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Rental income tax in Spain for non-resident property owners
Renting out your Spanish property can generate attractive returns, but the tax treatment differs significantly depending on whether you are an EU/EEA resident or not. This guide explains the rules, rates and filing obligations.
The essentials
7 min full read- 1EU/EEA residents pay 19% on net rental income (after deducting expenses)
- 2Non-EU residents (UK, US, etc.) pay 24% on gross income — no expense deductions allowed
- 3Filing is quarterly (Form 210) within 20 days of each quarter end
- 4Tourist rental licences are required in most regions — check before advertising
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EU vs non-EU: a critical distinction
The tax treatment of rental income depends entirely on where you are tax resident, not on your nationality:
| Factor | EU/EEA resident | Non-EU resident (UK, US, etc.) |
|---|---|---|
| Tax rate | 19% | 24% |
| Tax base | Net income (after expenses) | Gross income (no deductions) |
| Deductible expenses | Mortgage interest, insurance, repairs, IBI, community fees, depreciation | None |
| Effective tax on €1,000/month rent | ~€100-150/month | €240/month |
Tax rate
19%
24%
Tax base
Net income (after expenses)
Gross income (no deductions)
Deductible expenses
Mortgage interest, insurance, repairs, IBI, community fees, depreciation
None
Effective tax on €1,000/month rent
~€100-150/month
€240/month
Post-Brexit impact for UK ownersBefore Brexit, UK residents were taxed as EU residents (19% on net income). Since January 2021, UK residents pay 24% on gross income with no deductions. This roughly doubled the effective tax rate for many UK landlords.
Deductible expenses (EU/EEA residents only)
If you are tax resident in an EU or EEA country, you can deduct the following expenses from your rental income:
- •Mortgage interest — only the interest portion, not principal repayment
- •Property insurance — home insurance and liability insurance
- •Repairs and maintenance — not improvements or renovations
- •IBI (council tax) — proportional to rental period
- •Community fees — proportional to rental period
- •Management/agency fees — if you use a rental management company
- •Depreciation — 3% of the construction value (not land) per year
- •Legal and accounting fees — related to the rental activity
- •Utility bills — if you pay them (not the tenant)
Filing obligations
Rental income is filed quarterly using Form 210. Each quarter covers rental income received in that period:
| Quarter | Period | Filing deadline |
|---|---|---|
| Q1 | January – March | 1-20 April |
| Q2 | April – June | 1-20 July |
| Q3 | July – September | 1-20 October |
| Q4 | October – December | 1-20 January (following year) |
Q1
January – March
1-20 April
Q2
April – June
1-20 July
Q3
July – September
1-20 October
Q4
October – December
1-20 January (following year)
Tourist rental licence requirements
If you rent your property short-term to tourists (Airbnb, Booking, etc.), most Spanish regions require a tourist rental licence (licencia de vivienda turística). Requirements vary dramatically by region — some regions (Catalonia, Balearics) have very restrictive regulations, while others (Andalucía, Murcia) are more permissive.
Operating without a licence can result in fines from €3,000 to €600,000 depending on the region. Always check local regulations before listing your property.
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Frequently asked questions
Do I need to register as a business to rent my property?
No. Individual non-resident owners file IRNR (Form 210) as individuals. You do not need to register as a business or get a Spanish VAT number for standard residential rentals. However, if you provide hotel-like services (cleaning, meals, reception), VAT may apply.
Can I avoid the 24% rate by setting up a Spanish company?
Technically, a Spanish company pays corporation tax at 25% instead of 24% IRNR, but can deduct all expenses. However, the administrative costs (accounting, annual filings, tax compliance) typically only make sense for portfolios of 3+ properties or high-value rentals.
What if I mix personal use and rental?
You must prorate. If you rent 6 months and use the property personally 6 months, you pay rental income tax on the rental months and imputed income tax (IRNR on non-rented property) on the personal-use months.
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About this content
Mortgage Content Editor
Published: July 2026
Last updated: July 2026
This page is informational and editorial in nature. It explains how the described mortgage conditions typically work and what to review, without guaranteeing results or replacing a lender’s assessment.