Rental Income Guide for Non-Resident Property Owners in Spain

Understanding how rental income from your Spanish property is taxed is essential for any non-resident property owner, and the rules differ significantly depending on your country of residence and the type of rental arrangement.

This guide explains the key aspects of rental income taxation in Spain for non-resident owners, with specific attention to Belgian and Dutch property owners.

For EU/EEA residents (including Belgians and Dutch), rental income in Spain is taxed at a flat rate of 19% on net income — meaning you can deduct property-related expenses such as repairs, maintenance, insurance, community fees, IBI tax, mortgage interest, and depreciation (3% of construction value annually).

Non-EU residents are taxed at 24% on gross rental income without the ability to deduct expenses, making EU residency significantly advantageous.

Important: even when your property is not rented out, Spain imputes deemed rental income of 1.1-2% of the catastral value, taxed at 19% for EU residents.

This is declared via the Modelo 210 form.

Short-term holiday rentals in the Valencia Community require a tourist license (Licencia Turística), which involves meeting specific standards for safety equipment, furnishing, and guest registration.

Belgian owners must also declare their Spanish rental income in Belgium, but can claim a tax credit under the Belgium-Spain double taxation treaty.

Dutch owners benefit from a similar treaty arrangement.

WOW-Estates recommends working with a fiscal representative in Spain to ensure full compliance.