Legal & Tax · 12 min read

Spain Non-Resident Property Tax (IRNR): The Complete Guide for Foreign Owners in 2026

10 June 2026 · Hansson & Hertzell

Every non-resident who owns property in Spain pays annual income tax — even if the property sits empty all year. Here's exactly what you owe, how it's calculated, what you can deduct, and when to file.

The purchase is complete. Keys handed over. You're a Costa Blanca property owner. The purchase taxes (IVA, stamp duty, notary) are paid. You assume the ongoing tax obligations are just the local municipal ones — IBI, community fees.

Then, the following January, your Spanish asesor fiscal (tax advisor) sends you a filing reminder for your Modelo 210. Spain's IRNR — Impuesto sobre la Renta de No Residentes — is an annual income tax on non-resident property owners that applies regardless of whether you rent the property or not.

Here is exactly how it works.

IRNR on Unrented Property: Deemed Income

If you own a property in Spain and don't rent it (holiday home, investment held vacant, or property used personally for holidays), Spain deems you to have received an imputed income from it.

How it's calculated:

• Deemed income = 1.1% × catastral value (if catastral value has been revised since 1994)
• OR: 2% × catastral value (if catastral value has not been revised since 1994)
• Most Costa Blanca new build properties use the 1.1% rate

Tax rate applied to the deemed income:

• EU/EEA residents (including most Nordic and Belgian buyers): 19%
• Non-EU/EEA residents (including UK citizens post-Brexit): 24%

Example — Costa Blanca 2-bed new build, catastral value €80,000:

• Deemed income: €80,000 × 1.1% = €880
• Tax (UK owner at 24%): €880 × 24% = €211/year
• Tax (EU owner at 19%): €880 × 19% = €167/year

This is typically €100–300/year for most Costa Blanca apartments — a modest amount, but it must be filed and paid annually.

When to file: Modelo 210 for the deemed income year must be filed between 1 January and 31 December of the following year. So for 2025 income, file in 2026.

IRNR on Tourist Rental Income

If you let the property on tourist rentals (Airbnb, Booking.com, specialist agencies), the actual rental income is subject to IRNR:

EU/EEA residents: Can deduct allowable expenses (management fees, cleaning, platform fees, maintenance, depreciation, mortgage interest, community fees, IBI, insurance) from gross rental income. Tax paid on net profit at 19%.

Non-EU residents (UK post-Brexit): Much less favourable. UK owners pay 19% on gross rental income with very limited deductions permitted. The UK–Spain Double Tax Treaty provides relief against UK tax on the same income, but the Spanish gross-basis calculation means UK owners pay more than EU residents in absolute terms.

Example — UK owner, 8 weeks tourist rental, €8,000 gross income:

• Deductible expenses (limited for UK owners): ~€800
• Taxable: effectively the gross (~€8,000)
• IRNR at 19%: ~€1,520/year
• EU owner on same income (after full expense deductions): likely €400–700

Quarterly filing: Rental income IRNR is filed quarterly (Modelo 210 quarterly). Each quarter's rental income must be declared and paid within 20 days of the quarter end.

IRNR on Long-Term Residential Rental

Long-term residential lets (12+ month contracts, not tourist rental) follow similar rules:

EU/EEA owners: 19% on net income after allowable deductions. Can also benefit from a 60% reduction on the taxable rental income if the property qualifies as the tenant's habitual residence — reducing effective tax rate significantly.

UK owners: 19% on gross income with limited deductions. The 60% reduction does not apply to non-EU owners. This makes long-term residential letting less tax-efficient for UK owners than tourist rental, where at least the effective gross income is seasonal.

Capital Gains (Plusvalía del Estado) on Sale

When you eventually sell, non-residents pay IRNR at 19% on the capital gain (sales price minus acquisition cost, adjusted for allowable costs):

• Allowable deductions from capital gain: purchase price, buying costs (IVA, notary, legal fees), any capital improvement costs with receipts, selling costs (agency, legal)
• The gain is the net after these deductions
• Tax: 19% for all non-residents (both EU and non-EU)

Retention at source: The Spanish buyer is required to withhold 3% of the purchase price at completion and pay it to AEAT on your behalf as an advance against your capital gains liability. You reclaim the excess (or pay the shortfall) via Modelo 210 within 4 months of the sale.

Practical Compliance Checklist

• Obtain a NIE before purchase (required for all tax filings)
• Open a Spanish bank account for AEAT direct debits and refund receipt
• Register with AEAT as a non-resident taxpayer
• Engage an asesor fiscal for annual Modelo 210 filing — cost: €100–200/year for the unrented property return; more for rental income returns
• Keep all receipts for improvement works — these reduce your eventual capital gains liability
• File on time — late filing penalties start at 5% of the tax due, rising to 20% after 12 months