Annual Tax Obligations for Non-Resident Property Owners in Spain

Buying a property in Mallorca is an exciting milestone, but it comes with ongoing tax obligations that many foreign owners only discover after the purchase is complete. Spain requires non-resident property owners to file annual tax declarations, pay local property taxes, and in some cases appoint a fiscal representative -- even if the property sits empty for 364 days of the year.

This guide walks you through every annual tax obligation you face as a non-resident property owner in Spain, with practical advice on how to file, what the deadlines are, and what happens if you miss them. All figures reflect the 2025-2026 tax year.

Who Counts as a Non-Resident?

For Spanish tax purposes, you are a non-resident if you:

• Spend fewer than 183 days per year in Spain
• Do not have your principal centre of economic interests in Spain
• Your spouse and dependent children do not habitually reside in Spain (unless you can prove legal separation)

Most British, German, Scandinavian, and other international buyers who own a holiday home in Mallorca fall squarely into the non-resident category. If you are unsure about your residency status, consult a qualified tax adviser -- the distinction affects not just your tax rates but also which taxes you must pay and how you declare them.

Modelo 210: The Non-Resident Income Tax Declaration

The Modelo 210 (Impuesto sobre la Renta de No Residentes) is the form that non-resident property owners must file with the Agencia Tributaria (Spanish tax authority). It covers your non-resident income tax liability, which arises in two main scenarios: imputed income on empty properties and actual rental income.

Imputed Income Tax (Empty Properties)

This is the tax that surprises most foreign owners. Even if your Mallorca property generates no rental income whatsoever, Spain imputes a notional rental income and taxes you on it. The rationale is that the property could theoretically generate income, and the state taxes that potential.

The calculation is as follows:

1. Find your property's valor catastral (cadastral value). This appears on your annual IBI bill.
2. Apply a rate of 2% to the cadastral value. If the cadastral value was revised within the last 10 years, the rate drops to 1.1%. (Most urban properties in Mallorca have been revised recently, so 1.1% typically applies.)
3. The result is your imputed income.
4. Apply the non-resident income tax rate to this figure.

Tax Rates by Residence

Tax Residence	Rate on Imputed Income	Can Deduct Expenses?
EU/EEA residents (Ireland, Germany, France, etc.)	19%	No (imputed income has no deductible expenses)
Non-EU residents (UK post-Brexit, USA, etc.)	24%	No

Worked Example: Empty Holiday Apartment

A British couple owns a two-bedroom apartment in Pollensa with a cadastral value of 180,000 euros (revised within the last 10 years). They use it for holidays but never rent it out.

• Imputed income: 180,000 x 1.1% = 1,980 euros
• Tax at 24% (UK residents, post-Brexit): 1,980 x 24% = 475.20 euros per year

An Irish couple with the same property would pay 1,980 x 19% = 376.20 euros per year.

The difference of nearly 100 euros annually might seem modest, but it is the rental income tax where the post-Brexit divergence truly bites (see our comprehensive tax guide for details).

Rental Income Tax

If you rent out your property -- whether as a long-term let or a holiday rental -- the income is subject to non-resident income tax. The rates are the same as for imputed income (19% for EU/EEA residents, 24% for non-EU), but with one critical difference:

• EU/EEA residents may deduct proportional expenses (mortgage interest, management fees, repairs, insurance, community charges, IBI, depreciation) from rental income before applying the 19% rate
• Non-EU residents (including UK nationals) are taxed on gross rental income at 24% with no expense deductions

This is one of the most punishing post-Brexit consequences for British landlords in Spain. For a property generating 25,000 euros in annual rent with 10,000 euros in legitimate expenses, the tax difference is stark:

Scenario	Calculation	Annual Tax
EU resident (e.g., Ireland)	(25,000 - 10,000) x 19%	2,850 euros
UK resident (post-Brexit)	25,000 x 24%	6,000 euros

That is more than double the liability. If you are a UK resident with rental property in Mallorca, professional tax advice is not optional -- it is essential.

