Spain Tourist Rental Taxation 2026
Non-Resident Guide

📋 The principle: you are taxed in Spain

If you own property in Spain and rent it out short-term (Airbnb, Booking, etc.), you must declare and pay tax on that income in Spain, whether or not you are a Spanish resident.

As a non-resident, you pay IRPF (Impuesto sobre la Renta de las Personas Físicas) — Spanish income tax — on the income generated by your property located in Spain.

The good news: rates for EU non-residents are fixed and predictable (no progressive scale), and you can deduct your actual expenses.

💶 IRPF: tax on rental income

Tax rates

Worked example:

• Gross annual income: €15,000
• Deductible expenses: €5,000
• Net taxable income: €10,000
• IRPF due (EU non-resident): €10,000 × 19% = €1,900

Filing: Modelo 210

Non-residents must declare their rental income via Modelo 210, filed quarterly with the AEAT (Agencia Tributaria — the Spanish tax authority).

Filing calendar:

• Q1 (January-March): file before 20 April
• Q2 (April-June): file before 20 July
• Q3 (July-September): file before 20 October
• Q4 (October-December): file before 20 January of the following year

Filing is done online on the AEAT website with a certificado digital or Cl@ve PIN. If you don't speak Spanish or don't know the tax system well, get help from a gestoria.

📊 Deductible expenses

You can deduct from your gross income all real, documented expenses related to your rental activity. Keep every receipt and invoice for at least 4 years.

Allowed deductions

• IBI (Impuesto sobre Bienes Inmuebles) — annual property tax
• Management fees — concierge commission, gestoria, lawyer
• Platform commissions — Airbnb (14-16%), Booking (15-18%)
• Professional cleaning — between each stay
• Maintenance and repairs — plumbing, electrics, painting, appliances
• Insurance — home insurance, owner's public liability
• Community fees — if the property is part of a residents' community
• Water, electricity, internet — if paid by the owner
• Property depreciation — flat 3% allowance on the cadastral value (no receipts needed)

Not deductible:

• Mortgage interest (unless the property is let more than 50% of the year)
• Improvement works (depreciable, not directly deductible)
• Tax fines and penalties

Flat 3% allowance

If you don't have receipts for all your expenses, you can apply a flat 3% allowance on the cadastral value of your property. It's a guaranteed minimum, even without receipts.

Example:

• Cadastral value of the property: €120,000
• Flat allowance: €120,000 × 3% = €3,600
• You can deduct €3,600 even without invoices

🧾 IVA (VAT): exemption for tourist rentals

Good news: renting out tourist accommodation without hotel-type services is exempt from VAT (IVA) in Spain.

What counts as a hotel-type service?

A hotel-type service includes:

• Daily housekeeping during the stay
• Breakfast or catering
• Regular laundry service during the stay
• 24/7 reception with on-site staff

If you rent an Airbnb with cleaning only between stays, linen provided, and occasional welcome — no VAT.

If you offer a full hotel-type service (daily housekeeping, breakfast), you fall into the hotel accommodation category and must charge VAT at 10%.

🏠 IBI: the property tax

IBI (Impuesto sobre Bienes Inmuebles) is the Spanish equivalent of council tax / property tax. It is calculated on the cadastral value of your property and set by the town hall.

The amount varies by municipality, but in Torrox and Nerja, expect roughly 0.4% to 0.8% of the cadastral value per year.

Example:

• Cadastral value: €100,000
• Torrox IBI rate: 0.6%
• Annual IBI: €600

IBI is 100% deductible from your rental income for IRPF purposes.

📄 Modelo 720: declaring foreign assets

If you are a French tax resident (or resident of another country) and own assets in Spain worth more than €50,000 in total, you must file Modelo 720 before 31 March each year.

Who is affected?

• French tax residents owning property in Spain worth over €50,000
• Spanish bank accounts over €50,000
• Securities held in Spain over €50,000

The €50,000 threshold applies per category of assets (property / accounts / securities), not to the total.

Penalties for non-compliance

Penalties for failing to file Modelo 720 are severe:

• Minimum fine: €10,000 per undeclared asset or account
• Fines of up to 150% of the undeclared asset's value in serious cases

The Court of Justice of the European Union ruled these penalties disproportionate in 2022, but Spain still applies them. Don't take the risk.

📈 Capital gains tax

If you sell your property in Spain, the capital gain is taxable in Spain. Rate for non-residents: 19% on the net gain.

Calculation:

• Sale price: €250,000
• Purchase price + acquisition costs: €200,000
• Net capital gain: €50,000
• Capital gains tax: €50,000 × 19% = €9,500

In addition to national tax, the town hall levies plusvalía municipal (a local tax on the increase in land value). The amount depends on how long you held the property and the cadastral value of the land.

💼 Inheritance tax

If you inherit a property in Spain, or if you leave your Spanish property to heirs, inheritance tax applies. Rates vary by region (Andalusia, Catalonia, etc.) and by relationship to the deceased.

In Andalusia, direct heirs (children, spouse) benefit from significant allowances, greatly reducing the tax. Consult a Spanish notary to optimise your estate planning.

✅ Our practical advice

1. Get help from a gestoria

A local gestoria will cost you €200-400/year and will save you time, money (through tax optimisation) and headaches (zero administrative stress). They handle your Modelo 210 filings, your receipts, and any AEAT follow-ups.

2. Keep ALL your receipts

Invoices, receipts, contracts, bank statements — keep everything for at least 4 years. The AEAT can audit your returns up to 4 years back. Scan and back everything up to the cloud.

3. Declare the income in your country of residence too

Even though you pay IRPF in Spain, you must also declare this income in your country of residence (France, Belgium, etc.). But thanks to the bilateral tax treaty, you don't pay twice: the Spanish tax is generally credited.

4. Pay on time

Late-payment penalties in Spain are steep: 5% immediately, then monthly interest. Don't let your quarterly filings slip.

5. Plan ahead for your VUT licence

Before renting, get your VUT licence in Torrox. Renting without a licence means fines of up to €150,000 plus non-deductible income. Check our guide to Decreto 31/2024 to learn the new VUT obligations in Andalusia. You can also estimate your net rental income after tax with our free simulator.

❓ Frequently asked questions