Guide · Owning and renting out
Taxes on your holiday home in Spain 2026: what owners from abroad pay
By Kamila Bukowska, founder of CASA READY · As of October 2026 · approx. 8 min read
The short answer
As an EU citizen you pay 19% Spanish income tax on renting out your holiday home, and only on the profit: management, running costs, property tax and 3% depreciation a year are deductible. In our example, a studio in Torrevieja, that is around €1,700 tax on €15,040 rental income. If you use the property yourself, only a small flat-rate tax applies, usually €100 to €200 a year for a typical new-build apartment. From 2027, one return a year is enough.
All taxes at a glance
| Tax | When | Amount |
|---|---|---|
| Income tax on rentals (IRNR) | for every year with rental income | 19% on profit (EU/EEA), 24% on income (other countries) |
| Flat-rate tax on own use (renta imputada) | for the days not rented out | 19% on 1.1% of the cadastral value, typically €100–200 a year |
| Property tax (IBI) and waste charge | annually to the town hall | typically €300–700 a year |
| Wealth tax | only for large assets in Spain | only above €700,000 per person, usually €0 for holiday homes |
| Capital gains tax | only on sale | 19% on the gain, 3% withheld by the buyer |
The 19% and 24% rates apply under Art. 25 of the Spanish Non-Resident Income Tax Act. “EU/EEA” covers all EU states plus Iceland, Norway and Liechtenstein.
Renting out: 19% on profit
If you live in another EU country, rental income from Spain is taxed at 19% after deducting all costs related to the letting. The legal basis is Art. 24.6 of the Non-Resident Income Tax Act, which refers to the rules of Spanish personal income tax. Deductible items include:
- management, platform commission, cleaning and laundry for guests
- community fees, property tax, insurance, electricity, water and internet
- repairs and maintenance, and interest on a mortgage
- depreciation: 3% a year on the building value (purchase price plus buying costs, excluding the land share)
Costs that run all year, such as community fees, property tax, insurance and depreciation, are deducted pro rata for the days the property was let. Keep invoices and a tax residence certificate from your home country; they support the deduction.
If you live outside the EU and EEA, for example in Switzerland or the UK, 24% applies to gross income with no deduction of costs.
Worked example: studio in Torrevieja
The same new-build studio as in our occupancy guide: €125,000 purchase price, €80 a night, calculated with the plan value for the first letting year and at market level.
| Plan value | Market level | |
|---|---|---|
| Nights let | 188 | 214 |
| Rental income | €15,040 | €17,120 |
| Management and platform (25%) | − €3,760 | − €4,280 |
| Fixed costs, pro rata | − €927 | − €1,055 |
| Depreciation, pro rata | − €1,528 | − €1,739 |
| Taxable profit | €8,825 | €10,046 |
| Spanish tax (19%) | − €1,677 | − €1,909 |
| Flat-rate tax for the remaining days | − €61 | − €52 |
| Net after all costs and taxes | €7,742 | €9,079 |
Assumptions: fixed costs €1,800 a year (community, property tax, insurance, utilities), building share 70% of purchase price plus 13% buying costs, cadastral value €60,000. The net figure deducts the full fixed costs; for tax purposes only the share of let days counts.
Result: effectively you pay around 18% on your surplus. Our yield calculator works out the net return for the property you have in mind.
Free tax guide
All tax rules on 8 pages, as a PDF
Overview of all taxes, worked example, deadlines from 2027, your home country and tips, ready to print. Kamila will send you the guide personally by email.
- All taxes at a glance
- Worked example with depreciation
- Deadlines and forms from 2027
- On request: a net calculation for your property
Own use: the flat-rate tax
Even if you do not rent the property out but use it yourself or leave it empty, Spain assumes a small notional income (renta imputada): 1.1% of the cadastral value if it was revised in the last ten years, otherwise 2%. EU citizens pay 19% on this, with no deduction of costs.
An example: cadastral value €60,000 × 1.1% = €660 × 19% = around €125 tax for a full year. For new-build apartments the cadastral value is usually well below the purchase price; you will find it on the property tax (IBI) bill. If you let the property for part of the year, the flat-rate tax only applies to the remaining days.
