Do EU residents have to pay Spanish non-resident tax?

Free movement does not mean free of tax

EU membership harmonises a lot, but not the taxation of property income. A home in Spain produces Spanish income, and Spain keeps the right to tax it even when the owner lives in Cork, Lyon or Rotterdam. Modelo 210 therefore applies to every owner who is tax resident outside Spain, wherever that may be.

What changes inside the EU and the wider EEA (which adds Norway, Iceland and Liechtenstein) is the treatment, not the obligation.

What EU and EEA residents gain

• A lower rate. Imputed income and rent are taxed at 19% rather than 24%.
• Deductible expenses on lettings. If you rent the home out, you may deduct expenses such as community fees, IBI, insurance or interest, in proportion to the days let.
• No compulsory fiscal representative. You can deal with the tax office yourself or through anyone you choose.

What you do not gain is any allowance on imputed income. A home that is not rented is taxed on the notional figure with no deductions, at 19% for an Irish resident just as at 24% for a British one.

A quick comparison

Two sisters each own half of a flat in Fuengirola with a cadastral value of €120,000. The town applies 2%, so each half carries €1,200 of imputed income. The sister living in Dublin pays €228 (19%). The sister living in Manchester pays €288 (24%), because the UK left the EU rate behind with Brexit. Same flat, same share, €60 apart.

And at home?

Your country of residence may also want to hear about the Spanish property. Most double tax treaties let you credit the Spanish tax or exempt the income, so you are not taxed twice on the same euro. Irish and UK residents usually report Spanish income on their home return and claim credit; US citizens should also check their own reporting duties, such as FBAR for foreign accounts, with an adviser. See will I be taxed twice and the rate page.