If you own a home in Orihuela Costa, Torrevieja or any part of the Costa Blanca, it is very likely that you have considered renting it on platforms such as Airbnb or Booking.com. It is an excellent way to monetise your investment.
However, this is where the big doubt arises: how do I declare that income in Spain if I am a non-resident?
There is a mistaken belief that, by not living here, it is not necessary to declare. This is a serious mistake. The Tax Agency (Hacienda) has agreements with Airbnb and Booking (through Model 179) and knows exactly who is renting and how much they are earning.
As tax advisors specialising in taxation of non-residents, this is one of the most critical inquiries we receive. Imsmanagement of your taxes can lead to serious inspections and sanctions.
In this guide we explain, step by step, how to legally declare your tourist rental income in Spain as a non-resident.
1. The Key: The Tax (IRNR) and the Form (Model 210)
Forget about the “Tax Declaration” (IRPF) made by residents. Your tax is the IRNR (Non-Resident Income Tax).
Any income you generate in Spanish territory, such as that of a rental in Orihuela Costa, must be taxed here through Form 210.
And here comes the first important detail: from 2024 the Model 210 is presented once a year, until January 20 of the following year.
Watch out, until 2023 it was presented quarterly.
- First Quarter (En-Mar): It is presented until April 20.
- Second Quarter (Apr-Jun): It is presented until July 20.
- Third Quarter (Jul-Sep): It is presented until October 20.
- Fourth Quarter (Oct-Dec): It is presented until January 20.
| Fiscal situation | Previous Presentation (Until 2023) | Current Presentation (Since 2024) |
| Rentals (Model 210) | Quarterly (if income was obtained) | Annual |
| Imputed Income (Vanty Days) | Annual | Annual |
2. The Million Dollar Question: EU Resident or Outside the EU?
This is the most important point and the one that determines how much you are going to pay. Since Brexit, we have seen how this distinction has drastically affected thousands of British owners.
The law differentiates if your tax residence is in the European Union (EU) or in a country of the European Economic Area (EEA), or if it is outside.
Case A: You are a resident in the EU or EEA (E.g. Germany, Belgium, France, Ireland)
You’re in luck. You can deduct a large amount of expenses proportional to the time that the house has been rented.
- What expenses can you deduct? Mortgage interest, IBI, community of owners, cleaning expenses, internet bills, electricity and water, advertising, Airbnb/Booking commissions, repair expenses, painting, insurance, amortisation, etc.
- It is very important to know that you can only deduct expenses for the days you rent.
- How much do you pay? You pay 19% on the net profit (Income – Deductible Expenses).
Case B: You are a resident outside the EU/EEA (E.g. United Kingdom, USA, Canada)
This is the most unfavourable situation, and the one that affects all post-Brexit British, United States, Canadians, Latin America, etc.
- What expenses can you deduct? NONE. The deduction of any expenses is not allowed.
- How much do you pay? You pay 24% on the total gross income.
As you can see, the difference is abysmal. A German and a British owner with the same Airbnb income in Orihuela Costa will pay radically different tax amounts.
3. The Most Common Mistake: What happens on the days that you are not rented?
This is where the Treasury “camps” most non-residents.
Many think: “I haven’t rented this year, so I don’t present anything.” Error!
Spanish law says that a non-resident must pay taxes for their property even if it is empty. This tax is called “imputed income”.
Therefore, your tax liability is divided into two:
- For the days it is rented: You present the form 210 annually (with 19% or 24%, as we saw before). until January 20 of the following year.
- For the days that it is empty (at your disposal): You must present another form 210 also on an annual basis (usually during the following year) paying the “imputed income” until December 31.
If you don’t rent it all year round, you only present the annual imputed rent. If you rent it all year round, you only submit a declaration. Most people do both.
Summary: Is it difficult to declare Airbnb as a non-resident?
Yes, it is. It requires an annual control, understanding which expenses are deductible (only if you are from the EU), and not forgetting the annual declaration for empty days.
Trying to do it on your own without being a tax expert is risky. The penalties for not presenting Form 210 or doing it incorrectly are high, and the Treasury is intensifying inspections on tourist rentals.
Extra: an unknown error, but very important
Did you know that if you don’t live in Spain, when you open an account in a Spanish bank they open the account with your passport or your non-resident foreign ID and they don’t open it with your NIE?
We have had the case of many customers that we have domiciled the non-resident tax in their account and the bank has not paid it because the customer’s NIE was not informed in the account and the bank has rejected the direct debit because it does not coincide with the data of the account holder. It is a very common mistake and the bank does not want to be held responsible.
Always tell your Bank to report NIE in the account.
Do you need help with your rental declarations in Orihuela Costa?
At Asesoría Orihuela Costa, we are economists and tax advisors who are experts in the management of the Model 210 for non-resident owners. We take care of the whole process, we optimise your declarations so that you pay only the right amount and we give you the peace of mind of knowing that you strictly comply with the Treasury.
Don’t let incorrect tax management ruin the profitability of your investment. Contact us today and make sure your Airbnb rentals are in good hands.