Deadlines and forms from 2027
All returns are filed on Modelo 210. With Orden HAC/623/2026 the Spanish Ministry of Finance has simplified the deadlines:
- Rental income: from the fourth quarter of 2026 one return a year, from 1 to 20 April of the following year. For July to September 2026 the old deadline of 20 October 2026 still applies.
- Own use (renta imputada): from 1 April to 31 December of the following year, so for 2026 from 1 April 2027. For 2025 the deadline runs until 31 December 2026.
- Property tax (IBI): billed by the town hall, most conveniently paid by direct debit from a Spanish account.
As an EU citizen you do not need a tax representative. In practice a gestoría usually handles the returns, typically for €150 to €400 a year. We are happy to put you in touch.
And in your home country?
As the country where the property is located, Spain has the first right to tax. How your home country deals with this is set out in the relevant double tax treaty:
Rental income from Spain is declared in Annex V. Under the 2011 treaty the Spanish tax is credited against German tax, so you do not pay twice. Pure own use creates no income in Germany.
Income from letting in Spain belongs in the Polish tax return (annex PIT/ZG). Tax paid in Spain is taken into account using the proportional credit method.
The property falls into Box 3. For assets in Spain the tax office grants a reduction to avoid double taxation, which you claim in your return. A new treaty with Spain is in preparation.
The rules in your home country depend on your personal situation. Have your first return checked by a tax adviser; we are happy to recommend contacts.
When you sell later
If you sell the property later, you pay 19% on the capital gain, i.e. the sale price minus purchase price, buying costs and investments. The buyer withholds 3% of the price and pays it to the tax office; this is offset against your tax and any surplus is refunded. In addition there is the municipal land value tax (plusvalía municipal).
How not to pay more than necessary
- Collect every invoice: each deductible expense lowers your tax by 19% of its amount.
- Use depreciation: 3% a year on the building value, including the buying costs.
- Record the nights let: they determine the deductible share of fixed costs.
- Set a fixed date: from 2027 every April for the previous year's rental income.
- Calculate before you buy: our yield calculator shows the return after costs and tax.
How much is left on the property you have in mind?
Tell us the property, or town and budget. We work out rental income, costs and taxes and recommend a gestoría for the ongoing returns. Free and without obligation.
Frequently asked questions
How much tax do foreigners pay on rental income in Spain?
Owners resident in the EU, Iceland, Norway or Liechtenstein pay 19% on the profit after deducting all costs and depreciation. Everyone else pays 24% on gross income.
Do I pay tax if I only use my holiday home in Spain myself?
Yes, but only a small flat-rate tax: 19% on 1.1% (or 2%) of the cadastral value. For a typical new-build apartment that is usually €100 to €200 a year.
When do I have to file Modelo 210?
For rental income from the fourth quarter of 2026, once a year from 1 to 20 April of the following year. For own use from 1 April to 31 December of the following year.
Do I pay wealth tax in Spain?
As a rule not for a holiday home. The allowance is €700,000 per person for assets in Spain, and mortgage debt is deducted.
Will I be taxed twice, in Spain and in my home country?
No. Double tax treaties prevent this: Germany and Poland credit the Spanish tax, the Netherlands grants a reduction in Box 3.
Legal basis and sources
- Royal Legislative Decree 5/2004, consolidated Non-Resident Income Tax Act, Art. 13, 24.6 and 25 (BOE)
- Agencia Tributaria: taxation of tourist rentals for non-residents (sede.agenciatributaria.gob.es)
- Agencia Tributaria: note on the new Modelo 210 deadlines under Orden HAC/623/2026, BOE of 23.06.2026 (sede.agenciatributaria.gob.es)
- Law 35/2006 (IRPF), Art. 85 renta imputada; Agencia Tributaria, renta imputada example (PDF)
- Law 19/1991 on Wealth Tax (BOE)
- Double tax treaties between Spain and Germany (2011), Poland (1979, amended by the MLI) and the Netherlands (1971)
As of 13 October 2026. This guide is not tax advice. Costs such as property tax and gestoría are typical values.