If your Spanish property is for for personal use and NOT let out at all it is still liable for Renta Imputada – Deemed Income tax declarable on a form called Modelo 210.
If your property is left empty, even though you do not let out your holiday home for gain, Spanish law assumes you have what is called a “Deemed (Rental) Income” which is subject to non-resident Income Tax.
The “Deemed (Rental) Income”, which historically was included on the old Modelo 214 form, is now declared on a Modelo 210 form. In 2011 the format of this form changed to be more user friendly, being reduced from 7 pages to 3!
However the authorities are cramming a lot more into those three pages than they used to! The following information is now obligatory for ALL owners:
- National Insurance number in your country (if you are reading this site probably the UK)
- Spanish NIE number
Date of Birth,
Town of Birth (as per your passport)
Country of Fiscal residence (probably UK but needs to be confirmed)
Address in your country of residence (probably but not necessarily the UK)
- Full Address of the property or properties in Spain
Catastral reference number of Property in Spain (shown on the IBI bill)
An IBAN bank account number to include on the form so that you can pay from your bank.
We offer a service to draw up these Deemed income tax returns at 65 euros per property per year as long as the property is owned by between 1 and 3 people, as a return is required for each owner of the property. If you let out for gain (see here) please contact us to ask for detailed information.
The amount you pay is calculated using the “Valor Catastral” (Rateable Value) of your property in Spain. This can be easily ascertained by looking at the receipt for your “Impuestos Sobre Bienes Inmuebles” or IBI, (often referred to by English speakers as “Rates”) – which is paid to your “Ayuntamiento” annually.
|Non Residents Tax – Changes to information available on IBI Bills
As some of you may have noticed if you pay your “Impuestos Sobre Bienes Inmuebles” (local authority rates) through your bank they are no longer giving full details on the bank slips.
If you pay your “Ayuntamiento” directly in their offices annually you will receive a receipt with all the information you need.
If you pay by direct debit and your Ayuntamiento uses the Consorcio de Tributos de Tenerife to collect this on their behalf you can go on line and access a copy of the IBI receipts showing the full information. You will need to have your IBAN bank account number and NIE number to hand. See here –
If your local authority does not use Consorcio (such as Adeje) then it may be helpful to make a trip to your town hall to ask for a printout for 2016 or for Adeje you can email
attaching a scan of the bill payer’s NIE and passport and asking for “información acerca del valor catastral de la propiedad con referencia catastral 123456CS1234Y1236BC” (obviously this is a made up number to show you the format of the catastral reference) -you will find this number on an old IBI bill or on your deeds.
Previously this receipt told you whether the rateable value of your property had been revised since 1st January 1994 but from the 2015 tax year the percentage will be dependant on whether the catastral revision date is within the previous 10 years. So the tax rate is only 1.1% if within 10 years of taxable date, otherwise it is 2%. The actual tax payable on the “Deemed (Rental) Income” derived using the coefficient is……..
- 24 per cent for the 2011 tax year
- 24.75% for income from the 1/1/2012 until 31/12/2014 and then
2015 payable in 2016 :
- Contributors who are fiscally resident in the EU, Iceland and Norway: 19,5%
Rest of contributors 24%
and for the tax year 2016 payable in 2017
- Contributors who are fiscally resident in the EU, Iceland and Norway: 19%
Rest of contributors 24%
The deadline for the submission of form Modelo 210 is the 31st December 2017 for income deemed or actually derived in 2016 unless you have more than one property in which case the deadline is the 30th June 2017.
All of the above applies to Non-residents with no permanent establishment but who own a holiday home in Spain
An example of a receipt for “Impuestos Sobre Bienes Inmuebles” or IBI is shown below: The format can vary between Ayuntamientos, or whether you get the receipt direct from the Ayuntamiento or from the Consorcio system. But all the information you need will be on there.
Based on the receipt below here are some examples of a calculation of the tax due for the 2015 tax year payable up to Dec 2016 :
|Tax Year 2016 – UK resident||Tax Year 2016 – UK resident||Tax Year 2016 – NON EU resident|
|Catastral revision Year 2000||Catastral revision Year 2009||Catastral revision Year 2000|
|2016-2000=16 ie MORE than 10 years||2016-2009=7 ie LESS than 10 years||2016-2000=16 ie MORE than 10 years|
|So coefficient in this case is 2%||So coefficient in this case is 1.1%||So coefficient in this case is 2%|
|Catastral Value is 33,325.86||Catastral Value is 33,325.86||Catastral Value is 33,325.86|
|33,325.86 x 2% x 19,0%||33,325.86 x 1.1% x 19,0%||33,325.86 x 2% x 24%|
|Tax to declare on modelo 210 = 126 euros 64 cents||Tax to declare on modelo 210 = 69 euros 65cents||Tax to declare on modelo 210 = 159 euros 96 cents|
Do you know someone who has owned property for years and never made a declaration? Probably. However, if they are caught, and computerised records are making that ever more likely, they are liable to pay the last four year’s tax and probably a hefty fine. I wrote (and update) this article with the aim of making non-resident homeowners aware of their legal obligation to submit an annual income tax declaration in Spain; it is not intended to be a crash course on Spanish tax law. As I said that’s a complicated subject and peoples’s circumstances differ. But what holds true for all, is that no non-resident home owner, whatever their circumstances, is exempt from making a non-residents Income Tax return.
But in any case, when that property is eventually sold or passed on as part of an inheritance, the Spanish Tax Agency can and will check their records, which will show the property is owned by a non-resident and that no tax declarations have been received. The non residents taxes will then need to be paid, including any fines imposed, before the property can be legally transferred, or before any rebate due of monies retained against capital gains can be made. email for more information