Non-Resident Tax in Spain for Italian Property Owners — Modelo 210 Guide 2026

Why Italian owners pay tax in Spain

Spanish law taxes income from Spanish property regardless of where you live. As an Italian tax resident, you file Modelo 210 for imputed income on personal-use properties, annual rental declarations if you let the home, and capital gains within four months of selling. Italy and Spain have a Double Taxation Agreement: Spain taxes the Spanish property first; you declare in Italy and claim a foreign tax credit.

19% EU rate and deductible expenses

Italian residents benefit from the EU/EEA rate of 19% on IRNR (not the 24% non-EU rate). On rental income you may deduct mortgage interest, IBI (property tax), community fees, insurance, agency commissions and maintenance — significantly lowering the effective tax on Costa Blanca and Mallorca rentals popular with Italian buyers.

Popular areas for Italian buyers

Italians concentrate in Barcelona, Costa Brava, Baleares (Mallorca, Ibiza) and increasingly Valencia. Each municipality has its own cadastral values affecting imputed income (1.1% or 2% of valor catastral). Our wizard applies the correct rate automatically based on your country of residence and property data.

FAQ — Italian owners & Modelo 210