Declaring Property Rental Income In Spain

Spain remains a top destination for foreign buyers, many of whom rent out their properties for extra income. But if you're earning rental income from your Spanish property, you’re required by law to declare it and pay tax—whether you're a resident or not. This updated 2025 guide explains which form you need to use, how much tax you’ll pay, and how to stay compliant with Spanish tax authorities.

If you haven’t already registered your rental property, you’ll need to do so before letting it legally. This includes obtaining an occupation licence and registering it with your regional tourism authority. Once registered, income must be declared—either quarterly or annually, depending on your residency status.

Non-residents must complete Modelo 210 (IRNR – Impuesto sobre la Renta de No Residentes sin Establecimiento Permanente) and submit it quarterly by the 20th of April, July, October and January. If there are multiple owners, each must submit a separate form. Failure to submit can lead to fines and backdated tax claims.

Modelo 210 requires the following information:

• Owner’s identity and the full address of the rental property
  
  
• Cadastral reference number
  
  
• Rental income received, plus deductible expenses
  
  
• Rental period including number of days per month

Residents in Spain must declare rental income through their annual IRPF return using Modelo 100. This is submitted as part of your personal income tax declaration each spring (typically between April and June).

VAT on Tourist Rentals also applies in certain cases. If you rent out the property as a tourist accommodation and provide additional services such as cleaning during the stay, meals, or laundry—you may be subject to 10% VAT. If the rental is subleased through a platform or agent and qualifies as a commercial activity, VAT can increase to 21%.

Tax Rates for 2025 depend on your residency and nationality:

• Residents in Spain – Taxed through Modelo 100. EU/EEA nationals get standard reliefs. Income tax rate: 19%.
  
  
• Non-resident EU/EEA citizens – Taxed via Modelo 210 on net income (rent minus allowable expenses). Must provide a certificate of fiscal residence to deduct costs. Tax rate: 19%.
  
  
• Non-EU and non-resident landlords – NEW FOR 2025: Taxed at 24% on net income (rent minus allowable expenses). All non-resident owners can now claim deductions, regardless of nationality. Returns for the past four years may be eligible for amendment and possible refund.

Allowable expenses for all non-residents (EU/EEA and non-EU) and Spanish residents now include:

• Mortgage interest
  
  
• IBI property tax
  
  
• Water and electricity
  
  
• Home insurance
  
  
• Community fees
  
  
• Legal, admin and maintenance costs
  
  
• Depreciation of the property value

Note: Ensure all expenses are supported by valid receipts and relate directly to the property’s rental activity.

Registering Your Property is required before declaring income. You’ll need an occupation licence and must complete a ‘Declaración Responsable’ with your local tourism office. Properties must also meet minimum standards such as heating, air conditioning, contact phone number, tourist info, a complaints book, and safety basics like clean drinking water and a first aid kit.

Tip: Even if your property is rented out occasionally, you must still declare the income and complete the relevant forms. Spanish tax authorities now cross-check declarations with data from booking platforms, electricity usage, and bank transfers—so non-declaration carries risk.

Recent changes: As of September 2025, new court rulings allow all non-resident property owners—EU/EEA and non-EU alike—to deduct expenses for rental property on Spanish tax returns and seek refunds for previous overpayments. Consult a tax specialist if you believe you overpaid in recent years.

The article above does not constitute tax advice. Please consult a qualified Spanish tax advisor or gestor before submitting forms.