Modelo 210 Filing Deadlines

The deadlines depend on the type of income:

Income Type	Filing Frequency	Deadline
Imputed income (empty property)	Annual	31 December of the following year (e.g., 2025 income filed by 31 Dec 2026)
Rental income	Quarterly	Within 20 calendar days after each quarter end (20 Apr, 20 Jul, 20 Oct, 20 Jan)
Capital gains on sale	One-off	Within 3 months of the sale date

For the quarterly rental income declarations, each quarter covers a specific period: Q1 (January-March), Q2 (April-June), Q3 (July-September), Q4 (October-December). If you rent out your property only during summer, you still need to file quarterly declarations for the quarters in which rental income was received, plus the annual imputed income declaration for the quarters the property was empty.

How to File Modelo 210

Modelo 210 is filed electronically through the Agencia Tributaria's Sede Electronica (electronic office). You need:

• A digital certificate or Cl@ve PIN to access the system
• Your NIE (foreigner identification number)
• Your property's referencia catastral (cadastral reference number)
• A Spanish bank account for payment (or an IBAN for refunds)

In practice, most non-resident owners delegate this to their asesor fiscal (fiscal adviser), who files on their behalf using a power of attorney. The cost is typically included in their annual management fee.

IBI: Spain's Annual Property Tax

The IBI (Impuesto sobre Bienes Inmuebles) is a municipal property tax charged by your local ayuntamiento (town hall). Think of it as the Spanish equivalent of UK council tax, though the calculation method is entirely different.

How IBI Is Calculated

IBI is calculated as a percentage of the cadastral value. Each municipality sets its own rate within a legally permitted range:

• Urban properties: 0.4% to 1.1%
• Rural properties (rustica): 0.3% to 0.9%

Cadastral values in Mallorca are often significantly below market values, though the gap has narrowed as municipalities have revised their cadastral records. A property with a market value of 500,000 euros might have a cadastral value of 150,000-300,000 euros.

Typical IBI Amounts in Mallorca

Property Type	Location	Typical Annual IBI
Apartment	Palma	400 - 1,200 euros
Villa	Calvia / Andratx	800 - 3,000 euros
Townhouse	Santa Maria / Alaro	300 - 800 euros
Finca / country house	Rural areas	300 - 1,500 euros

Payment and Deadlines

IBI is billed once per year, typically between September and November, though the exact dates vary by municipality. Payment methods include:

• Direct debit (domiciliacion bancaria): The recommended approach. Set up a standing order with your Spanish bank, and the payment is taken automatically. This eliminates the risk of missing a deadline because you were not in Spain when the bill arrived.
• In person: Pay at your local bank or town hall during the voluntary payment period.
• Online: Some municipalities offer online payment through their website.

Late payment incurs surcharges: 5% if paid within 3 months, rising to 10% after 3 months, 15% after 6 months, and 20% after 12 months, plus interest.

Basura: The Waste Collection Tax

The tasa de basura (waste collection tax) is a municipal charge for rubbish collection and disposal. It is separate from IBI and billed independently by the ayuntamiento.

The amount varies by municipality and property type but is generally quite modest -- typically 50 to 200 euros per year for a residential property. Some municipalities include it in the IBI bill; others send a separate demand.

Like IBI, this is best managed via direct debit to ensure it is paid on time even when you are not in Spain.

Community Fees (Gastos de Comunidad)

If your property is part of a community of owners (comunidad de propietarios) -- which is the case for all apartments and many townhouse or villa developments -- you will pay monthly or quarterly community fees. These are not a tax, but they are a mandatory ongoing cost.

Community fees cover shared expenses such as building insurance, maintenance of common areas, lift servicing, pool maintenance, and a reserve fund for major repairs. Amounts range from 50 euros per month for a simple apartment block to 500+ euros per month for a luxury development with extensive communal facilities.

Non-payment of community fees can result in legal action, and debts are attached to the property (they pass to the new owner if you sell).

Wealth Tax (Impuesto sobre el Patrimonio)

Non-residents with Spanish assets exceeding 700,000 euros in net value are liable for wealth tax. This is an annual obligation declared using Modelo 714, filed between April and June.

The Balearic Islands apply their own regional rates, which range from 0.28% on the first 170,472 euros of taxable base to 3.45% on amounts exceeding 5,455,133 euros. For most property owners, the practical impact is limited unless the property's fiscal value (the higher of the cadastral value or acquisition price) exceeds the 700,000-euro per-person threshold.

Couples who own jointly each benefit from their own 700,000-euro exemption, meaning a jointly-held property worth up to 1,400,000 euros falls below the threshold entirely.

