Do you own property in Spain but live abroad? Here’s what you need to know about your Spanish tax obligations

If you are not a tax resident in Spain but own property here, it is important to understand your tax obligations to the Spanish Tax Authorities. This post explains the main situations in which you must file Form 210, and how your country of residence can affect your tax liability.

1. Rental income: key differences based on your country of tax residence

If you rent out a property in Spain, you must declare the income using Form 210. Tax treatment differs significantly depending on your country of residence:

• EU/EEA residents (e.g., Norway, Iceland): may deduct expenses and are taxed on the net income at 19%.
• Non-EU/EEA residents: must declare the gross income and are taxed at a flat rate of 24%, with no deductions.

What expenses can be deducted (EU/EEA residents only)?

Allowable deductions include:

• Mortgage interest (purchase/improvement)
• Property taxes (IBI), local rates (waste, water)
• Community fees and building maintenance
• Insurance (home, rental default)
• Repairs and maintenance (not improvements)
• Real estate agent/property manager fees
• Utilities paid by landlord (electricity, water, internet)
• Depreciation of property, furniture, appliances

All expenses must be documented with invoices/receipts in case of tax review.

2. Imputed rental income

Even if the property is not rented, Spanish tax law considers a notional income (imputed income). It must be declared via Form 210, calculated as:

• 1.1% or 2% of the cadastral value, depending on how recently it was revised.

Filing deadline: 31st December of the following year.

3. Property sales

As a non-resident selling property in Spain:

• Capital gain is taxed at 19%.
• The buyer withholds 3% of the sale price and pays it using Form 211.
• You can file Form 210 to reclaim any excess withheld.

4. Tax treaties and country of residence

Spain has tax treaties with many countries (e.g., France, Germany, UK, USA) to avoid double taxation. To apply the treaty:

• Review its provisions.
• Provide a valid tax residency certificate from your country.

5. Practical tips for non-residents

• Keep invoices and receipts for deductible expenses.
• Check whether the income must also be declared in your home country.
• Review the property’s cadastral value—it affects imputed income.
• Use electronic payment methods for easier documentation.
• Consider professional tax advice for rentals or sales.

6. Deadlines for Form 210

• Rental income: 1st–20th January of the following year
• Imputed income: by 31st December of the following year
• Property sale: within four months after the sale date

Do you own property in Spain and are unsure whether you’re meeting your tax obligations?

Contact us today and we’ll review your case with no obligation.