Key Takeaways
- Residents: Rental income is taxed through your annual Renta at progressive rates, with deductible costs and a potential 60% reduction for qualifying long-term residential lets.
- Non-residents (EU/EEA): Usually taxed at 19% on net rental income and typically file via Modelo 210.
- Non-residents (non-EU): Usually taxed at 24% on gross rental income, which is the part many owners underestimate.
- If the property is empty, non-residents can still face imputed income tax, so “no rent received” does not automatically mean “no Spanish tax due.”
- Holiday lets add another layer: the tax still applies, then tourist-licence, platform-reporting, and community-rule issues sit on top.
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If you own property in Spain and rent it out, or even if you just own it and leave it empty, Spanish tax rules still apply. The two questions that change everything are whether you’re a Spanish tax resident and whether you fall into the EU/EEA or non-EU non-resident treatment. Get that split wrong and you can misjudge both your tax bill and your filing deadlines.
Tax Residents: How Rental Income Is Taxed
If you’re a Spanish tax resident, rental income is declared in your annual Renta (income tax return) and added to your general taxable base.
What’s Taxable
Gross rental income minus allowable deductions = taxable rental income.
Deductible Expenses
Residents can deduct all costs directly related to the rental:
- IBI (property tax) — proportional to rental period
- Community fees
- Insurance (home, liability)
- Mortgage interest (the interest portion only, not capital repayment)
- Repairs and maintenance (not improvements — a new boiler is deductible; a new swimming pool is not)
- Professional fees (property management, accountant, lawyer)
- Utility bills paid by the landlord
- Depreciation (amortización) — 3% of the construction value (excluding land) per year
- Advertising costs for finding tenants
- Basura (waste tax)
The 60% Reduction (Long-Term Residential Lets)
This is the big incentive: if you rent to a tenant as their primary residence (vivienda habitual) under a standard contrato de arrendamiento, you get a 60% reduction on net rental income before it’s added to your taxable base.
Example:
- Annual rent received: EUR 12,000
- Deductible expenses: EUR 4,000
- Net income: EUR 8,000
- After 60% reduction: EUR 3,200 (this is what gets taxed)
- At a marginal rate of 30%: EUR 960 tax
- Effective tax rate on gross rent: 8%
The reduction does NOT apply to:
- Short-term/holiday lets
- Commercial leases
- Properties rented to companies (even if used as employee housing)
Freshness note for 2026: deductions and rental-law incentives keep shifting, especially around long-term housing policy. Treat the 60% reduction as the baseline rule to verify against current guidance when you actually file, rather than assuming every headline about new housing measures automatically applies to your case.
Non-Residents: How Rental Income Is Taxed
EU/EEA Nationals
- Tax rate: 19% flat
- Deductions: Can deduct expenses directly related to the rental (same list as residents)
- No 60% reduction — the residential let reduction is for residents only
- Filing: Modelo 210, filed quarterly (within 20 days of each quarter end)
Non-EU Nationals (UK post-Brexit, US, etc.)
- Tax rate: 24% flat
- Deductions: NONE. Tax is on gross rental income.
- Filing: Modelo 210, filed quarterly
This is punishing for non-EU owners. Example: EUR 12,000 annual rent with EUR 4,000 expenses:
- EU resident: 19% × EUR 8,000 = EUR 1,520
- Non-EU resident: 24% × EUR 12,000 = EUR 2,880
The non-EU owner pays nearly double. That is why residency status planning matters so much for landlords with Spanish property. If you’re close to becoming resident, read the wider tax residency in Spain guide before treating this as just a filing admin problem.
Double Taxation Treaties
Spain has tax treaties with most countries (UK, US, Australia, etc.). These don’t eliminate your Spanish tax obligation — rental income from Spanish property is always taxed in Spain first. But the treaty may allow you to offset Spanish tax against your home country liability, avoiding being taxed twice on the same income.
Empty Property: Imputed Income Tax
Even if your property sits empty and generates zero rental income, non-residents must pay tax on imputed income:
- Imputed income: 2% of the cadastral value (or 1.1% if the cadastral value has been revised since 1994 — most urban properties qualify for 1.1%)
- Tax rate: 19% (EU) or 24% (non-EU) on the imputed amount
- Filing: Modelo 210, annually (by December 31 of the following year)
Example: Property with cadastral value EUR 150,000 (revised post-1994):
- Imputed income: 1.1% × EUR 150,000 = EUR 1,650
- EU owner tax: 19% × EUR 1,650 = EUR 313.50/year
- Non-EU owner tax: 24% × EUR 1,650 = EUR 396/year
Not huge amounts, but non-payment leads to penalties and interest. Many non-resident owners don’t know this obligation exists.
Short-Term/Holiday Lets
If you rent on Airbnb, Booking.com, or similar platforms:
- Tax treatment: Same as above — rental income taxed at your applicable rate (resident or non-resident)
- No 60% reduction: The residential let reduction doesn’t apply to holiday lets
- Platform reporting: Platforms are required to report rental income to Spanish tax authorities (EU DAC7 directive). Hacienda knows what you earn.
- Tourist licence required: See our short-term rentals in Spain guide
- Community rules: Many comunidades de propietarios have voted to restrict or ban tourist lets — check before assuming you can rent short-term
Practical Filing: Modelo 210 for Non-Residents
Non-resident property owners file Modelo 210 through the Agencia Tributaria (AEAT) website:
- When the property is rented: File quarterly within 20 days of quarter end (April 20, July 20, October 20, January 20)
- When the property is empty: File annually by December 31 of the following year
- You need: A digital certificate or Cl@ve PIN — or a Spanish tax representative (representante fiscal) to file on your behalf
Most non-resident owners use a gestor or accountant to handle Modelo 210 filings. Cost: EUR 100-200 per filing. Given the penalties for late filing and the complexity of the system, this is money well spent.
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Frequently Asked Questions
Do I have to pay tax on rental income from Spanish property?
Yes. Both residents and non-residents must declare and pay tax on rental income from Spanish property. Non-residents file Modelo 210 quarterly. Even if the property is empty, non-residents owe imputed income tax annually.
What is the tax rate on rental income in Spain?
Residents pay at progressive rates (19-47%), with expenses deductible and a 60% reduction available for long-term residential lets. EU/EEA non-residents pay a flat 19% on net income. Non-EU non-residents (including UK post-Brexit) pay 24% on gross income with no deductions.
Can I deduct expenses from my Spanish rental income?
Residents and EU/EEA non-residents can deduct directly related expenses (IBI, community fees, insurance, repairs, mortgage interest, depreciation). Non-EU non-residents cannot deduct any expenses — they’re taxed on gross rental income at 24%.
Do I pay tax on Spanish property even if it’s empty?
Yes, if you’re a non-resident. Spain imputes rental income on empty properties — typically 1.1-2% of the cadastral value — and taxes it at 19% (EU) or 24% (non-EU). This is filed annually via Modelo 210.
📖 Related Guides
- Buying Property in Spain
- Tax Residency in Spain
- Spain Expat Tax Deadlines
- Modelo 720 in Spain
- Short-Term Rentals in Spain
- IBI Property Tax
Last reviewed: April 2026. Rates, filing practice, and linked tax pages can change, so confirm the current position before filing or relying on an older advisor checklist.
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