Owning a holiday home on the Costa del Sol or in central Madrid is a dream for many — but it comes with a tax obligation that catches foreign owners by surprise. Even if you never rent the property out and never set foot in Spain during the year, you generally owe Spain's non-resident tax on a notional imputed income from the property.
What Is the IRNR?
The Impuesto sobre la Renta de no Residentes (IRNR) is the income tax that Spain levities on individuals who are not Spanish tax residents but receive income that is Spanish-source. For property owners, the most common application is the imputación de rentas inmobiliarias — a notional annual income that Spain assumes you earn simply by owning a property that is not your main residence.
The calculation is straightforward. The tax base is a percentage of the property's valor catastral (cadastral value, found on your IBI bill). For properties whose valor catastral was last revised after 1994, the rate is 2%; for older valuations it is 1.1%. This notional income is then taxed at a flat 19% for EU/EEA residents, or 24% for non-EU residents.
When and How to File
The IRNR for imputed income is filed annually using Modelo 210, and it must be filed by 31 December of the year following the tax year (so the 2025 liability is filed by 31 December 2026). Unlike resident income tax, there is no automatic extension to June — the deadline is the end of the calendar year. Each property is declared separately, and you need a Spanish NIE to file.
If you do rent the property out, the rules change: rental income is taxed as actual income (still under Modelo 210 but with quarterly filing for EU residents) at 19% or 24%, and the imputed income no longer applies for the periods it is rented. Expenses are deductible for EU residents; for non-EU residents deductibility is more limited.
Penalties and Common Mistakes
The most common mistake is simply not filing — many owners assume no rental income means no tax. Hacienda is increasingly cross-referencing the land registry (catastro) with tax records and pursuing non-filers. Late filing triggers surcharges starting at 1% per month, plus interest. Another common error is using the wrong cadastral value or missing the December deadline by treating it like the June resident deadline.
How a Gestor Can Help
This is classic gestor territory. For a modest annual fee, a gestor will: confirm your correct cadastral value and tax base, calculate the exact liability for each property, prepare and file Modelo 210 before the deadline, set up the payment to Hacienda, and keep records so you can demonstrate compliance. For owners with multiple properties or who also rent occasionally, the gestor becomes indispensable. Find a non-resident tax specialist at findgestor.com.