Modelo 210: Spain's Annual Non-Resident Property Tax

What is Modelo 210?

Modelo 210 is Spain's annual income tax declaration for non-residents (IRNR — Impuesto sobre la Renta de No Residentes). If you own property in Spain but do not live there as a tax resident, you owe this tax every year — full stop.

The logic behind it: Spanish tax law assumes that owning a property generates a deemed "imputed rental income" even if you never rent it out. You are taxed on this notional income.

Who must file?

You must file Modelo 210 if you are all of the following:

• A non-resident of Spain (you spend fewer than 183 days per year in Spain)
• An owner of Spanish property (as registered on the escritura)
• Not already paying Spanish income tax as a resident (Modelo 100)

If you jointly own property with a spouse or partner, each owner must file separately — even if the tax is tiny.

How is the tax calculated?

For a property you use personally (not rented), the calculation has two steps:

Step 1 — Calculate imputed rental income

The imputed rental income is a percentage of the cadastral value (valor catastral):

• 1.1% of the cadastral value if the value was revised after 1 January 1994
• 2% of the cadastral value if the value has never been revised (older cadastral values)

Most properties in Mallorca use the 1.1% rate.

Step 2 — Apply the tax rate

Example: German owner, €400,000 property, cadastral value €180,000

1. Imputed income: €180,000 × 1.1% = €1,980
2. Tax: €1,980 × 19% = €376.20 per year

If you rent your property out

If you rent the property (even occasionally via Airbnb), you must declare actual rental income rather than imputed income on Modelo 210. EU/EEA residents can deduct eligible expenses (mortgage interest, management fees, repairs). Non-EU residents (UK, US) cannot deduct expenses — they pay 24% on gross rental income.

You must file a separate Modelo 210 for each quarter in which you received rental income.

Key deadlines

How to file

There are three ways to file Modelo 210:

1. Use a gestoría (recommended) A gestoría is a Spanish administrative agent who files on your behalf. Costs typically €80–€200 per year. This is by far the easiest option and eliminates the risk of errors.

2. File online yourself You can file through the Agencia Tributaria website if you have an FNMT digital certificate or Cl@ve PIN. The process requires:

• Your NIE number (see Modelo 030 if you haven't activated yours)
• Your property's referencia catastral
• Your cadastral value
• Your bank account for direct debit (or you can print the form and pay at a bank)

3. File by paper Paper filing is still accepted at Spanish bank branches. Practically speaking, the online route is easier if you already have a digital certificate.

What about years I haven't filed?

If you've owned property in Spain but haven't been filing Modelo 210, you are in arrears. The statute of limitations is 4 years, so Hacienda can theoretically go back 4 years. The penalty for late filing ranges from 5% to 20% of the tax owed, plus interest of around 3.75% per year.

Many owners in this situation file the outstanding returns voluntarily (called a regularización voluntaria) — this reduces penalties significantly compared to being caught in a Hacienda audit.

A gestoría can help you catch up on unfiled years efficiently.