The income tax return for taxpayers with income from housing abroad

If you’re earning money by renting out property in Spain while living abroad, you’re required to declare that income to the Spanish tax authorities. But don’t worry—we’re here to guide you step by step through the Spanish tax on rental income, how to avoid double taxation, and how to declare your situation correctly if you live outside Spain.

What is the tax on rental income in Spain for non-residents?

The rental income tax in Spain applies to anyone—resident or not—who earns money from renting out Spanish property. Yes, even if you live in another country, Spain will tax you on income generated within its borders.

🧾 For non-residents, rental income is taxed under the Non-Resident Income Tax (IRNR) scheme.

Key details:

• Flat tax rate: 19% for residents in the EU/EEA, and 24% for others.
• No deductions: Non-EU residents cannot deduct expenses unless there’s a tax treaty.
• Declaration frequency: Usually quarterly.

How do you file a Spanish rental income tax return?

You need to submit a Spanish property rental income tax return using Form 210. This applies every time you receive rental income, usually once per quarter.

🛠 Here’s what you need:

1. Property details (address, cadastral value).
2. Rental contract and payment proofs.
3. Form 210, submitted online via the Spanish Tax Agency.

💡 Pro tip: If you’re in the EU or EEA, you might be able to deduct expenses like repairs, property management fees, and mortgage interest.

What about Spanish property tax return obligations?

If you’re a Spanish tax resident (even if living abroad temporarily), Spain taxes your worldwide income—including rental income from foreign property.

If you’re not a tax resident in Spain, rental income from foreign properties doesn’t need to be declared in Spain, but might still be taxable in your country of residence.

⚠️ Make sure to declare your real estate in both countries when required. Penalties for hiding assets can be high.

The double taxation deduction

If you pay tax on rental income in another country, Spain may allow a deduction to avoid double taxation—but only if a tax treaty exists.

🧾 For example:

• You rent a flat in Barcelona but live in Germany.
• Germany taxes your rental income.
• You can deduct what you’ve already paid in Germany when filing in Spain, up to the Spanish tax amount.

🔍 Always check the tax treaty between Spain and your country to understand what can be deducted.

How do you declare a situation of residing abroad, whether for a long or short stay?

Your tax residence depends on how long you stay in Spain:

• More than 183 days/year → Spanish tax resident.
• Less than 183 days and main income/life abroad → Non-resident.

🛂 Even a short move abroad (e.g. 6 months) can shift your tax obligations. Notify Spanish authorities if your residency status changes.

Steps to declare your non-resident status:

1. Fill out Form 030 to update your address.
2. Submit documentation proving your residence abroad (e.g. tax certificate, employment contract).
3. Use Form 210 for rental income while you’re abroad.

Real-life example: How much tax would you pay?

Let’s say you rent out a flat in Valencia for €1,200/month:

• Annual income: €14,400
• If you’re an EU resident: 19% tax = €2,736 (you can deduct expenses)
• If you’re a non-EU resident: 24% tax = €3,456 (no deductions allowed)

💰 If you’re in the EU and spent €2,000 on maintenance, you could deduct that and pay tax only on €12,400 → €2,356.

Understanding the tax on Spanish rental income as a non-resident can feel overwhelming—but it doesn’t have to be. Here are the key takeaways:

• You must declare rental income from Spanish property, even if you live abroad.
• Use Form 210, usually quarterly.
• You might benefit from double taxation relief, especially if you’re in the EU.
• Know your tax residence status and update it if you move.

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