How is non-resident rental income taxed in Spain?

Short answer

Non-resident property owners in Spain must declare rental income to the Spanish tax authorities. The tax rules depend on whether you are an EU/EEA resident or from outside Europe. Even if you already pay tax in your home country, rental income from property in Spain is always taxable locally. Filing correctly avoids fines, interest, and delays when selling.

Tax rates and deductions

EU/EEA residents: Taxed at 19% on net income. You can deduct allowable expenses such as mortgage interest, repairs, community fees, IBI property tax, insurance, professional fees, utilities used by tenants, and depreciation. Expenses must relate directly to the rental period and must be supported by proper invoices (facturas).
Non-EU residents: Taxed at 24% on gross income with no deductions allowed. Each co-owner must file separately for their share of the rental income.

Filing obligations (Form 210)

Rental income must be reported on Form 210, normally filed quarterly in January, April, July, and October. Each property and each owner requires its own return. Payment is made electronically or through a gestor. Supporting documents must be kept for at least five years as the tax office may request them.

Holiday lets vs long-term rentals

Both are taxable, but holiday lets are monitored more closely due to tourism laws. Owners must have a valid tourist licence (VFT), display the licence in all adverts, and register guests with the police if required. Some holiday rental costs (e.g., cleaning, laundry) are deductible for EU/EEA residents. Failure to comply can trigger both tax fines and tourism penalties.

Compliance pitfalls

• Late filing: Missed deadlines lead to surcharges and interest.
• Poor documentation: Receipts alone are insufficient – proper invoices are required.
• Mixing personal use and rentals: Expenses must be prorated according to rental periods.
• Unlicensed holiday rentals: Exposes you to additional fines from the Junta de Andalucía.

Example

An EU resident earns €12,000 in annual rent and spends €4,500 on deductible expenses. Taxable income = €7,500. Tax due = 19% × €7,500 = €1,425, split across quarterly returns. A non-EU resident with the same income pays 24% × €12,000 = €2,880, since no expenses are deductible.

Next steps

Work with a local tax advisor to ensure timely filing and maximise deductions if eligible. Coordinating with a gestor also helps integrate tax compliance with your tourist licence obligations.

Related articles: Taxes and Fees for Owners · Short-Term Rental Rules 2025