Buying a home in Spain is a dream move for many – whether it’s a holiday getaway, a future retirement plan, or simply a great investment. But for non-residents, owning property here also means getting to grips with a few important tax responsibilities.
The upside? With the right approach, you can legally reduce your tax burden and avoid paying more than you need to. From understanding how Spain’s tax system works to claiming the deductions you’re entitled to, there are several ways to keep more money in your pocket, without cutting corners or risking penalties.
In this guide, we’ll break down exactly how non-resident property owners can save on taxes, stay compliant, and make sure their Spanish property investment continues to work in their favour.
Understanding Your Non-Resident Tax Obligations
As a non-resident in Spain (meaning you spend fewer than 183 days in the country per year), there are three main types of taxes you may need to pay:
1. Imputed Income Tax
If you own a property in Spain but don’t rent it out, you still need to pay an annual tax on the property’s ‘theoretical rental value’. This is known as imputed income tax and is calculated as a small percentage of the property’s cadastral value (valor catastral), which can be found on your local IBI tax bill.
- Tax rate: 19% for EU/EEA residents, 24% for non-EU residents
- Filed using: Modelo 210 form
- Deadline: 31 December of the following year (e.g., 2024 return due by 31 December 2025)
2. Rental Income Tax
If you rent out your property, even for just a few weeks, you must declare this income and pay tax accordingly.
- Tax rate: 19% on net income for EU/EEA residents (after deductions), 24% on gross income for non-EU/EEA residents
- Filed using: Modelo 210 form
- Deadline: Annually, the filing period is open from 1-20 January for the previous year’s rental income
3. Capital Gains Tax
When you sell a property in Spain, you’re liable for capital gains tax on any profit made on the sale.
- Tax rate: 19% for EU and non-EU residents
- Withholding: 3% of the sale price is automatically retained by the buyer and paid to the tax office as a pre-payment
- Filed using: Modelo 210 form
- Deadline: Within 4 months of the sale date
Top Ways to Reduce Your Tax Bill Legally
1. Take Advantage of Allowable Deductions
If you’re an EU/EEA resident (or from a country with a tax treaty, such as Norway or Iceland), you’re entitled to deduct certain expenses from your rental income. These can include:
- Mortgage interest
- Property management fees
- Maintenance and repairs
- Insurance
- IBI and local taxes
- Utilities (if you pay them as the landlord)
To qualify, you must provide a tax residency certificate from your home country and keep accurate receipts for each expense.
2. Don’t Miss Deadlines
One of the most common (and costly) mistakes non-residents make is missing tax deadlines. Penalties can start at 1% per month and increase rapidly, especially if the Spanish tax office initiates the claim.
To keep on top of the deadlines, we recommend registering for IberianTax’s free tax reminders. You’ll receive prompt reminders when a deadline is approaching, leaving you with plenty of time to get prepared.
3. File Early with IberianTax
Did you know that you don’t have to wait until the deadline to file your Imputed Income tax? By using an online tax filing service like IberianTax, you can file right now, ahead of the December 2025 deadline, leaving you free to enjoy the rest of the year. Filing early can help you better manage cash flow, reduce stress during peak tax season, and avoid the risk of missing the deadline altogether.
Filing early gives you peace of mind, helps you avoid last-minute mistakes, and prevents costly interest or enforcement action from the tax office.
Commonly Asked Questions
1. Do I still need to file taxes if I don’t rent out my property?
Yes. Even if you don’t rent out your property and only use it for private holidays or leave it empty for most of the year, you are still legally required to file a Modelo 210 for Imputed Income Tax each year.
It’s based on the property’s cadastral value, not on actual rental income. Many non-resident homeowners assume that if they haven’t rented their property out, they don’t owe taxes, but this is one of the most common misconceptions. Failing to file this tax can lead to problems down the line, especially when trying to sell or transfer the property, as unpaid taxes can surface during legal checks.
