Tax Guide for German Property Owners in Spain — Modelo 210, DTA, and Anlage AUS

German buyers represent 7.6% of all foreign property purchases in Spain, making Germany the second most active foreign buyer nationality. If you are German and own property in Spain, you have specific tax obligations in both countries.

Tax Obligations in Spain

As an EU citizen, German property owners benefit from favourable tax conditions:

• Reduced tax rate of 19% (vs. 24% for non-EU)
• Expense deductions on rental income
• Filing via Modelo 210

Imputed income

Empty properties: 1.1% of cadastral value (if revised after 2012) or 2%, taxed at 19%.

Rental income

Quarterly filing at 19% on net income.

Capital gains

Buyer withholds 3%. Seller pays 19% on net gain.

German-Spanish Double Taxation Agreement

The DBA (Doppelbesteuerungsabkommen) signed on 3 February 2011 regulates bilateral taxation. Germany applies the Progressionsvorbehalt method for Spanish property income — this income is exempt from German tax but is taken into account to determine the marginal tax rate applied to other German income.

German Tax Return: Anlage AUS

Spanish income must be declared on the German income tax return using Anlage AUS (Foreign Income). The Progressionsvorbehalt method means the Spanish income is not taxed in Germany but increases the marginal rate applied to your other income.

The German Market in Spain: Mallorca and Beyond

German buyers represent approximately 42% of foreign purchases in Mallorca. The Balearic Islands, Costa Blanca, and Costa del Sol are the preferred areas.

EU Advantages

• 19% rate vs. 24% for non-EU
• Expense deductions on rental income
• DTA preventing double taxation
• Free movement of capital

At SpainTaxForm, we help German property owners with Modelo 210 filing — 100% online, with documentation compatible with Anlage AUS.

Sources

• 1AEAT — Non-Resident Income Tax (IRNR)
• 2German-Spanish DTA (2011)
• 3Federal Ministry of Finance — DBA Spain
• 4General Council of Notaries — Statistics 2025