Taxes for non-resident property owners in Spain

In Spain, you are a tax resident if you spend more than 183 days a year in the country, or if your main economic interests are based here. If neither condition applies, you are a non-resident for tax purposes — even if you own property, pay community fees and spend every summer in Cadaqués.

This distinction matters because non-residents pay different taxes, file different forms and face different rates from residents. The applicable law is the Ley del Impuesto sobre la Renta de No Residentes (LIRNR), Royal Legislative Decree 5/2004.

Note: your country of residence for tax purposes determines which double-taxation treaty applies and which rates you pay. EU/EEA residents generally pay lower rates than third-country residents.

This is the main recurring tax for non-resident property owners. It applies whether or not you rent the property. The mechanism depends on how you use it.

A) Property not rented out (imputed rental income)

If you own a property in Spain and do not rent it out — even if it is empty for most of the year — the Spanish tax authorities treat you as having received a notional rental income. This is called renta imputada (imputed income).

• The imputed income is calculated as 1.1% of the property's cadastral value (or 2% if the cadastral value has not been updated in the last ten years).
• That amount is then taxed at 19% for EU, EEA and Swiss residents, or 24% for all other non-residents.
• Example: cadastral value €120,000, updated within 10 years → imputed income: €1,320 → tax (EU resident, 19%): €250.80 per year.
• Filing deadline: 31 December of the year following the tax year. So for 2024, the deadline is 31 December 2025.
• Form: Modelo 210, filed online through the Agencia Tributaria.

B) Property rented out (actual rental income)

If you rent out your property — whether for long-term residential use or as a tourist rental (HUT) — you must declare the actual gross rental income received.

• EU/EEA residents may deduct certain expenses (mortgage interest, maintenance, management fees, insurance, local taxes, depreciation) from rental income before applying the 19% rate.
• Non-EU residents are taxed on the gross income with no deductions allowed, at 24%.
• Filing: quarterly declarations (April 20, July 20, October 20, January 20 of the following year). Each quarter's income is declared separately.
• If the property is only partially rented (e.g., you rent for 3 months and use it yourself for 9), you file both: rental income for the rental period, and imputed income for the remainder.

Spain levies a wealth tax on net assets held in Spain as of 31 December each year. Non-residents are only taxed on assets located in Spain (not worldwide assets).

• Exempt minimum: €700,000 for non-residents (state law). If your Spanish property and other Spanish assets together fall below this threshold, you owe nothing.
• Note for Catalunya: the Catalan government applies its own rates and thresholds for residents of Catalunya. Non-residents owning property in Catalunya are subject to state law: the €700,000 exemption and state rates apply.
• Rates: progressive, from 0.2% to 3.5% depending on the value of net Spanish assets above the exempt minimum.
• How property is valued: the higher of the cadastral value, the declared purchase price, or the value assessed by the tax authorities.
• Filing deadline: June–July of the following year. Form: Modelo 714.
• Practical note: a property purchased for €700,000 with a mortgage of €200,000 results in net taxable wealth of €500,000 — below the exemption. A property worth €900,000 with no mortgage means €200,000 above the threshold is taxable.

When you sell a Spanish property as a non-resident, two mechanisms apply simultaneously.

The 3% withholding (retención del 3%)

The buyer is legally required to retain 3% of the declared sale price and pay it to the tax authorities within 30 days of the sale. This is not a tax — it is a payment on account of any capital gains tax the seller may owe.

• The buyer files Modelo 211; the seller receives a copy.
• If the seller's actual capital gains tax liability is less than the 3% retained, they can claim a refund (Modelo 210).
• If the liability exceeds 3%, the seller must pay the difference.
• If there is no gain (you sell for the same price or at a loss), you still lose the 3% unless you file for a refund.

Capital gains tax on the gain

• Rate: 19% for EU/EEA residents; 24% for others (on the net gain).
• Calculating the gain: sale price minus acquisition cost (purchase price, notary fees, taxes paid on purchase, costs of major improvements), indexed for inflation only up to 2014.
• Filing deadline: 3 months after the sale date. Modelo 210.
• Municipal plusvalía (IIVTNU): a separate local tax charged by the municipality on the increase in urban land value during ownership. Paid by the seller. The Constitutional Court ruled in 2021 that it cannot be charged if there is no actual increase in land value — make sure it is calculated correctly.

If a non-resident owns property in Spain and dies, the heirs must pay Spanish inheritance tax on that property — regardless of where the heirs live.

• EU Regulation 650/2012: determines which country's succession law applies. A Spanish will (testamento español) avoids delays and procedural complications for heirs.
• Which tax law applies: inheritance tax on Spanish property is governed by the autonomous community where the property is located. For property in Cadaqués or Empuriabrava, Catalan rules apply. Catalunya has some reductions (reduccions) and bonuses for direct descendants and spouses, but the base rates are higher than in some other regions.
• Filing deadline: 6 months from the date of death (extendable by 6 more months if requested).
• Practical planning: making a Spanish will and structuring ownership correctly (individually, jointly, through a company) can reduce the tax burden significantly. This is worth addressing before it becomes urgent.

Not filing the IRNR at all. Many owners believe that because they pay no rent and use the property only in summer, they owe no tax. The imputed income obligation exists every year, regardless of use.

Missing the 3% withholding when selling. The buyer must retain 3% and pay it to the authorities. If they fail to do so, both parties face penalties. As a seller, you should ensure your lawyer confirms this has been filed (Modelo 211).

Not claiming the refund after the 3% is withheld. If you have no gain or a small gain, the 3% withheld may exceed your actual tax liability. You have four years to claim the refund — but many owners don't know it exists.

Incorrect imputed income calculation. Using the wrong cadastral value, or applying 1.1% when the property is entitled to 2% (or vice versa), leads to under-declarations and penalties.

Ignoring the municipal plusvalía on sale. The notary will remind you, but the calculation should be checked — especially after the 2021 Constitutional Court ruling that disallows charging plusvalía when no real gain has occurred.