2. What happens if I miss the deadline to file?
Initially, the Spanish tax authorities (Agencia Tributaria) may apply a surcharge of 1% for each full month of delay, up to 12 months. After that, additional interest may be added, and in some cases, penalties of 50% or more of the unpaid tax could be imposed, especially if the tax office initiates the demand rather than you filing voluntarily.
Voluntary late filing is usually treated more leniently and can result in lower penalties than if the authorities discover the omission during an audit or compliance check.
3. If we are joint owners, can we file together?
Each property owner must file their own individual Modelo 210 form, even if they jointly own the property. Spanish tax law treats each owner’s share as a separate taxable obligation, so the tax return must reflect each person’s portion of the property ownership.
However, IberianTax makes this easy with the option to manage up to 4 different owners in one account. This means you can complete all the necessary steps for each co-owner in one place, using the same login, without juggling multiple forms, accounts or emails. It’s efficient, clear, and saves you the hassle of coordinating with multiple advisors or filing separately on paper.
4. How much does to cost to file with IberianTax?
IberianTax’s services starts at €34.95 per person for Imputed Income tax, including VAT. There are no hidden fees, and the price includes everything – from calculation to submission to the Spanish tax authorities.
5. Is IberianTax officially recognised by the Spanish tax office?
Yes. IberianTax is an authorised collaborator of the Agencia Tributaria (Spanish tax authorities). That means they are fully approved to submit tax returns on behalf of non-resident property owners in Spain. Their service is fully accurate and secure, using data encryption to ensure the highest level of security.
How IberianTax Can Help You Save Money
IberianTax is a fully digital platform designed specifically for non-resident property owners, with a mission to make Spanish tax filing simple, accurate and cost-effective – so you can save time, reduce stress, and avoid overpaying.
Here’s how IberianTax help you maximise your savings:
- Low-cost filing from €34.95 (VAT included) – much cheaper than using a local accountant or gestoría.
- Simple, guided online form – complete your Modelo 210 in minutes, even with no tax experience.
- Free tax calculator – see your exact tax liability before paying anything.
- Multilingual support – available in English, German, French and Spanish.
- Automatic deadline reminders – never miss another filing.
- Secure payment and submission – authorised by the Spanish tax agency (Agencia Tributaria).
Filing with IberianTax is straightforward. First, you create a free account and complete a simple questionnaire about your property. Next, the software automatically calculates your tax liability. You choose your payment method, and IberianTax take care of the rest – securely submitting your Modelo 210 to the Agencia Tributaria. You’ll then receive official confirmation of submission by email, giving you complete peace of mind.
Case Study: How Much Can You Save?
One of the biggest advantages of filing with IberianTax is the cost savings, especially when compared to traditional accountants or local gestorías in Spain.
Many non-resident property owners are still paying €150–€300 per year, per person, just to file a simple Modelo 210 tax return. And that’s without factoring in additional time and stress with in-person meetings or last-minute deadlines.
Let’s break it down:
Average costs with a traditional accountant:
- €200 per owner, per year
- For a jointly owned property: €400 annually
- Over 5 years: €2,000
With IberianTax:
- €59.95 per couple, per year
- Over 5 years: €299.75
That’s a potential saving of just over €1,700, just for filing the same declaration! And with automated reminders, multilingual support, and a step-by-step online system, there’s no paperwork, confusion, or need to chase up an accountant ever again.
Save More by Filing Smarter
Non-resident taxes in Spain don’t have to be confusing or expensive. By understanding your obligations, claiming eligible deductions, and filing on time, you can avoid penalties and reduce your tax bill significantly. And with IberianTax, the process couldn’t be simpler – or more affordable.
Are you ready to file your non-resident taxes the easy way? Create your FREE IberianTax account today and receive important reminders of your non-resident taxes.
Whether you’re filing imputed income tax, rental income tax or capital gains, IberianTax are here to help you do it right, without the stress.
This is a Spotlight Feature in collaboration with IberianTax.
ALSO READ: Spotlight: Own property in Spain but don’t live there all year round? Here’s what to know in 2025.
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