Italians with Property in the Balearics: Modelo 210 & Italy-Spain DTA

Italy is now the #3 foreign buyer nationality in Spain. If you own property in the Balearic Islands and are tax resident in Italy, you must comply with Modelo 210 for imputed income, rental income and capital gains on sale.

Tax obligations in the Balearics

As an Italian tax resident (EU country), you pay 19% and can deduct directly related rental expenses. The Italy-Spain double taxation agreement prevents you from paying tax twice on the same income.

• Imputed income: annual if the property is not rented (1.1% or 2% of cadastral value × 19%)
• Rentals: quarterly filing with expense deductions at 19%
• Sale: capital gains at 19%, 3% withholding and 4-month Modelo 210 deadline
• Italy-Spain DTA: credit for Spanish tax in your Italian return

Island guides

• Modelo 210 in Mallorca
• Modelo 210 in Menorca
• Complete Italian owners guide
• Rentals for Italians
• 2026 Modelo 210 deadlines

SpainTaxForm handles Modelo 210 for Italian owners in the Balearics with Italian-language support.

Sources

• 1AEAT — IRNR and Modelo 210
• 2Agenzia delle Entrate — Italy-Spain Convention
• 3Spanish Land Registrars — Foreign buyers Balearics