How do I calculate tax on my Spanish rental income?

Take the gross rent received for the period, subtract the allowable expenses you qualify for (apportioned to the days the property was rented), then apply your flat rate: 19% for EU/EEA residents on net income, or 24% for non-EEA residents. The result is the tax due on the Modelo 210.

Do I calculate Spanish rental tax per quarter or per year?

Since the 2024 tax year non-residents file Modelo 210 annually - once a year, by 20 January following the tax year for 2024 and 2025 income and between 1 and 20 April from the 2026 tax year under Orden HAC/623/2026 - so the tax is calculated across the full calendar year's rent and expenses.

What construction value do I use for depreciation?

Depreciation is commonly around 3% of the construction value of the building, not the land value. The construction value can be taken from the IBI/cadastral breakdown or the purchase deed apportionment.

Is my Spanish rental income also taxed in my home country?

It may be, but double-tax treaties normally let you credit the Spanish tax paid against your home-country liability, so the same income is not taxed twice. Check your country's treaty with Spain.

Do I still pay Spanish tax when the rental property is empty?

Yes. For periods the property is not rented and is at your disposal, non-residents owe imputed income tax of 1.1% of the cadastral value (2% if not revised in ten years), taxed at your rate on an annual Modelo 210.

How to Calculate Tax on Your Spanish Rental Income: A Step-b

Q: Why does a non-EU landlord pay more tax on the same rent in Spain?

Under the statutory rule, non-EEA residents are taxed on gross rent with no deductions, while EU/EEA residents are taxed on net income after expenses. On a typical let this can mean roughly four times the tax. Although the Spanish Non-Resident Income Tax Act currently restricts the deduction of rental expenses to residents of the EU/EEA, the Spanish National Court (Audiencia Nacional) ruled on 28 July 2025 that this restriction is contrary to the principle of free movement of capital and may also infringe applicable double taxation treaties. As a result, non-EU residents may have grounds to claim a refund of tax previously paid on gross rental income by requesting a rectification of their Form 210 tax returns. This area of law is currently evolving and specialist advice should be obtained.

Editorial transparency and use of artificial intelligence

This article forms part of the CostaLuz Lawyers blog and is published for general informational and educational purposes only. It was prepared with the assistance of artificial intelligence tools and, before publication, was substantively reviewed and editorially approved by Maria de Castro, a Spanish-qualified lawyer registered with the Cádiz Bar Association under number 2745, founder of CostaLuz Lawyers and the person responsible for the editorial review of the published content.

This article does not constitute legal, tax, immigration, employment, estate-planning or investment advice and does not replace an individual assessment and the professional work of the appropriate CostaLuz Lawyers specialist. No action or omission should be based solely on this information.

Note: This article reflects 2026 rules and is undergoing final review by María Luisa de Castro (ICA Cádiz nº 2745). Specific figures and thresholds should be confirmed for your case — book a consultation or email marialuisa@costaluzlawyers.es.

Working out the tax on a Spanish rental is simpler than it looks once you take it in order: gross rent, minus allowable expenses, times your rate. The figure that trips people up is not the rate — it is the deductions, and whether they apply to you at all. This guide walks through the calculation step by step and finishes with a worked example for an EU and a non-EU landlord, so you can see exactly how the same property produces two very different bills.

Step 1 — Add Up the Gross Rent for the Period

Start with the rent you actually received in the period you are declaring. Because non-residents now file Modelo 210 annually (once a year: within the first 20 days of January for 2024 and 2025 income, and 1-20 April of the following year from the 2026 tax year), the natural unit is the full calendar year.

Count only rent received, not rent invoiced-but-unpaid, and include any charges you pass to the tenant that form part of the rent.

Step 2 — Apportion and Subtract Allowable Expenses

This is where the bill is really decided. If you are an EU/EEA resident, subtract the expenses directly linked to the let:

Mortgage interest, IBI, community fees, insurance
Repairs and maintenance (not capital improvements)
Building depreciation — commonly around 3% of the construction value (not the land value)
Landlord-paid utilities, and agency or management fees

Crucial detail: expenses are deductible only for the proportion of the period the property was actually rented. If the flat was let for 9 of 12 months, you can deduct roughly 9/12 of the annual standing costs. If you are a non-EEA resident, the deduction of rental expenses is restricted by statute, a restriction now contested — see the note below and our non-resident rental income tax guide.

Step 3 — Apply Your Rate

Apply the flat non-resident rate to the result of Step 2:

EU/EEA residents: 19% of net income
Non-EEA residents: 24% (on gross under the statutory restriction; a deduction claim may apply — see the note below)

That figure is the tax due for the period, which you pay when you file the Modelo 210.

Worked Example: Same Flat, Two Very Different Bills

Take a flat let for the full year at €1,200/month — €14,400 gross rent — with these annual costs: IBI €450, community €1,200, insurance €300, mortgage interest €2,400, repairs €600, depreciation €3,600 (3% of a €120,000 construction value) and management €1,000. Total deductible expenses: €9,550.

EU/EEA landlord: – Net income: €14,400 − €9,550 = €4,850 – Tax at 19%: €921.50 for the year

Non-EEA landlord (traditional gross rule): – Taxed on gross: €14,400 × 24% = €3,456 for the year

Same property, same rent — but the non-EU owner pays nearly four times as much under the no-deductions rule. That gap is exactly why the deduction claim matters: if a non-EU owner’s deduction claim succeeds, the bill falls to 24% of €4,850 = €1,164. These figures are an illustration; your own numbers and cadastral value will differ.

Non-EU residents and rental expenses — the current position. Although the Spanish Non-Resident Income Tax Act currently restricts the deduction of rental expenses to residents of the EU/EEA, the Spanish National Court (Audiencia Nacional) ruled on 28 July 2025 that this restriction is contrary to the principle of free movement of capital and may also infringe applicable double taxation treaties. As a result, non-EU residents may have grounds to claim a refund of tax previously paid on gross rental income by requesting a rectification of their Form 210 tax returns. This area of law is currently evolving and specialist advice should be obtained.

Do Not Forget the Empty-Period Imputed Tax

For any part of the year the property is not rented and is available to you, a separate imputed income tax applies: a notional 1.1% of the cadastral value (2% if not revised in the last ten years), taxed at your rate and declared on an annual Modelo 210. Budget for it alongside the rental tax. If you are still at the buying stage, our guide to buying property in Spain to rent out covers the wider compliance picture.

How QuickLease Can Help

QuickLease is CostaLuz Lawyers’ rental-compliance check. Once it confirms a property can legally be let, our tax team can run your real numbers through exactly this calculation — gross rent, the deductions you qualify for, the correct rate, and the annual Modelo 210 schedule — so you know your true net yield rather than a rule-of-thumb estimate.

QuickLease is a compliance review and does not replace personalised tax advice on your own figures.

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This article provides general information and a simplified illustration; it is not definitive legal or tax advice. The example figures are hypothetical. Obtain advice on your own numbers before filing.

Reviewed by María Luisa de Castro de Castro, Expert in Off-Plan Property Investment, CostaLuz Lawyers (Ilustre Colegio de Abogados de Cádiz no. 2745). CostaLuz Lawyers has supported the international community in Spain since 2006.

How to Calculate Tax on Your Spanish Rental Income: A Step-by-Step Guide (2026)