2% or 1.1%? How to calculate the imputed income tax (Modelo 210) in Spain?

How the non-resident tax in Spain is calculated

When it comes to the non-resident tax return (Modelo 210) for not rented properties, non-resident property owners must declare an imputed income for the days during which the property was at their disposal in the last calendar year. In order to calculate this deemed income, the relevant data are the Cadastral value ("Valor Catastral") and the imputed percentage attributed to the municipality where the property is located.

Cadastral value

The cadastral value is a valuation of the property carried out by the General Directorate of Cadastre ("Dirección General del Catastro"), which is part of the Spanish Ministry of Finance. This valuation is only used for tax purposes and does not correspond to the market value.

The cadastral value can be found on the local or council tax, commonly referred to as IBI or SUMA, which is issued by the local council where the Spanish property is located. In Spanish, it is known as "Valor catastral total" or “Valor Catastral”.

Imputed percentage (Modelo 210)

The imputed income is calculated by applying the following imputed percentages:

• As a general rule, the applicable percentage is 2% on the cadastral value. 
• However, a 1.1% can be applied for those properties whose cadastral value has been under a collective valuation procedure that has come into force in the current tax period or within the ten previous tax periods. 

Most non-residents are confused about what percentage is applicable and automatically apply the reduced imputed percentage (1.1%). The reason is usually that before January 1st 2015 the legislation stated that any municipality where the cadastral value was reviewed from 1994 could apply the 1.1% reduced percentage. However, the legislation changed in 2015 and only the municipalities where Cadastral values have been reviewed in the last 10 years could apply the 1.1% imputed percentage.

How do I know if the reduced rate is applicable in my municipality? Fortunately, this information is available on the Agencia Tributaria website for each tax year. It could be easily found in the section for Modelo 100, as the Spanish tax residents have also to declare an imputed income on second homes, and it is 100% applicable to the non-resident tax return. 

Click here to see the list of the municipalities (per region) that can use the 1.1% so as to calculate the imputed income in 2021. The rest of the municipalities (not included in the list) must apply a 2% imputed percentage. 

The information is also available from the Catastro website: https://www.catastro.meh.es/esp/ponencia_valores.asp

www.iberiantax.com is always up-to-date and in accordance with the Spanish tax legislation. Therefore, by using our tax filing service you can feel confident that your non-resident taxes are done right and the imputed percentage used for the calculation of the tax is correct. 

In case of doubt, you can also reach our Support team (support@iberiantax.com) who will be happy to clarify any questions to help you get your Modelo 210 done online.