Non-Resident Rental Income Tax
Non-Resident Rental Income Tax (Impuesto sobre la Renta de No Residentes - IRNR) is applicable to non-resident property owners who generate rental income from their Spanish property.
Until the 2023 tax year, the submission of this tax was done quarterly through the Spanish Tax Form Modelo 210 to the Agencia Tributaria (national tax authority). Recent legislative updates have modified the submission process for this tax, transitioning from quarterly to annual filings, starting from the 2024 tax year.
Multiple property owners
In Spain, joint owners are required to file their tax returns separately. Each co-owner must report their share of the property and file accordingly. The total tax amount will be split according to each person's percentage of ownership.
Calculation of Rental Income Tax
The Rental Income tax is calculated as follows: (Rental Income - Deductible Expenses*) x Tax Rate.
*EU, Iceland, Norway, and Liechtenstein residents are eligible to deduct expenses from their rental income. However, non-EU residents do not have the option to deduct expenses.
It's important to note that expenses can only be deducted if they are directly connected to the generation of rental income. These expenses may include maintenance costs, local taxes, property management fees, advertising expenses, and other costs incurred to generate rental income. However, most of these expenses are deductible proportionally based on the number of rental days during the quarter/year.
Our online platform streamlines the entire process of filing your Rental Income tax return. You can easily enter your rental income and deductible expenses for each quarter, and our system will automatically calculate your tax liability.
Non-Rented Days
If your property remains unrented for certain periods, you need to declare these non-rented days in the annual Imputed Income tax return.
Case studies
Here are some examples of how the imputed income tax is calculated.
Example One EU resident, who owns a property in Mallorca - single owner |
Tax year 2023 |
Quarter 1 (January to March) |
Rental Income: 3000€ |
Rental Expenses: 1800€ (1200€ deductible expenses) |
One owner: German |
Tax rate EU: 19% |
Tax calculation: (3000-1200) x 19% = 342€ |
Total to pay 342€ |
Example Two UK residents who owns a property in Marbella - single owner |
Tax year 2024 |
Annual (1st January 2024 to 31st December 2024) |
Rental Income: 14000€ |
Rental Expenses: 8500€ |
One owner: British |
Tax rate non-EU: 24% |
Tax calculation: 14000€ x 24% = 3360€ |
Total to pay 3360€ |
Example Three EU resident, who owns a property in Tenerife, Spain - joint ownership |
Tax year 2024 |
Annual (1st January 2024 to 31st December 2024) |
Rental Income: 19000€ |
Rental Expenses: 9200€ (8000€ deductible expenses) |
Two owners: French |
Tax rate EU: 19% |
Tax calculation: (19000-8000) x 19% = 2090€ (1045€ per owner) |
Total to pay 2090€ |
Pricing
Filing online with IberianTax is significantly cheaper than using an accountant.
Plus, it's simple to do and can be done from anywhere, anytime!
From the 2024 tax year
Until the 2023 tax year
All you need to do is create an account, and complete the simple questionnaire with our step by step guidance. We will then calculate your tax for you. Then you simply choose how to pay from the 3 payment options available and we will submit your Modelo 210 directly to the AEAT. It's that easy!
File your Modelo 210 today.
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