Introduction
What is the IRNR, and who must pay it?
The Impuesto sobre la Renta de no Residentes (IRNR) is the Spanish income tax for people and companies who do not live in Spain but own property or earn income there. If you own a home in Ibiza but live in the Netherlands, the UK, Germany or anywhere else, you must file an IRNR return every year, whether you rent the property out or use it only yourself. The rate is 19% for EU and EEA residents (on net income, with expenses deductible) and 24% for non-EU residents (on gross income, no deductions); for own use, tax is charged on an imputed income of 1.1 to 2% of the cadastral value per year.
Many foreign owners do not realise the IRNR also applies to own use. Even if you never rent the property and only stay there yourself, you owe tax each year on a notional imputed income.
Resident or non-resident?
How to determine your tax status
You are a Spanish tax resident if either of these applies:
- You spend more than 183 days per calendar year in Spain.
- Your main economic interests (business, investments) are based in Spain.
If you mainly live abroad, you are a non-resident for Spanish tax and your Ibiza property falls under the IRNR regime, even for own use, even if you only spend a few weeks there a year.
| Situation | Tax regime | Filing |
|---|---|---|
| More than 183 days/year in Spain | IRPF (resident) | Annual return as a Spanish taxpayer |
| Under 183 days, EU/EEA resident | IRNR 19% | Modelo 210, annually |
| Under 183 days, non-EU resident | IRNR 24% | Modelo 210, annually |
Own use, no rental
Tax on own use of the property
If you do not rent your Ibiza property and only use it yourself, you still pay IRNR. The tax authority imputes a notional rental income, as if you were letting the property to yourself.
| Situation | Imputed percentage | Notes |
|---|---|---|
| Cadastral value revised after 1 Jan 1994 | 1.1% of cadastral value | Most common in Ibiza |
| Cadastral value not revised since 1994 | 2% of cadastral value | Older registrations |
The cadastral value is usually well below market value. On a villa worth €1,000,000 it might be €150,000 to €250,000, giving an annual IRNR bill of about €330 to €550 for EU residents. That is manageable, but missing it for several years can lead to significant penalties.
With co-ownership, each owner files separately for their share. If you use the property part of the year and rent it the rest, you split the calculation: IRNR on the actual rental income for the let period, and imputed income for the own-use period.
Rental income
Tax on rental income
If you let your property, short-term to tourists (with an ETV licence) or long-term, you pay IRNR on the rental income. The rate, and whether expenses are deductible, depend on where you live.
| Situation | Rate | Deductible expenses? |
|---|---|---|
| EU/EEA resident (e.g. Netherlands, Germany) | 19% on net income | Yes, see list below |
| Non-EU resident (e.g. UK post-Brexit) | 24% on gross income | No deductions allowed |
Deductible expenses for EU and EEA residents:
- Mortgage interest (proportional to the rental period).
- Property tax (IBI).
- Community fees and urbanisation costs.
- Maintenance and repair costs.
- Insurance premiums (buildings and liability).
- Management fees for estate agents and property managers.
- Cleaning costs between tenants.
- Building depreciation (3% of the construction value per year).
UK buyers should note that, post-Brexit, the UK is no longer in the EU or EEA. British non-residents now pay IRNR at 24% on gross rental income with no deductions, a noticeably worse position than EU residents.
Wealth tax
Impuesto sobre el Patrimonio, the Spanish wealth tax
On top of IRNR, non-residents with property in Spain may also owe the Spanish wealth tax (Impuesto sobre el Patrimonio), an annual tax on your net Spanish assets.
Non-residents get the same general exemption as residents: the first €700,000 of net Spanish assets is tax-free. Only the amount above €700,000 (the taxable base) is taxed, on the progressive scale below.
| Taxable base above the €700,000 exemption | Rate |
|---|---|
| €0 – €167,129 | 0.2% |
| €167,129 – €334,253 | 0.3% |
| €334,253 – €668,500 | 0.5% |
| €668,500 – €1,336,999 | 0.9% |
| €1,336,999 – €2,673,999 | 1.3% |
| €2,673,999 – €5,347,998 | 1.7% |
| €5,347,998 – €10,695,996 | 2.1% |
| Above €10,695,996 | 3.5% |
Wealth tax is calculated on the highest of the purchase price, the equivalent value or the cadastral value. An outstanding mortgage is deductible from taxable wealth. You file via Modelo 714, usually alongside the annual income-tax campaign, before 30 June.
Filing Modelo 210
How to file your IRNR return, step by step
- Gather the information. The cadastral value (shown on your IBI bill), your ownership share, annual rental income if any, and evidence of deductible expenses.
- Work out the tax base. Own use: 1.1% or 2% × cadastral value × ownership share × the share of the year in own use. Rental: net rental income (EU resident) or gross rental income (non-EU resident).
- Complete Modelo 210. Through the Agencia Tributaria portal (sede.agenciatributaria.gob.es). You need a digital certificate or Cl@ve access, or you authorise a tax adviser to file for you, which most non-residents do.
- Make the payment. By bank transfer to the Spanish tax authority. Rental income is due 1 to 20 April of the year after the tax year (income earned in 2025 is due 1 to 20 April 2026). Own-use imputed income is due by 31 December of the following year.
- Keep records for 5 years. Retain every return and payment confirmation for at least five years; the tax authority can look back up to four years in an audit.
Deadlines 2026
All the tax deadlines at a glance
| Tax / return | Form | Deadline |
|---|---|---|
| IRNR own use (full year 2025) | Modelo 210 | 31 December 2026 |
| IRNR rental income (full year 2025) | Modelo 210 | 1–20 April 2026 |
| Wealth tax 2025 | Modelo 714 | 30 June 2026 |
| Tourist tax IEET (quarterly) | Modelo 700 | 20th of the month after each quarter |
Since accrual year 2024, rental income is declared once a year rather than quarterly; the old quarterly deadlines (20 April, 20 July, 20 October, 20 January) no longer apply.
If you do not file
What are the risks of not filing?
The Spanish tax authority (Agencia Tributaria) actively checks foreign owners. If undeclared IRNR comes to light, the consequences can be serious:
- Back taxes for up to four years, covering every missed period.
- Interest on the amount owed, 4.0625% a year (the 2026 rate).
- A surcharge of 50 to 150% of the unpaid tax for deliberate evasion.
- A block at the notary on a future sale, as unpaid tax debts surface at completion.
Need help with your Spanish tax return as an owner?
We work with trusted tax advisers in Ibiza who specialise in foreign owners. They handle your IRNR and wealth-tax filings end to end, in your language, correctly and on time.