Non-resident homeowners in Spain: The tax changes you can’t ignore

For thousands of people who own a holiday home in Spain but live abroad, 2025 brought a new wave of tax rules, registration requirements and legal debates that could reshape how foreign-owned properties are taxed.

And while the headlines can sometimes make it sound overwhelming, the reality is more nuanced: your tax rate is not suddenly going up, but the way your tax is calculated and reported may soon change, particularly if you rent your property or live outside the EU.

With British, American, Latin American and other overseas owners still holding a significant share of Spanish coastal properties, these changes are expected to have real impact – not just on paperwork, but potentially on how much tax is owed, and who may soon be allowed to claim refunds.

Owning a Property in Spain, but Not Living Here? Modelo 210 Is Still the Key

If you live outside Spain and you own a property here – a small flat in Valencia, a villa in Marbella, a townhouse inherited from family in Asturias – you are classed as a non-resident property owner, even if you visit regularly.

And non-residents must file a specific tax form known as the Modelo 210.

There are three main scenarios:

This applies whether you are British, Irish, German, Norwegian, Moroccan, American or otherwise, and it applies even if the house sits empty most of the year.

A frequent misunderstanding is:

“If I don’t rent it, I don’t have to declare anything.”
But yes – you do.
That’s exactly what the imputed income declaration covers.

What’s Changing in 2025: The Quiet But Important Shift in the Tax Base

The tax rate itself does not change:

• EU/EEA residents: 19 per cent
• Non-EU residents (including UK): 24 per cent

What does change in 2025 is the percentage applied to the property’s cadastral value, known as the imputed income percentage.

This percentage depends on when the cadastral value was last updated in the municipality where the property sits:

• 1.1 per cent if the cadastral value was updated within the last 10 years
• 2 per cent if not updated in more than 10 years

In practice, this means your tax could go up or down depending on your town, because several regions and municipalities have recently undergone valuation reviews.

This is one of those details people tend to forget about until the tax bill looks different from last year.

A Major Shift for Holiday Rentals: The New Mandatory NRA Registry

From July 1 2025, Spain began phasing in a Single Rental Registry for all tourist and short-stay accommodation.

This means:

• Every short-term rental property must have a Rental Registration Number (NRA)
• Even if it already has a tourist licence
• Platforms like Airbnb, Booking and Vrbo will be required to remove listings that don’t display a valid NRA

This change is not just bureaucratic.
It is aimed at:

• Tackling illegal rentals
• Improving transparency in tourist zones
• Preventing tax evasion in the holiday rental market

For property owners who rent occasionally ‘just to cover costs,’ this may feel like an extra hoop – but failing to register can result in:

• Hefty fines
• Your listing disappearing from rental platforms overnight

The court case that could change everything for Non-EU owners

This is the part where many British and Latin American owners are paying close attention.

Historically, non-EU property owners who rent out their home in Spain have not been allowed to deduct rental expenses, while EU owners can deduct:

• Repairs
• Utilities
• Property management fees
• Community fees
• Insurance
• Local taxes

However, in mid-2025, Spain’s National Court ruled that denying deductions to non-EU owners may violate EU free movement rules.

The case is now under appeal, so nothing changes yet, but if the ruling is upheld:

• Non-EU landlords could soon deduct expenses
• They may also be able to claim refunds for past years, provided they kept receipts

This is why many tax advisers are now telling clients: “Save every invoice. Don’t throw anything away.”

If the ruling becomes final, those receipts could be worth hundreds or even thousands of euros.

Meanwhile, the EU Is Challenging Spain’s System Overall

In June 2025, the European Commission opened proceedings against Spain over the way imputed income is charged to non-resident owners, arguing it may discourage cross-border property ownership.

Spain has several months to respond. If the case goes to the European Court of Justice, the ruling could take years.

So for now:
Your filing obligations remain the same.
But big structural change is now officially on the table.

So What Should Non-Residents Do Right Now?

• Check the cadastral revision date of your property to know whether you’ll be taxed at 1.1 per cent or 2 per cent
• If you rent short-term, apply early for the NRA rental registration number
• Keep receipts for all rental expenses — deductions for non-EU owners may soon become allowed
• File Modelo 210 by the proper deadlines to avoid fines

Owning a home in Spain while living abroad can be wonderfully rewarding – but it does come with paperwork that’s not always intuitive.
2026 won’t necessarily make things harder, but it will require owners to stay aware and organised.

Because one thing in Spain never changes:
The tax office does not forget.

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