Calculating Spanish rental income tax depends on three things: whether you are a tax resident, whether you are EEA-based or further afield, and whether the rental is long-term or short-term tourist letting. Get the residency classification wrong and you either over-pay or face a back-tax assessment. The 2024 Housing Act introduced a deduction of up to 90% of net rental income for residents renting long-term — a structural shift in how the calculation runs in 2026.
The Three Tax Profiles
Spain treats three categories of rental landlords differently. Spanish tax residents add net rental income to general IRPF and pay the progressive scale (19%-47%, with regional variations on the upper bands). EEA non-residents (EU-27 plus Iceland, Liechtenstein, and Norway) pay a flat 19% on net rental income — they can deduct allowable expenses. Non-EEA non-residents (UK post-Brexit, US, all others) pay a flat 24% on gross rental income — they cannot deduct expenses at all.
Step-by-Step Calculation for Residents
Step 1: total annual rental income across all properties. Step 2: subtract deductible expenses — IBI (council tax), community fees, repairs and maintenance, mortgage interest, insurance, agent commissions, depreciation (3% of construction value), legal and accounting fees. Step 3: apply the long-term reduction. Under the 2024 Housing Act, residents renting to a permanent tenant can deduct up to 90% of the resulting net income (the exact percentage depends on the rental zone classification and whether the rent has been stabilised). Step 4: add the resulting figure to your IRPF base and apply the progressive scale.
Step-by-Step for EEA Non-Residents
Step 1: gross rental income. Step 2: subtract the same allowable expenses available to residents (IBI, community fees, repairs, mortgage interest, insurance, agent commission, depreciation). Step 3: apply 19% to the net figure. Step 4: file Modelo 210 annually — 1–20 January for 2024 and 2025 income, 1–20 April of the following year from the 2026 tax year. EEA non-residents enjoy near-resident treatment on deductions; the lower flat rate frequently produces a smaller bill than the resident progressive scale would.
Step-by-Step for Non-EEA (UK, US, Others)
Step 1: gross rental income. Step 2: apply 24% directly. There is no Step 3 — non-EEA non-residents cannot deduct any expenses. Mortgage interest, repairs, IBI, agent fees: none of it reduces the taxable base. UK landlords post-Brexit moved into this category, which significantly increased their effective Spanish tax bill compared to their pre-2021 position. Filing is on Modelo 210 annually — 1–20 January for 2024 and 2025 income, 1–20 April from the 2026 tax year.
Long-Term vs Short-Term Tourist Letting
The 90% reduction applies only to long-term residential lets to a habitual tenant — typically twelve-month or longer contracts under the LAU. Short-term tourist letting (VFT in Andalusia, similar regional licences elsewhere) does not qualify for the reduction even for residents, because the law treats these as quasi-commercial activity. Tourist lets are taxed at the standard progressive rate for residents and the flat 19%/24% for non-residents, with no Housing Act benefit.
Frequently Asked Questions
Which form do I file?
Residents include rental income on Modelo 100 (the annual IRPF return). Non-residents file Modelo 210 once a year for the rent received during the tax year — between 1 and 20 January for 2024 and 2025 income, and between 1 and 20 April of the following year from the 2026 tax year under Orden HAC/623/2026. Late filing carries surcharges plus interest.
Does Brexit change my rental tax position?
Yes. Pre-2021 UK landlords were treated as EEA (19% flat with deductions). Post-Brexit they are non-EEA (24% flat with no deductions). For most UK landlords this materially increased the tax bill — though shifting to Spanish residency or a Spanish company structure can change the calculation.
Can I depreciate my property?
Residents and EEA non-residents can apply 3% annual depreciation on the construction value (not the land value) — typically calculated as the cadastral construction-value share of the total cadastral value. Non-EEA non-residents cannot use depreciation, in line with the no-deduction rule.
Disclaimer: This information is provided for general guidance purposes only and does not constitute personalised tax or legal advice. Each case must be assessed individually according to the client’s specific circumstances. It is essential to consult a qualified specialist before taking any action or making any decision.Related 2026 guides
Reviewed by: Maria Luisa de Castro, Expert in Off-plan Property Investment, CostaLuz Lawyers. Last updated: May 2026.
This content has been prepared with the assistance of artificial intelligence and reviewed by María Luisa de Castro, a lawyer specialising in Real Estate Law and founder of CostaLuz Lawyers.
The information provided is general and indicative in nature. It should not be used as the sole basis for making professional, legal or investment decisions, and CostaLuz Lawyers assumes no responsibility for decisions taken solely on the basis of this content.
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