Non-Resident Tax on Rental Income: Rates and Deductions

A non-resident pays tax on rental income from Spanish property at 19% if resident in another EU or EEA state, and at 24% if resident in any other country. In the first case the tax is calculated on income less expenses, in the second on gross rent. The tax is called IRNR (Impuesto sobre la Renta de no Residentes, non-resident income tax) and is declared on Modelo 210. Below are the rates, deductions and deadlines as of 12 October 2026, and a court dispute that may change the rule for third countries.

Which rate applies and what can be deducted

The general IRNR rate is 24%, but 19% applies to residents of the EU and EEA with which an effective exchange of tax information operates (art. 25.1.a TRLIRNR). For everyone else the base is set on gross income, with no deductions and none of the IRPF (personal income tax) reductions (art. 24.1). Residents of the EU and EEA with which there is an exchange of tax information may deduct expenses under the IRPF rules, if they are directly linked to Spanish income and have a "direct and inseparable" link with the activity in Spain (art. 24.6).

The reduction of the base for a landlord resident in Spain (art. 23.2 LIRPF) is not available to a non-resident. Under the wording before 8 October 2026 it was 50% in the general case and up to 90% in some; Real Decreto-ley 29/2026 changes the scale from 8 October to 15–100% depending on the change in rent and the landlord's status, but as of 12 October Congress has not validated it. So you cannot compare your 19% directly with the tax of a resident landlord: the resident's base after the reduction is usually noticeably smaller.

Which expenses EU and EEA residents deduct

Under art. 23 LIRPF, which art. 24.6 refers to, these are interest on a loan for the purchase, repair and upkeep costs, local taxes including IBI (annual property tax), insurance, comunidad (owners' association) costs and depreciation. For a building, depreciation of up to 3% a year is allowed, calculated on the greater of acquisition cost or cadastral value, excluding the land (art. 23.1.b LIRPF). Expenses must be backed by invoices. If the home is not let all year, only expenses for the rental period count; checking this is on you and your asesor fiscal (tax adviser).

A worked calculation on one apartment

A worked example, not a forecast. Rent is €2,500 a month, €30,000 for the year. Expenses: IBI €1,500, comunidad €1,800, insurance €400, repairs €1,000, interest €3,000 (assumption). The building excluding land is valued at €280,000, so 3% depreciation is €8,400.

The difference is almost threefold for the same rent. With lower expenses it narrows.

The dispute over deductions for third countries

On 28 July 2025 the Audiencia Nacional (Spain's national high court) (ECLI:ES:AN:2025:3630) recognised the right of a US taxpayer to deduct expenses, noting that refusing third countries restricts the free movement of capital (art. 63 TFEU). On 15 July 2026 the Tribunal Supremo (Supreme Court) admitted the cassation appeal and will decide whether this restriction is protected by the standstill clause in art. 64.1 TFEU, since Spanish law did not allow non-residents to deduct expenses even before 1994 (Ley 18/1991) (Cuatrecasas analysis). There is no final ruling. The text of the law as of 6 October 2026 is unchanged, so residents of third countries by default calculate on gross income. Whether to apply for a review of past returns is a question for the asesor fiscal: the limitation period for the tax is four years.

How and when to file Modelo 210

The procedure changes from 2026. Under Orden HAC/623/2026 of 12 June, rental income of 2026 and later is filed in one consolidated return from 1 to 20 April of the following year. Before that, for rent of 2024 and 2025, the deadline was 1 to 20 January. If you file each income item separately, income up to September 2026 follows the old deadlines (the first 20 days of the month after the quarter), and income from October 2026 onward follows the new ones (AEAT, filing deadline and AEAT, changes under Orden HAC/623/2026). The form gains an expenses annex, a field for the number of rental days and the ownership share.

If the tenant is a company or a self-employed business, it must withhold tax from the rent at the same 19% or 24% and file its own return (art. 31 TRLIRNR). Withholding is calculated without deductions, so an EU resident with expenses may overpay and then claim a refund. A private individual as tenant withholds nothing.

Who this calculation is not for

If your country has a double taxation treaty with Spain, the tax in Spain may be credited at home, and the final burden is calculated differently (article on treaties). The calculation also does not apply to a property held in an SL (Spanish limited company): there corporate income tax applies, not IRNR. If the flat stands empty, a separate tax on imputed income applies, described in the article on Modelo 210.

Questions for the asesor fiscal: what status do I fall under, which expenses are directly linked to Spanish income, how to account for rent that does not cover the whole year, and how to credit the tax at home. The real yield of rent after tax can be estimated in the calculator, and typical rent levels in the city are covered in the article on realistic yield.