Buying in Mallorca as a Non-Resident: IRNR, the Modelo 210 Form, and the 3% Withholding Few People Know About

Buying a home in Mallorca without being a Spanish resident doesn’t end when you sign at the notary. From that point on, an annual tax obligation begins that catches many foreign owners by surprise: the Non-Resident Income Tax (IRNR), which must be declared every year even if the property sits empty.

In short: as a non-resident, you must declare a “deemed income” every year for owning a home in Spain — even if you don’t rent it out — using the Modelo 210 form. You pay 19% if you’re resident in the EU/EEA, or 24% otherwise. And when the time comes to sell, the buyer is legally required to withhold 3% of the price and pay it to the Spanish Tax Agency on your behalf, using the Modelo 211 form.

“Deemed income”: taxed even when the property sits empty

The Spanish Tax Agency assumes that every property generates income, whether it’s used or not. If a non-resident owner doesn’t rent the home out, they must still declare a “deemed income” (renta imputada) every year via the Modelo 210.

From 2026, the window to file the deemed-income return for the previous tax year opens on 1 April, with a deadline of 31 December of the year following the one the return corresponds to.

It’s an obligation many buyers don’t discover until they receive a notice from the Spanish Tax Agency — already with surcharges attached.

How the taxable base is calculated

The taxable base for deemed income is calculated on the property’s cadastral value (valor catastral), not on the purchase price. The applicable rate depends on whether the municipality has revised its cadastral values within the last decade:

• 1.1% of the cadastral value, if the municipality has revised it within the last ten years.
• 2% of the cadastral value, if there has been no revision in that period.

The exact figure and the date of the last revision appear on your IBI (property tax) bill, so it’s worth checking every year before working out your return.

The tax rate: 19% or 24% depending on tax residency

A different rate applies to that taxable base depending on the owner’s tax residency: residents of the European Union, Iceland and Norway (the EU/EEA area) pay 19%, while non-residents from any other country pay 24%. This difference matters and is worth keeping in mind when planning the property’s annual tax bill — especially for buyers considering a change of tax residency in the future.

Item	EU/EEA residents	Other non-residents
Rate on deemed income	19%	24%
Taxable base (cadastral value revised <10 years ago)	1.1%	1.1%
Taxable base (not revised in 10 years)	2%	2%

The 3% withholding on sale: a surprise for the next buyer

The least-known part is what happens at the time of sale. When a non-resident sells a property in Spain, the law requires the buyer — whether resident or not — to withhold 3% of the sale price.

That amount must be paid directly to the Spanish Tax Agency on the seller’s behalf, within one month of signing the deed, using the Modelo 211 form. That withholding works as a payment on account of the tax the non-resident seller owes on the capital gain from the sale.

For the buyer, forgetting this withholding has direct consequences: if they fail to withhold and pay it within the deadline, they can end up being held subsidiarily liable for the seller’s tax debt.

For the non-resident seller, that 3% withheld is later deducted from the final tax owed on the gain from the sale, via the Modelo 210 itself. If the 3% withheld is more than the tax actually due, the seller is entitled to claim a refund of the difference.

What happens if you rent the property out instead of leaving it empty

If instead of leaving it empty you decide to rent it out, deemed income no longer applies, and instead you’re taxed on the actual rental income, also via the Modelo 210, at the same 19% or 24% rate depending on your tax residency.

Keep in mind that if it’s a short-term tourist rental, the registration requirements and Balearic tourism regulations come into play on top of these IRNR obligations, with their own penalty regime, which we explain in detail in our guide to short-term rentals in Mallorca.

Why specialist tax advice is worth it

Between the annual deemed income, calculating the applicable cadastral value, the rate depending on tax residency, and the 3% withholding on sale, there are several overlapping obligations that are easy to miss without realising it — especially if you manage the property remotely.

The practical recommendation is to work from year one with a tax advisor specialised in non-residents, who will file the Modelo 210 on time and anticipate everything related to the 3% withholding and the Modelo 211 when the time comes to sell. The official forms and deadlines can be checked on the Spanish Tax Agency’s electronic office.

This article is for general informational purposes and does not replace the personalised tax advice each individual case requires.

Frequently asked questions

Do I have to declare IRNR if the property is empty all year?
Yes. Deemed income applies precisely because you have a property available to you in Spain, whether you use it or not.

Who pays the 3% withholding on sale, the buyer or the seller?
The buyer withholds it, deducting that amount from the agreed price and paying it to the Spanish Tax Agency on behalf of the non-resident seller.

Can I get back part of the 3% withheld if I sell at a loss?
Yes — if the tax actually owed on the capital gain is lower than the 3% withheld, or if there’s a loss, you can request a refund of the difference via the Modelo 210.

Does anything change if I become a Spanish tax resident?
Yes — in that case you stop paying IRNR and start paying IRPF (Spanish personal income tax) as a resident, with different rules and obligations.

If you’re still in the buying stage, don’t forget the earlier steps: getting your NIE and working out the ITP due on your purchase.