What's new in the income tax return for non-residents

Keeping your tax obligations up to date with the Spanish Tax Agency is a critical factor for any foreign property owner in Spain. The lack of permanent residence often creates the false belief that there are no tax responsibilities, but the reality is that simply owning a property on Spanish territory triggers a series of obligations that, if not met, can lead to significant financial penalties and late-payment surcharges.

What is the Non-Resident Income Tax (IRNR)?

The IRNR is a direct tax levied on income obtained in Spanish territory by individuals and entities that do not reside in Spain. If you spend fewer than 183 days a year in the country and your main economic interests are not here, you are considered a non-resident. However, if you own an apartment, villa or premises, the law assumes that you obtain a benefit from it, whether real (rental) or estimated (personal use).

"Imputed income": the great unknown of Form 210

Many foreign owners are unaware that they must declare the "imputed income" on their empty or personal-use properties through Form 210.

Even if the property is not rented out and you only use it during your holidays, the Spanish tax authorities consider that you have an "enrichment" from having that asset available. This income is calculated by applying a percentage (generally 1.1% or 2%) to the property's cadastral value shown on your IBI receipt.

When must it be filed?

Unlike the ordinary income tax return, the deadline for the imputed income of non-residents is usually throughout the calendar year following the accrual year. In other words, throughout 2026 you will be declaring the 2025 tax year.

What happens if you decide to rent out your property?

If you decide to make your investment profitable through rental (whether long-term or holiday), the taxation changes:

1. Quarterly return: Rental income must be declared quarterly (in April, July, October and January).
2. Deductible expenses: If you are a resident of a European Union country, Iceland or Norway, you are entitled to deduct expenses necessary for the upkeep of the property (IBI, community fees, repairs, insurance, utilities…). This significantly reduces the taxable base.
3. Tax rate: Currently, the general rate is 19% for EU/EEA residents and 24% for the rest of the world.

Recent changes and the digitalisation of the Tax Agency

The Spanish Tax Agency has stepped up its monitoring of non-residents' properties by cross-checking data with electricity supply companies and holiday rental platforms. This means that the tax authorities now have an unprecedented ability to detect when a property is being used or rented out without being declared.

In addition, the regulations on electronic notifications have evolved. It is essential to have a tax representative in Spain who manages your electronic mailbox, as in many cases the tax authorities no longer send physical letters to your country of origin. If you do not respond to a digital request that you did not see, the penalty will still proceed.