The changes to Spain’s IRNR non-resident property tax in 2027

If you own a holiday home or investment property in Spain, but live abroad for the majority of the year, you will typically be considered a non-resident.

As a non-resident property owner who spends less than 183 days in Spain, you are required to file a form called Modelo 210 every year. The form must be completed, whether you rent the property out for the rest of the time or it stays empty.

On this form you have to provide details of your property, declare any rental income you made or an capital gains you earned from selling the property here.

Currently, you must complete the Modelo 210 by December 31st each year. It must be filed for each type of income and each owner must file separately. This means you could be filing the forms several times just for one property.

From 2027 onwards, however, the content of this form will change, as well as the deadlines by which you need to file it by.

READ ALSO: EU issues ultimatum to Spain over non-resident property tax

What’s changing?

Deadline changes

• If you end up owing tax, you will have to file between April 1st – 20th from next year. If you want to pay by direct debit, the deadline will be April 15th.
• If your deductible expenses exceed your income made on the property and the result is 0 or a negative amount then you will have to file between January 1st-20th. This will include repair and maintenance expenses as well as interest on loans taken out to buy the property.
• If you are due a tax rebate then you will have to file after February 1st, 2027.

Examples

The Tax Agency gives the example of a property owner residing in Norway who rents out his villa in Alicante from July 2026, who chooses to have all income for the year taxed in a single amount. In this case, he will have to file Modelo 210 and declare the income from April 1st to 20th, 2027. 

In the second example, a property owner residing in Norway rents out his villa in Alicante from July 2026, opting to pay taxes on each income separately. The amount for the months of July, August and September 2026 therefore must be declared through Modelo 210 during the first 20 calendar days of October 2026, while the amounts for the months of October, November and December 2026 will be declared through the new Modelo 210 in the new period from April 1st to the 20th, 2027. 

READ ALSO – IRNR: What you need to know about Spain’s non-resident tax

New Modelo 210

Not only will there be new deadlines from 2027, but there will be a new version of the Modelo 210 form as well.

Basically, the form will now ask for extra property information including:

• How many days the property was rented out, how many days were available for you use and what percentage of the property you own.
• If the property has a cadastral reference and what that is so the Agencia Tributaria can cross reference it.
• Expenses will no longer be declared as a single amount, you must split them up into categories to show how much you paid for repairs, how much for IBI tax, on community fees etc.

Remember that currently if you’re a non-resident who resides outside the EU, however, you cannot deduct any rental expenses. If you live in the EU or EEA, you can.

Changes to dividends 

The final lot of changes have to do with dividends. If choose to group dividends from the same company in your Modelo 210, you will need to complete a new dividend breakdown which clearly states which amount corresponds to each payment within the tax year. 

Our journalists at The Local are not tax professionals, if you are in any doubt about what you need to file and when the new deadlines are, it’s important to consult an expert or a gestor.