Spanish Tax Form 210 ▷ Income Tax for Non-Residents

What is the tax form 210 in Spain?

The Spanish tax form 210 is the Income Tax for Non-Residents (Impuesto Sobre la Renta de no Residentes or IRNR) that it is submitted to the Spanish Tax office. It’s a non- resident property tax that applies to any non- resident who owns a property in Spain.   Many foreigners who want to buy property in Spain, and even those who have already bought one are not aware that they have to submit an annual income tax declaration in Spain through the form number 210.

The Form 210 is a multi-faceted form for use by non-residents to pay tax in Spain on various income streams including rental income, capital gains on property sales and deemed income and it can only be completed online.

Bureaucracy and taxes in Spain can be complicated and you could be subject to fines or penalties if you miss a deadline or don’t do your taxes properly. It is highly recommended that you seek fiscal advice from an expert to avoid possible complications.

What are the different taxes you have to pay on Spanish properties?

There are 3 taxes to pay on a property if you are a non-resident

• Income Tax. This Spanish income tax for people who are not residents in Spain only takes on account the Spanish property income. Other income would be declared in the country of residence. There are two different cases:
• When the property is only used by yourself, the tax is a percentage of the value of the property. Also known as deemed income tax.
• If you on the other hand rent the property out, you would have to declare and pay the tax on the amount received as rental income in another 210 form on a quarterly basis.
• Property Tax (IBI). This is the local yearly council tax bill that has to be paid by the owner once a year, normally this is done by direct debit. The exact same tax applies to residents of Spain as well.
• Rubbish Collection Tax: Also considered a local tax and it covers the collection of rubbish from residential areas.

Capital gain tax. Tax on the profit when you sell a property which currently stands at 19%

What is the Income tax on properties for non- residents ? (Deemed income).

The annual mandatory income tax for non-resident property owners is also known as tax for the “deemed income”. This tax return is to be presented yearly using tax form 210 with deadline 31/12/xx, one tax form per owner. This is a tax based on the cadastral value of the property and it applies only to those days of the year that the property was not rented out. 

For example, for the full year 2021 the deadline is 31/12/2022. You will find the most up-to-date cadastral value on your annual property tax (Impuesto sobre Bienes Inmuebles- IBI) bill

What is the Income tax on properties for non- residents who rent their properties out?

This is the tax payable by individuals who live outside Spain but receive benefits for income obtained from the rental of properties that are located within Spanish territory. For them the presentation of the form 210 is also compulsory. When it comes to declaring short term rental income for non-residents the obligation is to declare the rental income quarterly during the current year. One tax form per owner

When do you have to submit tax form 210 to the tax office?

What is the deadline to file form 210 with the tax administration when the result of the self-assessment is to be paid? The deemed income from properties: must be declared during the calendar year following the accrual date.

Income derived from transfers of real estate (capital gains): Is to be submitted three months after the expiration of a period of one month from the date of the transfer of the property.

Rest of income: the first twenty calendar days of the months of April, July, October and January, in relation to the income whose accrual date is included in the previous calendar quarter. In Spain tax quarters are as follows:

1Q – From January 1^st to March 31^st. – Deadline for tax presentations: 20 April

2Q – From April 1^st to June30th . – Deadline for tax presentations: 20 July

3Q – From July 1^st to September 30^th. – Deadline for tax presentations: 20 October

4Q – From October 1^st to December 31^st . – Deadline for tax presentations: 20 January

How are the taxes calculated in the form 210?

The calculation of tax payable for a non-Spanish resident for deemed income depends on the home country and whether that country is a member of the European Union or not. It also depends on which municipality the property is situated in. The tax payable is 2% of the cadastral value of the property as fictitious rental income. It can be reduced to 1.1% if the cadastral value has been raised– and in many cases it has been.

Regarding the calculation of non-resident property tax for rentals (Impuesto Sobre la Renta de no Residentes) as a tax on rental income for non-Spanish residents is done as follows: If a property is rented, then income tax must be paid on the gross amount of rental income received at a rate of 19% percent or 24% percent, depending on the country where you live.

Please bear in mind that since 2010, EU residents have been permitted to deduct allowable expenses, not so the Non- European residents.

What is the deadline for the submission of form 210 requesting the return of the amounts withheld in a property sale?

Income derived from the selling of a property, Capital Gains: within three months after the expiration of a period of one month from the date of the transfer of the real estate. This request of return of the amounts withheld is only applicable if the non-resident has filed the earlier 4 years of Non-resident property tax.

What are the differences in spanish tax form 210 for UK citizens after Brexit?

There are two main changes:

Firstly, the reduced rate of 19% is not applicable for UK citizens anymore and the general rate of 24% will have to be applied instead. (As Non- EU members).

The second and most important point is that they cannot deduct any expenses from the rental income anymore and therefore they will have to pay 24% of the full income without being able to deduct expenses such as the IBI, depreciation, mortgage interest, community expenses, insurance, management fees, etc.

This is the scheme with the differences in taxation for residents in the United Kingdom in the Income Tax of non-residents of Spain before and after January 1, 2021.

	Until 2020	From 2021
Rate %	19%	24%
Tax Base	Net Income	Full Income

How do you file tax form 210?

Spanish taxation can be complex if you are not familiar with the forms, or the rules. Legal and Accounting Network SL can advise and assist. Please phone us to discuss our fixed fee for non-resident income tax service or email us to receive a quote.