What is the Modelo 210 tax in Spain?

Modelo 210 is the official Spanish form non-resident property owners must file with AEAT to declare income from Spanish property: imputed income, rental income, capital gains on sales, and the 3% withholding refund.

What is the non-resident tax rate in Spain for 2026?

EU and EEA residents pay 19% and may deduct rental expenses. Non-EU residents (including the UK after Brexit) pay 24% and cannot deduct expenses.

Can I file Modelo 210 online from another country?

Yes. SpainTaxForm generates the official .210 file accepted by AEAT and lets you file from any country without travelling to Spain or hiring a local lawyer.

How much does it cost to file Modelo 210 with SpainTaxForm?

Imputed income starts at €30, rental income from €80, and capital gains or 3% withholding refunds at €160.

Coast vs Inland Spain 2026: The Great Price…

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In-depth analysis of how prices are evolving between coastal and inland Spain. Why the Costa Blanca keeps breaking records, how Elda and other inland Alicante towns are absorbing families priced out of Madrid, Barcelona and Valencia, and what this trend shift means for non-resident investors.

In 2026 the Spanish property market is showing one of the widest gaps in its recent history: while the Costa Blanca, the Balearics and the Costa del Sol keep breaking records driven by foreign demand, thousands of Spanish families pushed out of Madrid, Barcelona and Valencia are relocating to inland towns such as Elda, Petrer, Villena, Yecla or Almansa, sending prices soaring in areas that had been flat for a decade. This guide analyses the scale, causes and tax consequences of the shift.

1. The 2026 market snapshot

According to the Spanish Housing Price Index (INE), average home prices have risen for 11 consecutive quarters, closing 2025 with a +8.4% year-on-year increase — the fastest pace since the 2007 bubble. The Ministry of Transport and Tinsa confirm the rise is extremely polarised by geography.

Mediterranean coast and islands: +9% to +13%.
Madrid and Barcelona metro areas: +7% to +10%, with all-time-high €/m².
Inland provincial capitals (Valladolid, Zaragoza, Burgos, Albacete): +4% to +6%.
Well-connected smaller inland towns: +10% to +18%, from very low starting points.

The paradox: the most expensive areas keep rising, but inland towns receiving "real-estate refugees" rise even faster in percentage terms.

2. Costa Blanca: the epicentre of international demand

The province of Alicante concentrates the largest share of foreign-buyer purchases in Spain. Notaries and Land Registrars report that more than 43% of 2025 sales in Alicante were signed by non-residents, versus a 14.7% national average.

Average prices in Costa Blanca areas (end of 2025, €/m²)

Jávea / Xàbia: €3,450/m² (+11.2%)
Moraira – Teulada: €3,700/m² (+12.4%)
Altea: €3,250/m² (+10.1%)
Calpe: €2,890/m² (+9.8%)
Benidorm: €2,640/m² (+8.7%)
Dénia: €2,510/m² (+9.3%)
Alicante city: €2,280/m² (+8.4%)
Torrevieja / Orihuela Costa: €1,980/m² (+9.0%)
Guardamar / La Marina: €1,840/m² (+8.2%)

British buyers lead (≈ 21% of provincial sales), followed by Germans, Dutch, Belgians, Norwegians, Swedes and a growing share of Polish and French. New-build stock on the seafront is virtually exhausted: PROVIA estimates less than 18 months of marketable stock left in the Marina Alta and Marina Baixa strip.

3. Why the coast has surged: five structural drivers

Cash-rich foreign demand. Over 65% of non-resident purchases on the Costa Blanca close without a mortgage, insulating the market from rate hikes.
Remote work and digital nomads. The Digital Nomad Visa has attracted northern European and US professionals paying European prices on global salaries.
Scarce buildable land. Urban-planning rules and environmental pressure have capped land near the sea.
Construction-cost inflation. New-build costs are up more than 28% since 2021 (cement, steel, labour).
Relative tax appeal. The non-resident income tax (Modelo 210) in Valencia, together with effective absence of Wealth Tax for properly-planned EU residents, keeps Spain attractive vs France or the Netherlands.

4. Madrid, Barcelona and Valencia: silent expulsion of residents

2025 average purchase prices:

Madrid city: €4,650/m² (+9.1%), with central districts above €8,000/m².
Barcelona: €4,820/m² (+8.6%).
Valencia city: €2,690/m² (+12.7%), the fastest among large cities.

