Spanish imputed income: working out the tax on a property you don't let

If your flat in Spain is not let out, you receive nothing… and yet you owe tax. That is the principle of imputed income (renta imputada): the Spanish tax authority considers that having a home at your disposal is a benefit, and it taxes it on a flat-rate basis. This guide shows you how to calculate it step by step, with real examples.

Fiscasa is a private service, independent of the Agencia Tributaria. The examples below are illustrative.

How imputed income works

Which properties are concerned?

Imputed income applies to any urban property owned by a non-resident that is not let and is not used for a business activity:

• the holiday home you use on your holidays;
• a home lent free of charge to your children or friends;
• an empty flat waiting to be sold or let;
• ancillary units with their own cadastral reference: garage, parking space, storeroom (trastero).

Undeveloped plots (solares) and rural properties are not concerned.

Why are no expenses deductible?

Imputed income is a flat-rate figure: there is no actual income and no expense to deduct. The IBI, community fees, insurance or mortgage interest do not reduce the tax on a property that is not let. They only become deductible, pro rata, for periods when the property is let — and only for EU/EEA residents (see letting a property in Spain as a non-resident).

The formula

Taxable base = cadastral value × rate (1.1% or 2%) × ownership share × days / number of days in the year

Tax = taxable base × 19% (EU/EEA residents, e.g. Ireland) or 24% (other countries, including the UK).

Step 1: find the cadastral value

The cadastral value (valor catastral) is shown on the IBI bill for the year concerned. Make sure you use the value for the year being declared: for 2025 tax, it is the 2025 cadastral value. It can change every year because of update coefficients.

Be careful not to confuse:

• valor catastral (total cadastral value): this is the one you need;
• valor catastral suelo (land portion) and valor catastral construcción (building portion): these are sub-totals;
• base liquidable: the base for calculating the IBI after reductions, not to be used for the IRNR.

Step 2: choose between 1.1% and 2%

The rate depends on the cadastral history of the municipality, not on your particular property:

• 1.1% if cadastral values were revised, modified or set by a general collective valuation procedure that came into force on or after 1 January 2012;
• 2% in all other cases.

The annual update coefficients that sometimes appear on the IBI bill do not count as a general revision. A municipality can see its values rise every year through coefficients while staying at the 2% rate. This is one of the most common mistakes, in both directions.

If the property has no cadastral value, or it had not been notified to you by the date the tax accrues, the base is 1.1% of 50% of the purchase price (or of the value used by the tax authority for other taxes, if higher).

Step 3: apply your ownership share

Each co-owner declares their share. If the title deed says you own 50% of the property, your base is half the total base. A married couple usually own 50/50, but a purchase may provide for 70/30, etc. Check the escritura.

Step 4: apply the day count

Imputed income only runs for the period during which you are the owner and the property is not let. The tax accrues on 31 December, but it is apportioned:

• in the year of purchase: from the purchase date to 31 December;
• in the year of sale: from 1 January to the sale date;
• in the case of partial letting: only the days not let.

Worked examples

The examples use the 19% rate (EU/EEA residents, e.g. Irish residents); the figure for a UK resident at 24% is given each time.

Example 1: a sole owner, revised municipality

John owns a flat in Benidorm on his own. 2025 cadastral value: €82,400. Municipality revised after 2012: rate of 1.1%.

• Base: 82,400 × 1.1% = €906.40
• Tax: 906.40 × 19% = €172.22 (UK resident: €217.54)

Example 2: a couple, unrevised municipality

Sophie and Karim own a house 50/50 in a municipality whose last general revision dates from 2006. Cadastral value: €61,000. Rate of 2%.

• Total base: 61,000 × 2% = €1,220
• Each owner's base: €610
• Tax for each: 610 × 19% = €115.90 (UK residents: €146.40)
• Two returns of €115.90, i.e. €231.80 for the household (UK residents: €292.80).

Example 3: purchase during the year

Claire buys a studio on 1 April 2025 (cadastral value €40,000, rate 1.1%). She owns it for 275 days in 2025.

• Annual base: 40,000 × 1.1% = €440
• Pro rata: 440 × 275 / 365 = €331.51
• Tax: 331.51 × 19% = €62.99 (UK resident: €79.56)

For 2024, a leap year, the pro rata is calculated over 366 days.

Example 4: flat + garage

Luke owns a flat (cadastral value €70,000) and a garage in the same building with its own cadastral reference (cadastral value €6,000). Rate of 2%.

• Flat: 70,000 × 2% × 19% = €266.00
• Garage: 6,000 × 2% × 19% = €22.80
• Total: €288.80 (UK resident: €336.00 + €28.80 = €364.80)

The garage is often forgotten. It is calculated separately and, in practice, has its own return. If the garage shares the home's cadastral reference, it is already included in its value.

Example 5: let in summer, used the rest of the time

Nadia lets her flat for 60 days in July–August and uses it or leaves it empty for the other 305 days. Cadastral value: €90,000, rate 1.1%.

• Imputed income: 90,000 × 1.1% × 305 / 365 = €827.26, giving tax of €157.18 (UK resident: €198.54)
• The rent for the 60 days is declared separately as rental income, with the expenses for that period (deductible for EU/EEA residents only).

Mistakes to avoid

• Using an old cadastral value: each year has its own.
• Applying 1.1% because the value has gone up: only a general revision counts.
• Declaring 100% of the property for each spouse: each declares their own share.
• Forgetting the garage or storeroom when they have their own cadastral reference.
• Paying without filing, or paying the IBI and thinking you are up to date.
• Using 19% when you live in the UK: since Brexit, UK residents pay 24%.

For the full list, see common Modelo 210 mistakes.

When to file?

• 2025 imputed income: by 31 December 2026 (direct debit until 23 December 2026).
• 2026 imputed income: from 1 April to 31 December 2027, on the new form.

For details of the changes, read what's new in 2027.

Get your figure

The Fiscasa calculator applies this formula using your cadastral value, your municipality and your ownership share. If you hand the return over to us, a person checks the rate that applies in your municipality before anything is filed. See our household pricing.

FAQ

Is imputed income due if I didn't use the property all year?

Yes. What matters is that the property remains available to you and is not let. Not having gone there makes no difference.

I lend my flat free of charge to my daughter. Is that a letting?

No. Without rent there is no letting: imputed income applies. If rent is paid, however modest, it is a letting and different rules apply.

How do I know whether my municipality applies 1.1%?

You need to know the year in which the municipality's last general cadastral revision (ponencia de valores total) came into force. This information is on the Catastro portal. The Fiscasa calculator and our team check it for you.

Can I deduct the IBI I pay?

Not for the period when the property is not let. The IBI is only deductible pro rata to the days let, and only for EU/EEA residents.

I applied 2% when my municipality was at 1.1%. Can I get the difference back?

Yes, for years that are not time-barred (four years), a request for rectification lets you recover the overpayment. The amount is often small, but it can add up over several years.

Is the 1.1% rate going to change?

Real Decreto-ley 29/2026 extended the current rule for the years 2023 to 2026 and announces changes to imputation from 2027. We will update this guide as soon as the details are known.