Who has to file
Anyone who owns urban property in Spain without being tax resident there falls within the scope of the Impuesto sobre la Renta de no Residentes, the Spanish non-resident income tax. The obligation does not depend on receiving any income.
Where the property is kept at the owner's disposal, Spanish law attributes a notional income, known as renta imputada, calculated on the cadastral value: as a general rule 1.1 per cent where that value has been reviewed within the previous ten years, and 2 per cent where it has not. Where the property is let, the actual rental income is declared. Where it is sold, the capital gain is dealt with separately and the buyer's 3 per cent withholding comes into play.
The rate is 19 per cent for residents of the European Union, Iceland and Norway, and 24 per cent for everyone else. Only the former may deduct expenses against rental income, which materially changes the outcome for a mortgaged property with community charges and running costs.
Filing is individual and property by property. A married couple owning a villa in equal shares files two returns, not one.
The new deadlines from 2026
Orden HAC/623/2026 of 12 June has changed both the content of the form and the filing calendar for property income. The full picture matters here, because the old and the new regimes run side by side through 2026 and 2027.
Imputed income for 2025 keeps its original window, from 1 January to 31 December 2026. Imputed income for 2026 is filed between 1 April and 31 December 2027.
For rental income with tax due, quarterly filing gives way to a single annual return, filed within the first twenty calendar days of April of the year following accrual. Income accrued between April and September 2026 keeps the old quarterly deadlines of July and October 2026. Income accrued in October, November and December 2026 already falls under the new window, from 1 to 20 April 2027.
The form itself now carries additional schedules for deductible property expenses and for dividends, together with new information boxes. Filing on the wrong version of the form is grounds for rejection.
What the service covers
- Assessment of the obligation and of the applicable regime, including confirmation of tax residence and of the double tax treaty in play.
- Calculation of imputed income or of net rental income, with a review of the cadastral value, the date of its last revision and the registered ownership.
- Electronic filing of the Modelo 210 for each owner and each property, within the deadline, with the receipt kept on file.
- Voluntary regularisation of unfiled years, quantifying the late filing surcharge under article 27 of the Ley General Tributaria, which is considerably lighter than the penalty applied once the tax authority has opened proceedings.
- Handling of information requests and audits, and representation before the Agencia Tributaria.
What we need from you
The IBI receipt or cadastral reference, the purchase deed, the NIE of each owner, a certificate of tax residence where relevant and, for let properties, the tenancy agreement and expense records for the year.
With that in hand we can complete the engagement without further involvement on your part.
Why use a firm based on the island
Most of the errors we correct are not arithmetical. They come from a wrong premise: a cadastral value treated as reviewed when it was not, ownership that changed on an inheritance and was never updated, a British owner who continued deducting expenses after the United Kingdom left the European Union, or a house let for part of the season and declared as if it had been at the owner's disposal all year.
We work from Palma de Mallorca and Manacor, in English, German and Spanish, with a fixed fee agreed before the engagement begins. We also review, on a coordinated basis, the same client's position under Spanish wealth tax where the value of their Balearic assets makes it relevant.
Frequently asked questions
Do I have to file if my property in Mallorca stays empty?
Yes. Having the property available to you generates taxable imputed income, whether or not you earn anything from it.
What if I have not filed for several years?
You can put it right voluntarily. Filing late without a prior request from the tax authority attracts a surcharge rather than a penalty, and the amount depends on how much time has passed. Acting before the authority contacts you makes a substantial difference.
Does selling change anything?
Yes. The buyer must withhold 3 per cent of the price and pay it over using form 211, and the seller reports the capital gain on a separate Modelo 210 with its own deadline. Where the withholding exceeds the tax due, a refund can be claimed.
Can I deduct my mortgage?
Only residents of the European Union, Iceland and Norway may deduct expenses, and only against rental income. No deduction is available against imputed income.