Rents follow the same path: average €21/m²/month in Madrid and €23/m²/month in Barcelona. For a median-income family, housing effort exceeds 45% of income, well above the 30% benchmark recommended by the Bank of Spain.

The result: an unprecedented internal migration toward mid-sized towns well connected by high-speed rail or motorway, where a decent home can still be bought for under €120,000.

5. The Elda – Petrer case: the new inland Alicante hotspot

The Elda-Petrer conurbation, in the Vinalopó Valley, 35 minutes from Alicante via the A-31 and connected by commuter rail and high-speed rail (Villena AV station 20 km away), has gone from a flat market for a decade to historical increases:

Average price Elda: €950/m² in 2025 (+14.8% y-o-y; +32% since 2022).
Average price Petrer: €1,080/m² (+13.6%).
Average time to sell: down from 9 months (2022) to 2.5 months (2025).
Non-local buyers: 38% come from Alicante city, Madrid or Murcia.

Elda's rise combines supply and demand:

Ample stock and prices still below regional average.
Consolidated urban services (district hospital, schools, malls).
Industrial base (footwear, logistics) sustaining local employment.
Direct link to the Costa Blanca: many buy in Elda as primary residence while keeping a second home on the coast.
Inflow of remote workers and European retirees looking for savings vs Jávea or Altea.

The same pattern is unfolding in Villena, Sax, Monóvar, Novelda, Aspe, Crevillente, Yecla (Murcia) and Almansa (Albacete), all on the Vinalopó-Almansa corridor.

6. Other inland hotspots rising in 2026

Henares corridor (Guadalajara, Azuqueca, Cabanillas): +12% on Madrid spillover.
Toledo and Talavera: +9% thanks to AVE and remote work.
Segovia, Ávila and Cuenca: +7% to +10%, historic centres recovering.
Lleida, inland Tarragona and Reus: +8% from Barcelona pressure.
Genil basin (Granada, Loja, Antequera): +10% on Málaga spillover.

7. A genuine trend shift

For the first time since 2014, INE shows that towns under 50,000 inhabitants are now rising in price faster than capitals in relative terms. Tinsa's IMIE for Large Markets confirms the "flight effect" is reshaping the map: the gap between capital and periphery is narrowing — not because capitals fall, but because the inland rises faster.

The Bank of Spain warned in its 2025 Annual Report that this dynamic may trigger new affordability tensions in mid-sized towns unprepared for the demand, especially in rentals.

8. What it means for non-resident owners

If you buy on the Costa Blanca or inland Alicante, keep Spanish taxation in mind:

Modelo 210 — Imputed income: mandatory even without renting. 1.1% or 2% of cadastral value, taxed at 19% (EU/EEA) or 24% (rest). Deadline: 31 December of the following year.
Modelo 210 — Rental: quarterly filings (1–20 April, July, October, January). EU/EEA residents can deduct IBI, community fees, interest, depreciation, utilities and insurance.
Modelo 210 — Capital gain: on sale, 4-month deadline from deed. Buyer withholds 3% (Modelo 211) deductible from the liability.
IBI and waste fees: set up direct debit on a Spanish bank account.
Municipal plusvalía: 30 working days from sale.

Proper planning can save thousands of euros, especially through pre-1995 abatement coefficients or optimised rental deductions.

9. Outlook 2026–2028

Consensus forecasts (BBVA Research, CaixaBank Research, Tinsa, Idealista) point to:

Continued coastal rises, moderating toward +5% to +7% a year from 2027.
Acceleration of well-connected inland towns, with potential +10% to +15% cumulative in 2026–2027 in places like Elda, Villena or Guadalajara.
Tighter rules on tourist rentals, strengthening long-term residential renting.
Sustained foreign demand, with growing weight of Dutch, Polish and US buyers.

10. Conclusion

Spain 2026 shows two real-estate speeds converging for the first time in a decade: the coast still pulls, but well-connected inland towns are the real opportunity. For the foreign buyer, the Costa Blanca demands quick decisions, while inland Alicante (with Elda as the textbook case) offers real value with upside. In both cases, complying with Modelo 210 and the rest of IRNR duties is essential to protect the investment.

References and sources

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Coast vs Inland Spain 2026: The Great Price Gap and the Rise of Elda and the Costa Blanca