2: by July 20
- Q3: by October 20
- Q4: by January 20
Late filing can result in penalties and interest, even if no tax is due.
Do You Need a Spanish Tax Representative?
A tax representative is required if you’re a non-EU/EEA resident. It is highly recommended for others too, as they:
- Ensure accuracy
- Avoid penalties
- Manage communication with Spanish tax authorities
FAQs About Declaring Rental Income as a Non-Resident
What if I rent via Airbnb or Booking?
You must declare all rental income, including short-term lets through platforms like Airbnb, Booking.com, or Vrbo. Spanish tax authorities may receive data from these platforms under data-sharing agreements, making it easier to detect undeclared income.
If you manage short-term rentals, you may also need a tourism license, depending on the region, and comply with additional reporting obligations.
What if I don’t receive income for a period?
If your property is empty for part of the year, you don’t declare rental income for that period. However, you may still need to file a Form 210 to report imputed income if the property is available for use.
Can I offset losses from previous years?
No, under the Non-Resident Income Tax (IRNR) regime, you cannot carry forward or offset rental losses from previous years. Each year is taxed independently, and only current-year deductions (if allowed) apply.
Do I need to declare rental income if I only rent occasionally?
Yes. Even occasional rentals generate taxable income. If you rent your Spanish property for just a few weeks a year, you must still declare the income received and pay the applicable tax rate as a non-resident landlord in Spain.
What documentation should I keep?
Keep all supporting documents for at least 4 years, including:
- Rental contracts and invoices
- Bank statements showing rental payments
- Receipts for deductible expenses (EU/EEA residents only)
These records may be requested by the Spanish Tax Agency (Agencia Tributaria) during audits.
What if I co-own the property with someone else?
Each non-resident owner must file their own Form 210, declaring their share of the rental income and, if applicable, deductible expenses. Ownership percentages are usually based on what’s stated in the title deed (escritura pública).
How do I pay the tax?
Once you submit Form 210, the system will generate a payment code. You can pay via:
- Online banking
- Spanish bank branch
- Through a Spanish tax representative
It’s important to pay before the filing deadline to avoid surcharges and penalties.
Do you have doubts about how to declare rental income in Spain as a non-resident? Contact our team today and receive a personalised tax analysis tailored to your situation as a non-resident with property in Spain.
