Rental Income Tax for Non-Residents in Spain 2026: IRNR, Form 210 & Deductions Guide
Complete guide for non-resident landlords in Spain and the Canary Islands: IRNR tax rates (19% EU/EEE vs 24% non-EU), Form 210 quarterly deadlines, deductible expenses, imputed rent for vacant properties, Brexit impact and tax treaty relief.
Abogado · Col. n.º 5.231 ICALPA · 8 min de lectura
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Rental Income Tax for Non-Residents in Spain 2026: Complete Guide
Thousands of foreign nationals own property on the Canary Islands and across Spain — renting it out seasonally, long-term, or leaving it vacant. In all these cases, Spanish law requires non-residents to file the Impuesto sobre la Renta de No Residentes (IRNR) and pay the applicable tax. This guide explains exactly how it works.
Who Is a "Non-Resident" for Spanish Tax Purposes?
You are a non-resident for Spanish tax purposes if:
- You spend fewer than 183 days per year in Spain, AND
- The main centre of your economic interests is not in Spain, AND
- Your spouse and/or dependent children do not reside habitually in Spain
Non-residents with income from Spanish sources (including rental income from Spanish property) must pay IRNR regardless of their nationality. The rules are the same whether you are British, German, French, Dutch, American or any other nationality.
IRNR Tax Rates for Rental Income (2026)
| Your tax residence | Rate | Tax base |
|---|---|---|
| EU or EEA (Germany, France, Netherlands, Italy, Austria, etc.) | 19% | Net income (after expenses) |
| UK (since Brexit 2021) | 19% | Gross income (no deductions) |
| USA, Canada, countries with tax treaty | Variable — generally 15-24% | Typically gross income |
| Countries without treaty | 24% | Gross income (no deductions) |
Case A: Property Is Rented Out
EU/EEA Landlords — 19% on Net Income
If you are resident in an EU or EEA country, you calculate IRNR on your net rental income:
Net income = Gross rental receipts − Allowable expenses
IRNR = Net income × 19%
Allowable expenses (proportional to the rented period only):
| Expense | Notes |
|---|---|
| Mortgage interest | Only interest on the loan used to acquire the property |
| Property depreciation | 3% of construction value or acquisition cost per year |
| Furniture & fittings depreciation | 10% per year of furniture value |
| Home insurance | Multi-risk, contents, liability |
| Community fees | Including IBI (local property tax) and rubbish collection |
| Repairs and maintenance | Upkeep only — not improvements or extensions |
| Property management fees | Estate agent commission, letting agent, administrator |
| Legal and professional costs | Related to the letting arrangement |
Important: you may only deduct the proportional share of expenses corresponding to the period the property was actually rented. If rented for 6 months, you can deduct 50% of annual fixed expenses.
Non-EU Landlords (including UK since Brexit) — 19-24% on Gross Income
IRNR = Gross rental income × 19% (or treaty rate)
No expenses may be deducted. The full gross rental amount received is taxable.
Case B: Property Is Vacant (Imputed Rental Income)
If you own a property in Spain but do not rent it out, you are still required to declare an imputed rental income:
| Cadastral value status | Annual imputed income |
|---|---|
| Revised within the last 10 years | 1.1% of cadastral value |
| NOT revised in the last 10 years | 2% of cadastral value |
| No cadastral value assigned | 1.1% of 50% of acquisition price |
IRNR = Imputed income × 19% (EU/EEA) or 24% (non-EU)
The vacant property declaration is filed annually (not quarterly), during the year following the period being declared.
Form 210: How and When to File
Filing Deadlines
| Rental period | Deadline |
|---|---|
| Q1: January–March | By 20 April |
| Q2: April–June | By 20 July |
| Q3: July–September | By 20 October |
| Q4: October–December | By 20 January (following year) |
| Vacant property (annual) | 1 January – 31 December (following year) |
How to File
Form 210 can be filed:
- Online at the AEAT electronic office (sede electrónica) — with a digital certificate (certificado digital) or Cl@ve PIN
- In person at an AEAT office in Spain (requires appointment — cita previa)
- Through a tax representative or lawyer (most common for non-residents)
Payment can be made by direct debit, bank transfer or at a collaborating financial institution.