Appointing a Fiscal Representative

While Spain does not legally require non-resident property owners to appoint a fiscal representative (representante fiscal), it is strongly advisable for several practical reasons:

• Filing on your behalf: A fiscal representative files your Modelo 210, Modelo 714, and handles any correspondence with the Agencia Tributaria
• Receiving notifications: The Spanish tax authorities send correspondence to a Spanish address. Without a representative, you may miss important notifications, including tax demands and penalty notices.
• Managing IBI and basura: Your representative can ensure local taxes are set up on direct debit and monitor payments
• Dealing with inspections: If the Agencia Tributaria queries your tax position, your representative responds on your behalf
• Sale support: When you sell, your representative handles the Modelo 210 for capital gains and the 3% retention reconciliation

Who Can Be Your Fiscal Representative?

Your representative can be any individual or entity resident in Spain. In practice, most foreign owners appoint one of the following:

• An asesor fiscal (tax adviser): The most common choice. They specialise in non-resident tax compliance and typically charge 300-800 euros per year for ongoing management.
• A gestoria (administrative agency): A Spanish institution that handles paperwork and filings. Often slightly cheaper than a dedicated tax adviser, though with less strategic advice.
• A lawyer: Some property lawyers offer fiscal representation as part of a broader retainer. This can be useful if you also need legal advice on other matters.

Cost of a Fiscal Representative

Expect to pay between 300 and 800 euros per year for standard tax compliance services (annual Modelo 210, IBI monitoring, and general fiscal oversight). For rental properties requiring quarterly filings, the cost is typically at the higher end of this range or slightly above. Given that penalties for late or incorrect declarations start at 100 euros per filing and can escalate significantly, the cost of professional representation is excellent value.

Penalties for Non-Compliance

The Agencia Tributaria is increasingly effective at identifying non-compliant foreign property owners, thanks to automatic information exchange under the Common Reporting Standard (CRS) and the EU Directive on Administrative Cooperation (DAC). Penalties include:

• Late filing surcharge: 1% per month of delay (up to 12 months), plus interest from month 13
• Failure to file: Penalties of 50-150% of the tax due, depending on whether the omission is classified as minor, serious, or very serious
• Minimum penalty per unfiled declaration: 100 euros for Modelo 210
• Interest on unpaid tax: Currently approximately 3.75% per year on the outstanding amount

In practice, the Spanish authorities have been issuing an increasing number of compliance notices to foreign property owners who have never filed a Modelo 210. If you have owned a property for several years without filing, the accumulated penalties and back taxes can be substantial. Consult a tax adviser promptly to regularise your position -- voluntary disclosure before an investigation typically results in reduced penalties.

Annual Tax Calendar for Non-Resident Property Owners

Here is a summary of the key dates throughout the year:

Month	Obligation
January (by 20th)	Modelo 210 for Q4 rental income (Oct-Dec of previous year)
April (by 20th)	Modelo 210 for Q1 rental income (Jan-Mar)
April - June	Modelo 714 (wealth tax) if applicable
July (by 20th)	Modelo 210 for Q2 rental income (Apr-Jun)
September - November	IBI payment (varies by municipality)
October (by 20th)	Modelo 210 for Q3 rental income (Jul-Sep)
December (by 31st)	Modelo 210 for imputed income (previous full year)

Getting Your NIE and Spanish Bank Account

To fulfil your tax obligations, you need two essential prerequisites:

• NIE (Numero de Identidad de Extranjero): Your foreign identification number, required for all tax filings and property transactions. See our guide to obtaining your NIE in Mallorca.
• Spanish bank account: Necessary for paying taxes, receiving refunds, and setting up direct debits for IBI and community fees. Most Spanish banks offer non-resident accounts, though some require a minimum balance or charge annual maintenance fees.

Stay Compliant, Stay Stress-Free

The annual tax obligations for non-resident property owners in Spain are not onerous in terms of the amounts involved -- for a typical holiday home, the total annual cost (imputed income tax, IBI, basura, and fiscal representative fees) might be 1,500-3,000 euros. What catches people out is the complexity and the deadlines.

The simplest approach is to appoint a competent fiscal representative from the day you buy the property. They handle everything, you receive a summary once a year, and your obligations are met without you having to navigate the Spanish tax system from abroad. It is a modest investment that eliminates a disproportionate amount of worry.