Spain continues to be one of the most popular destinations in Europe for international residents, digital nomads, retirees, and second-home buyers. But while the lifestyle is undoubtedly attractive, understanding your tax obligations as a foreigner is crucial to avoid legal and financial problems.
In this guide, we explain what taxes foreigners must pay in Spain, how they differ between residents and non-residents, and the key deadlines to keep in mind—especially the December 31st deadline for Modelo 210.
Are You a Resident or a Non-Resident for Tax Purposes?
Before you can determine what taxes apply to you, you need to understand how Spanish tax residency works.
You are considered a tax resident in Spain if:
- You spend more than 183 days in the country during the calendar year.
- Or your main economic interests, such as your business or primary residence, are located in Spain.
If neither of these applies, and you simply own property or receive income from Spanish sources while living abroad, you are classified as a non-resident. This status limits your tax obligations to Spanish-based income and assets—but those taxes still must be declared and paid.
Non-Resident Taxes in Spain: What You Need to Know
If you own property in Spain but are not a resident, you are subject to a number of taxes—even if your property is not generating income.
1. Non-Resident Income Tax (Modelo 210)
This is the most common tax obligation for foreign homeowners in Spain. All non-residents who own property must submit Modelo 210, the Spanish non-resident income tax form.
If your property is not rented, the tax is applied to a theoretical income called “imputed rental income”—a percentage of the cadastral value of your home, set by the Spanish government.
If your property is rented, then the tax is applied to your actual rental income.
The tax rate in 2025 is:
- 19% for residents of EU and EEA countries.
- 24% for residents of non-EU/EEA countries.
Even if you don’t rent out your home, this tax must be paid annually.
- Deadline if not rented: December 31, 2025
- If rented: the tax is filed quarterly throughout the year
2. Rental Income Tax
If you’re renting out your Spanish property, you must declare your earnings quarterly using the same Modelo 210 form.
EU/EEA residents can deduct certain expenses such as repairs, insurance, and mortgage interest. Non-EU residents, however, are not allowed to apply deductions and must pay tax on gross rental income.
Filing must be done four times per year, typically in April, July, October, and January.
3. Capital Gains Tax
If you sell your Spanish property, you will likely owe capital gains tax on the profit made from the sale.
The applicable rate is 19% for EU/EEA residents. Additionally, 3% of the sale price is automatically withheld by the buyer and paid directly to the Spanish tax authorities. This is an advance payment on your capital gains tax and may be refunded in part if overpaid.
It’s important to report this promptly to ensure compliance and to claim any refund if applicable.
4. Annual Property Tax (IBI)
The IBI (Impuesto sobre Bienes Inmuebles) is an annual municipal tax that all property owners must pay, regardless of residency status.
This tax is calculated based on the cadastral value of the property, and the exact amount depends on the location and regulations of the local council (ayuntamiento).
The IBI notice is typically issued in the second half of the year, and payment is due in the last quarter, although deadlines vary by region.
5. Wealth Tax
Spain’s wealth tax applies if your assets in Spain exceed a certain threshold. As a non-resident, only your Spanish-based assets are subject to this tax.
In most regions, the minimum threshold is €700,000, and tax rates range from 0.2% to 2.5% depending on the value of your assets. Autonomous regions can increase the rates or lower the threshold, so regional advice is key.
If you own high-value property in Spain or multiple assets (e.g., investment portfolios, vehicles), it’s worth getting professional tax advice to assess if wealth tax applies to you.
6. Inheritance and Gift Tax
This tax is paid by the person who receives the inheritance or donation, not the estate or the donor. For non-residents, it applies to assets located in Spain, such as real estate or bank accounts.
Spanish inheritance tax is managed at the regional level, so rates and exemptions vary. Spouses and children may benefit from significant deductions, but it’s important to act quickly.
You have six months from the date of death or donation to pay this tax, with possible extensions if requested.
Don’t Miss the December 31 Deadline
If you are a non-resident with property in Spain, and you did not rent out the property during 2025, you still have to submit Modelo 210 before December 31, 2025.
This tax is calculated based on imputed income, not actual rental earnings. Many foreign homeowners are surprised by this rule—but failing to comply can lead to fines, interest charges, or even legal action.
Late filings may also complicate future property sales or inheritance processes.
Avoiding Common Tax Mistakes
Here are the most frequent errors we see among international clients:
- Thinking that no rental = no tax
- Forgetting to file Modelo 210 each year
- Not appointing a fiscal representative in Spain
- Not knowing about wealth tax thresholds
- Assuming regional tax rules are the same nationwide
A reliable legal and tax team can help you avoid these costly missteps.
How Fuster & Associates Can Help
With over 25 years of experience in non-resident taxation, property law, and expat services, we help clients from all over the world stay compliant with Spanish regulations.
Our team can assist with:
- Annual or quarterly Modelo 210 filings
- Rental income reporting
- Capital gains declarations and refunds
- Wealth tax assessments
- Inheritance and donation tax planning
We offer personalised tax roadmaps for non-residents and future residents to ensure peace of mind and legal security.
Owning a property in Spain or receiving income here means you have tax obligations—even if you live abroad. Knowing what taxes apply and when to pay them is essential to avoid penalties and stay compliant.
If you haven’t yet filed your Modelo 210 for 2025, now is the time to act. The deadline is December 31, 2025.
Contact Fuster & Associates today for expert guidance tailored to your situation.
We want to help you navigate all the legal complexities that come to buying or selling a house in Spain, but this article is legal information and should not be seen as legal advice.
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