The tax that applies to you: the IRNR
If you're not a tax resident in Spain but your property is here, your rental income is taxed in Spain under the IRNR (Spain's non-resident income tax). The key rule depends on where you live — not where the property is:
If you're resident in the European Union, Norway or Iceland, you pay 19% on the net income — meaning you can deduct expenses in proportion to the days let: cleaning, utilities, IBI (council property tax), insurance, portal and management commissions, depreciation, repairs. If you're resident outside the EU and the EEA — for example in the United Kingdom since Brexit — the rate is 24% on gross income, with no expense deductions at all. The difference is enormous, and it's worth being clear about it before running any numbers.
The Modelo 210 and when to file it
IRNR on rental income is declared using the Modelo 210 (the Spanish non-resident tax form). Since 2024, rental income can be declared in a single grouped annual return (in January of the following year) instead of quarter by quarter as before — a significant administrative relief if you have lots of short stays.
Watch out for a detail that surprises almost every foreign owner: the periods when the property sits empty are taxed too, through what's known as imputed income (imputación de rentas) — a small percentage of the property's cadastral value, prorated over the unlet days, also declared on the Modelo 210. Empty does not mean tax-free.
The tax office already knows what you earn: DAC7
Since the EU's DAC7 rules came into force, Airbnb, Booking and the other platforms report each host's income to the European tax authorities, identified by tax ID. In parallel, intermediaries in Spain file their own information returns on holiday rental lettings.
The practical upshot is simple: the days when holiday rental income "couldn't be seen" are over. Declaring properly from the very first euro isn't just the right thing to do — it's the only sensible thing, because the data-matching is automatic.
How we make it easy for you
We're not tax advisers, and this guide is general guidance, not advice — every case has nuances (double taxation treaties, joint ownership, VAT if hotel-style services are provided) that deserve a professional. What we do provide for our owners:
- Clear monthly statements with all the property's income and expenses, ready to hand straight to your adviser.
- All the deductible-expense paperwork in order: invoices for cleaning, utilities, commissions and repairs.
- You get paid into your bank account in your own country — no Spanish account needed.
- If you don't have a tax adviser in Spain, we'll put you in touch with professionals specialising in non-residents whom our owners already work with.