Worked Example — German Owner, Canary Islands Property (2026)
Property details:
- Owner: resident in Germany (EU/EEA → 19% on net income)
- Apartment in Las Palmas de Gran Canaria
- Cadastral value: €80,000 (revised within last 10 years)
- Cadastral value of land: 40% = €32,000
Rental income (6 months of the year at €800/month):
- Gross income: €4,800
- Annual expenses: IBI €300 + community €600 + insurance €200 + depreciation €900 = €2,000
- Deductible expenses (50% of annual, proportional to 6 months rented): €1,000
- Net income: €4,800 − €1,000 = €3,800
- IRNR (19%): €3,800 × 19% = €722
Vacant period (6 months):
- Imputed income: €80,000 × 1.1% × 6/12 = €440
- IRNR (19%): €440 × 19% = €83.60
Total IRNR for the year: €722 + €83.60 = ~€806
Brexit — UK Owners Since 2021
Since 1 January 2021, UK nationals are classified as third-country (non-EU) residents for Spanish tax purposes. Key changes:
| Before Brexit | After Brexit (2021+) | |
|---|---|---|
| Tax rate | 19% | 19% (same rate — but...) |
| Tax base | Net income (after expenses) | Gross income (no deductions) |
| Wealth tax exemption | €700,000 personal allowance | Lower or no exemption |
Example: UK owner renting property at €800/month for 6 months:
- Before Brexit: 19% × (€4,800 − expenses) = potentially €600-700
- After Brexit: 19% × €4,800 gross = €912 (with no expense deductions)
Tax treaty relief: The Spain-UK Double Tax Convention (updated 2013) still applies. Income from Spanish property is taxed in Spain; the UK allows a credit against UK tax for the Spanish IRNR paid, preventing double taxation.
How Rental Income Is Treated in Your Home Country
| Country of residence | Treaty | Effect |
|---|---|---|
| Germany | ES-DE Convention | Property income taxed in Spain; Germany applies exemption with progression |
| France | ES-FR Convention | Property income taxed in Spain; France applies tax credit |
| Netherlands | ES-NL Convention | Property income taxed in Spain; NL applies credit/exemption |
| Italy | ES-IT Convention | Property income taxed in Spain; Italy applies tax credit |
| UK | ES-UK Convention | Property income taxed in Spain; UK applies tax credit |
| USA | ES-US Convention | Generally taxed in Spain; US allows foreign tax credit |
Penalties for Not Filing Form 210
The Spanish Tax Agency (AEAT) cross-references Land Registry and municipal records to identify non-resident owners who fail to file:
| Infraction | Penalty |
|---|---|
| Failure to file (with tax owed) | 50–150% of unpaid tax |
| Late filing without prior notice | 5–20% surcharge depending on delay |
| Late filing after AEAT demand | 50–150% surcharge + interest |
| Incorrect data declared | 50–150% of tax difference |
Voluntary regularisation before receiving an AEAT letter reduces penalties significantly (5% surcharge if filed within 3 months of the deadline).
Canary Islands vs. Mainland Spain
Non-residents owning property in the Canary Islands should be aware:
- IGIC (the Canarian equivalent of VAT at 7%) applies to short-term holiday rental contracts alongside IRNR — separate quarterly filings required
- Cadastral values in the Canary Islands tend to be lower than mainland Spain, reducing imputed rental income for vacant properties
- The Canary Islands have no inheritance tax for EU/EEA heirs (99.9% reduction), which affects estate planning for property owners
Do You Need a Fiscal Representative?
Non-EU non-residents who own property in Spain are legally required to appoint a fiscal representative resident in Spain (art. 47 LIRNR). EU/EEA residents are not formally required to do so, but practically speaking it is strongly recommended to have a Spanish tax lawyer or gestor handle Form 210 filings on your behalf.
How ALY Abogados Can Help
Our office in Las Palmas de Gran Canaria manages IRNR obligations for non-resident property owners across the Canary Islands:
- Quarterly Form 210 filings (rental income)
- Annual Form 210 (imputed rent — vacant property)
- Calculation of deductible expenses and tax optimisation
- Registration with the AEAT for non-resident owners
- Fiscal representation for non-EU owners
- Resolution of penalty proceedings for late or missed filings
We assist clients in English, German, French, Dutch and Spanish.
Free initial consultation. Call +34 633 572 607.
Lázaro Héctor Amable Méndez — Lawyer, Bar No. 5.231 ICALPA
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