As a non-resident property owner in Spain, you are obligated to file a non-resident tax return (Form 210) for each property you own to declare rental income.
Filing requirements until the 2023 Tax Year: Up until the 2023 tax year, rental income had to be reported quarterly. This meant submitting tax returns within the first 20 days of April, July, October, or January for income earned in the immediately preceding quarter. For instance, rental income earned between January and March needed to be declared by the first 20 days of April.
Recent changes starting from the 2024 Tax Year: From the 2024 tax year onwards, the requirement to report rental income has been updated to an annual basis. Now, if your property generates rental income in 2024 or later, you will file a single tax return to report this income. This annual declaration is due between January 1st and January 20th of the following year.
Imputed Income: It's important to note that for the periods your property is not rented out, you are still required to declare "imputed income" on an annual non-resident tax return. This declaration applies regardless of whether the property remains empty or is used for personal purposes during the unrented periods. The process for declaring imputed income remains unchanged, and this income should be reported in the year following the one in which the property was available for personal use or remained vacant.
You are required to file an annual non-resident tax return (Form 210 or "Modelo 210") for each Spanish property to declare an imputed or presumed income on that property, even if it is empty or for personal use.
Imputed income is based on the cadastral value of the property and the applicable imputed percentage (2% or 1.1% depending on the municipality).
The non-resident tax is a national tax different from any local taxes you might pay for the property such as the IBI or rubbish collection tax.
The accrual date is 31st December and the tax return should be filed within the following year. For example, the 2022 tax year is filed during the 2023 calendar year.
When your property in Spain serves dual purposes-both for rental and personal use-you have specific tax filing obligations to meet for each aspect of property use.
Filing requirements for Rental Income until the 2023 Tax Year:
For those quarters in which the property was rented out, you needed to file a non-resident tax return (Form 210) to declare the rental income. This involved quarterly submissions within the first 20 days of April, July, October, or January for income earned in the immediately preceding quarter. For instance, rental income earned from January to March required a declaration by the first 20 days of April.
Recent changes starting from the 2024 Tax Year:
Beginning with the 2024 tax year, the process for declaring rental income has shifted from quarterly to an annual basis. This means for any rental income generated in 2024 and onwards, you will submit a single annual tax return. This declaration must be completed between January 1st and January 20th of the subsequent year, simplifying the process for property owners.
Imputed Income Declaration:
For the days your property is not rented and is available for your personal use or remains empty, "imputed income" must be declared. This declaration is made through an annual non-resident tax return (Form 210), which is filed in the year following the one in which the property was available for personal use or remained vacant. The method for declaring imputed income remains consistent, regardless of the new changes for rental income.
Annual Non-Resident Tax Return Deadline:
The deadline for filing the annual non-resident tax return for imputed income has not changed. For example, imputed income for the 2023 tax year should be reported within the calendar year of 2024.
You are required to file a capital gains tax return through Modelo 210. This tax return must be filed within 4 months from the sale date.
You may be liable to the non-resident tax depending on the type of income and the applicable tax treaty. Contact us for further information.
If you are a non-resident of Spain and did not earn any income or capital gains in the Spanish territory, you are not liable for non-resident tax.