Modelo 210 vs IBI: the two Spanish property taxes every non-resident pays

    If you own property in Spain as a non-resident, you face two completely separate taxes: Modelo 210 (national Non-Resident Income Tax — IRNR — collected by AEAT) and IBI (municipal property tax collected by your town hall). They are NOT alternatives. You pay both, to two different administrations, on different schedules. This guide compares them side by side and shows how the cadastral value links them.

    Quick answer

    IBI is the local council tax you pay to the town hall every year for simply owning the property. Modelo 210 is the national income tax return you file with AEAT on the income that property generates — either imputed (when not rented) or actual rental income. Owning a Spanish home as a non-resident always triggers both.

    Side by side: state tax vs municipal tax

    ConceptIBI (municipal)Modelo 210 / IRNR (state)
    Type of taxLocal property taxNational income tax
    AdministrationTown hall (ayuntamiento)AEAT (Spanish Tax Agency)
    Legal basisRDL 2/2004 Local Tax LawRoyal Legislative Decree 5/2004 (IRNR Law)
    What is taxedMere ownership of the propertyIncome generated by the property (real or imputed)
    Tax baseCadastral value (valor catastral)Cadastral value (imputed) or rental income
    Typical rate0.4% – 1.10% (urban)19% EU/EEA · 24% non-EU
    FrequencyOnce a yearOnce a year (imputed) / Once a year (rental since 2024)
    Trigger dateOwner on 1 JanuaryOwnership during the tax period
    DeadlineSet by each ayuntamiento (Aug–Nov typical)Imputed: full following year · Rental: Jan 1–20
    Where to payTown hall, SUMA, ORGT, bank, direct debitAEAT (collaborating bank, direct debit or online)
    Penalty for late payment5% / 10% / 20% surcharge + interest1% per month up to 15% + interest
    Can you deduct it?Not deductible from IBI itselfIBI IS deductible on rental Modelo 210 (EU/EEA)

    IBI: municipal property tax

    The Impuesto sobre Bienes Inmuebles (IBI) is the Spanish equivalent of UK council tax. It is paid annually to the town hall where the property is located. The base is the cadastral value and the rate is set by each municipality within a legal range. Whoever owns the property on 1 January is liable. There is no exemption for non-residents.

    Modelo 210: state tax on property income

    Modelo 210 is the tax return non-residents file with AEAT to declare income obtained in Spain. For an unrented second home you declare imputed income (1.1% or 2% of cadastral value × your rate). If rented, you declare actual rental income less deductible expenses (EU/EEA only). Rate: 19% EU/EEA, 24% rest of world.

    The link between them: cadastral value

    IBI and Modelo 210 are different taxes but share the cadastral value (valor catastral). The same euro figure on your IBI receipt is used for Modelo 210 imputed income. If the cadastral value was revised in the last 10 years, both IBI and the imputation rate (1.1% instead of 2%) are affected.

    Worked example: how much you pay for each tax

    Apartment on the Costa Blanca with cadastral value €120,000 (revised, municipal IBI rate 0.65%). Annual IBI: 120,000 × 0.65% = €780 to the town hall. Modelo 210 imputed (German owner, EU): base 120,000 × 1.1% = €1,320; tax 1,320 × 19% = €250.80 to AEAT. Total annual: €1,030.80 across municipal and state — two separate bills.

    Annual checklist for non-resident property owners

    • Pay IBI when notified by your town hall (or SUMA/ORGT in some provinces).
    • File Modelo 210 imputed income return if the property is not rented (deadline: full following year).
    • File Modelo 210 rental return if you receive rental income (Jan 1–20 of the following year).
    • Keep your IBI receipt — it contains the cadastral value needed for Modelo 210.
    • Do not confuse cadastral reference (code) with cadastral value (euro amount).

    Which applies to your situation?

    Second home only (not rented)

    You pay IBI to the town hall every year AND file an annual Modelo 210 imputed income return with AEAT.

    You rent out the property

    You pay IBI annually AND file an annual Modelo 210 rental return (you can deduct IBI if EU/EEA resident).

    You are selling the property

    The buyer withholds 3% and files Modelo 211. You declare the gain on Modelo 210. IBI is owed by whoever owned on 1 January.

    Common mistakes to avoid

    • Believing that paying IBI exempts you from filing Modelo 210 — they are independent obligations.
    • Filing Modelo 210 and assuming AEAT will notify the town hall — the administrations do not share collections.
    • Selling in January and refusing to pay IBI — the 1-January owner is the legal taxpayer.
    • Using the cadastral reference instead of the cadastral value on Modelo 210.
    • Deducting IBI from imputed income — IBI is only deductible on the rental modality.
    • Ignoring Modelo 210 because you «only use the house in summer» — imputed income is mandatory.

    FAQ: Modelo 210 vs IBI

    Let us handle your Modelo 210

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