What IRNR is and who has to pay it
Non-Resident Income Tax (IRNR) taxes the income you earn in Spain when your tax residence is in another country. If you own a home on the Costa del Sol but live outside Spain, you pay tax on it in Spain via Form 210, whether or not you rent it out. You file it yourself (or your representative does), because there is no Spanish company withholding the tax for you.
It applies to any non-resident with urban property in Spain: Britons after Brexit, Germans, Nordics, Swiss, Americans, etc. What changes between them is the tax rate and whether you can deduct expenses — and that depends on whether or not you are resident in the EU/EEA.
Two scenarios: empty home (deemed income) vs rented home
The tax office distinguishes two situations, and the same property can go through both in the same year (for example, rented in summer and at your disposal the rest of the time):
- Deemed income — for the days the home is empty or for your own use, the tax office considers that you obtain a "benefit" simply from owning it, and charges you a notional income.
- Rental income — for the days you rent it out, you declare the actual income from the letting.
Rates and base by where you live (EU/EEA vs rest of the world)
This is the key difference, and the one that hit British owners hardest after Brexit:
| Item | EU / EEA resident (Germany, Sweden, Netherlands, Ireland…) | Resident OUTSIDE the EU (UK, USA, Switzerland…) |
|---|---|---|
| Tax rate | 19% | 24% |
| Base you pay on (rental) | Net profit (income − expenses) | Gross income (no deductions) |
| Deductible expenses | Yes (pro rata to days rented) | No, as a general rule |
| Deemed income (empty home) | 19% on 1.1%–2% of cadastral value | 24% on 1.1%–2% of cadastral value |
| Capital gain on sale | 19% | 19% |
In practice a British owner pays a higher rate (24% vs 19%) and on a larger base (the gross, with no expenses deducted). That is why, for Britons, having the rental properly planned and declared matters more than ever.
Deemed income: how it's calculated
For the days the home is not rented out you declare a deemed income. The base is a percentage of the cadastral value (found on your IBI/council-tax bill):
- 1.1% of the cadastral value if the municipality has reviewed values in the last ten years.
- 2% if it has not been reviewed within that period.
Illustrative example: a home with a cadastral value of €200,000 (reviewed), at your disposal all year. Deemed base = 1.1% × 200,000 = €2,200. A German resident would pay 19% × 2,200 = €418; a British resident, 24% × 2,200 = €528 per year.
Rental: how it's taxed and which expenses you can deduct
For the days rented you declare the actual income. If you are EU/EEA-resident you can subtract the expenses pro rata to those days and pay only on the profit. Non-EU residents, as a general rule, cannot deduct.
| Deductible expense (EU/EEA residents only) | Notes |
|---|---|
| IBI and refuse tax | Proportional to days rented |
| Community of owners fees | Proportional |
| Utilities (water, electricity, gas, internet) | Those you pay as the owner |
| Home insurance | Proportional |
| Mortgage interest | Interest only, not capital repayment |
| Repairs and upkeep | Not improvements/extensions (those go to the capital gain) |
| Depreciation of the building | 3% on the higher of the building's cadastral value or acquisition cost |
| Management and cleaning fees | Including the rental management commission |
Form 210 deadlines (2025 tax year, filed in 2026)
From 2024 income onwards, rental is no longer filed quarterly: it is grouped and filed once a year. Deemed income is annual too.
| Type of income | Frequency | Filing deadline |
|---|---|---|
| Rental (property income) | Annual (grouped) | First 20 calendar days of January of the year after accrual (2025 income → January 2026) |
| Deemed income (home at your disposal) | Annual | During the calendar year following accrual |
| Capital gain on sale | One-off | 3 months after the month of the sale ends (the buyer withholds 3% on account) |
Note: Form 210 deadlines have changed in recent tax years (Orden HAC/623/2026). We always confirm the exact date for the current year with the Spanish Tax Agency before filing.
Worked example: same flat, two owners
Illustrative figures. Apartment in Fuengirola, cadastral value €150,000 (reviewed), rented 120 days for €12,000 income with €3,000 of deductible expenses (IBI, community, utilities, management, depreciation). Deemed income applies for the remaining 245 days.
| German owner (EU) | British owner (non-EU) | |
|---|---|---|
| Rental — base | 12,000 − 3,000 = €9,000 (net) | €12,000 (gross) |
| Rental — tax | 19% × 9,000 = €1,710 | 24% × 12,000 = €2,880 |
| Deemed income — base (245/365 days) | 1.1% × 150,000 × 245/365 ≈ €1,107 | 1.1% × 150,000 × 245/365 ≈ €1,107 |
| Deemed income — tax | 19% × 1,107 ≈ €210 | 24% × 1,107 ≈ €266 |
| Total IRNR for the year | ≈ €1,920 | ≈ €3,146 |
The same property, with the same income, costs the British owner considerably more in tax. It can't be avoided, but it can be optimised: keeping clean records of days and income and never missing deadlines avoids surcharges.
If you sell the property
The gain on the sale is taxed at 19% for all non-residents. In addition, the buyer is required to withhold 3% of the price and pay it to the tax office on account of your tax (Form 211); you then settle the difference. If the withholding exceeds your tax, you can claim the refund.
What happens if you don't declare
The tax office cross-checks cadastral, utility and rental-platform data. If you don't file Form 210, it can claim the tax with surcharges, late-payment interest and penalties. Regularising on time is simple and far cheaper than a tax demand.
How we handle it at CDS Property Care
We coordinate the tax side with the rest of your property management: we keep the record of rented days and income (which we already generate by managing your rental), we prepare and file Form 210 for you, and we send you the summary and proof of filing. One point of contact to keep your home both managed and compliant.
This guide is general information, not personalised tax advice. Rules and deadlines change; we confirm each case against the rules in force before filing.