Non-resident tax in Spain – what you need to know in 2026

Owning property in Spain is still something many UK buyers are doing, whether for holidays, rental income, or longer-term plans. It’s fairly straightforward on the surface, though the tax side of things isn’t always as obvious.

A common assumption is that if you’re not living in Spain or renting the property out, there’s nothing to deal with. In reality, Spain still expects non-resident owners to declare something each year. The rules themselves haven’t changed massively, though the way they’re enforced has become more consistent, which is where people tend to get caught out.

If you own property in Spain but live elsewhere or you’re planning to, this is how it works in 2026.

You may still pay tax even if the property isn’t rented

One of the more unusual aspects of the Spanish system is that tax can apply even when the property isn’t generating any income. This tends to catch people off guard, especially those who use their property for only a few weeks a year and assume there’s nothing to declare.

Instead of looking at actual income, the tax office applies what’s known as imputed income. It’s essentially a theoretical figure, based on the idea that the property has a value and could generate income, even if it doesn’t in practice. That figure is calculated using the cadastral value, set by the local authority and usually lower than the market value.

In most cases, the calculation works like this:

• 1.1% of the cadastral value (if it’s been updated in recent years)
• 2% if it hasn’t

Once that base figure is determined, tax is applied to it rather than to any actual income.

The rates are currently:

• 19% for UK and EU/EEA residents
• 24% for non-EU residents outside this group

It’s usually a relatively small amount, though it still needs to be declared each year. Each owner is responsible for their own share, so if the property is jointly owned, you’ll both need to file separately rather than submitting a single return.

Renting the property brings a different setup

If you decide to rent the property out, the approach changes quite a bit. Instead of a notional figure, everything is based on the income you actually receive, which tends to feel more straightforward at first glance.

For UK residents, the tax rate is generally 19%, though the key difference is that you can reduce the taxable amount by offsetting certain expenses. These are the usual running costs that come with owning and managing a property, such as upkeep, insurance, and agency fees. Non-EU residents are usually taxed on the full amount without these deductions, which can make a noticeable difference overall.

Rather than being handled in one go at the end of the year, rental income is reported in stages. This is where people often need to adjust their expectations slightly, as it involves multiple filings:

• January
• April
• July
• October

Each return covers the income received during the previous quarter. Even if the rental activity is fairly light, the reporting still follows this schedule, so it’s something that needs to be kept in mind from the start.

Filing is all done through Modelo 210

Whether the property is rented or not, everything is handled through the same form: Modelo 210. This is the standard tax return used for non-residents in Spain, and it’s what ties all of these obligations together.

As we mentioned earlier, the timing depends on how the property is used. If the property is rented, it becomes more regular. Instead of one annual submission, you’ll be filing quarterly returns to report the income as it comes in. Each submission only covers a specific period, which is why they’re spread across the year.

It’s quite easy for this to slip under the radar, especially if the property isn’t used consistently or rental income is occasional. In recent years, Spanish authorities have taken a more structured approach to enforcement, with late filings more likely to result in penalties than they might have done in the past. It’s important to keep track of dates and make sure everything is submitted on time.

Selling the property adds another layer

If you sell your Spanish property, the focus shifts to Capital Gains Tax, which is based on the difference between what you paid for the property and what you sell it for. For UK residents, the rate usually starts at 19%, though the final amount depends on the overall gain once costs and allowances are taken into account. It’s not just the sale price that matters, but also things like purchase costs and certain improvements made over time.

One part of the process that often catches people off guard is the retention rule. When the sale goes through, the buyer must hold back 3% of the purchase price and pay it directly to the Spanish tax office on your behalf.

That amount isn’t your final tax bill. It acts more like a deposit against what you may owe. Once your full tax position is calculated, you either pay any difference or claim a refund if too much was withheld. It’s a standard part of the process, though it can come as a surprise if you’re not expecting it.

Wealth tax can apply in some cases

This doesn’t apply to every property owner, though it’s something that tends to come up with higher-value assets. Spain applies Wealth Tax based on the total value of assets held in the country, rather than just income.

As a general guide, it starts to become relevant once net assets exceed around €700,000 per person, after certain allowances are taken into account. Property is included in that calculation, along with other Spanish-based assets.

What makes this slightly less clear is that the rules can vary by region. Some areas apply the tax more strictly, while others offer more generous allowances or reliefs. That’s why two properties of a similar value can sometimes be treated differently depending on where they’re located.

What this looks like in practice

For most UK property owners, the overall structure is still fairly consistent. The 19% rate applies in many situations, and the agreement between the UK and Spain helps avoid being taxed twice on the same income.

What tends to trip people up isn’t the tax itself, but the admin around it. There are different timelines depending on how the property is used, and those deadlines are now taken more seriously than they might have been a few years ago.

Once everything is set up properly, it’s fairly routine. You just need a clear understanding of what applies to your situation and to make sure it’s handled at the right time, rather than trying to piece it together later on. If you’re unsure how to proceed, that’s something our team can assist you with.

If you need guidance in navigating the Spanish property market, our English-speaking solicitors are here to help. To speak to a member of our team, you can reach out through the form on our website, email us at info@gbabogados.co.uk, message us on WhatsApp, or give our team a call on +44 (0)20 3137 1320. We’re here to help you.