Property News from Spain

Demand for luxury residences in Spain is growing fast, especially among foreign buyers. Fortunately, supply is keeping up with this demand: At any one time, tens of thousands of top-budget homes are for sale nationwide. And the high-end property market is expected to continue to expand throughout 2025, even now the 'golden visa' scheme has ended. Buyers from outside the European Union (EU) can no longer acquire automatic residence by spending half a million euros or more on a property, but this has not, apparently, put investors off. Top-of-the-range villas and élite apartments remain highly sought-after, according to industry experts.

The majority of buyers of luxury Spanish homes are from Germany and France, and from the UK and Russia, with growing interest from the USA and countries in Latin America and the Middle East.

Exclusive properties can be found anywhere in Spain, but availability is greater in specific areas, as we'll show you here.

What Spain's luxury housing market can offer

Luxury property does not necessarily mean the most expensive. In fact, one reason Spain is so popular with high net-worth buyers is that their money goes further. Whilst a sum in the low millions might get you a small or medium-sized modern flat in many global cities, such as London, New York, or Dubai, it would be enough for a spacious villa with a garden and private swimming pool in most of Spain.

In price terms, Spain's property market considers 'luxury' to be over €1 million, and 'super-luxury' to be over €3m. Compared with many other countries, these figures are really quite low for what they will actually buy you.

Estate agencies say top-budget buyers typically look for uniqueness, quality, energy efficiency, and attractive surroundings. High-demand features include 'Smart home' technology, and private leisure facilities such as an infinity pool, large garden, private beach, cinema room, gym and tennis court.

Privacy and security are frequently a major priority. Often, the wealthiest buyers are instantly-recognisable faces, including global celebrities, for whom Spain has long been a choice destination. Gated urbanisations (residential complexes) with 24-hour patrols, and secluded villas in open countryside, are widely available.

Read more at thinkSPAIN.com

Modelo 210 is the Spanish tax form used by non-residents to declare income obtained in Spain. It applies to individuals who are not tax residents in Spain but earn Spanish-source income, including income related to property ownership, rentals, or capital gains. These obligations form part of the wider non-resident tax framework in Spain.

For many people, Modelo 210 only becomes relevant after buying property, when ownership itself creates ongoing tax obligations — even if the property is not rented out and generates no actual income.

This guide explains what Modelo 210 is, who must file it, when it applies, how often it must be submitted, and what it implies in practice for non-resident property owners in Spain.

What is Modelo 210?

Modelo 210 is the official form used to declare and pay Non-Resident Income Tax (IRNR – Impuesto sobre la Renta de No Residentes) in Spain. It is administered by Agencia Tributaria (the Spanish Tax Agency) and applies whenever a non-resident receives—or is deemed to receive—income from Spanish sources.

Unlike resident income tax, non-resident income tax is not declared globally. Each source of income is declared separately, which is why a single taxpayer may need to submit more than one Modelo 210 in a year.

For example:

• One form per property
• One form per owner (even for jointly owned property)
• Separate filings for rental income, imputed income, or capital gains

Who needs to file Modelo 210?

You generally need to file Modelo 210 if you are not a Spanish tax resident and you:

• Own property in Spain (even if it is not rented)
• Rent out a Spanish property
• Sell a property in Spain
• Receive other Spanish-source income (such as interest, dividends, pensions, etc.)

This makes Modelo 210 particularly relevant for second-home owners and property investors, even when the property is only used occasionally and does not generate rental income.

When does Modelo 210 apply?

Modelo 210 applies in several common situations where non-residents derive income — or are deemed to derive income — from Spain. The filing frequency, deadlines, and tax treatment depend on how the property is used and what type of income is involved.

Owning a property in Spain (not rented)

If you own a property in Spain and do not rent it out, Spanish tax law assumes a deemed (imputed) income based on the cadastral value of the property, even if no rent is received.

• Declared once per year
• No actual rental income is required
• Filed using Modelo 210

This obligation applies for every year you own the property, regardless of whether you use it personally, leave it empty, or visit only occasionally. It ends only when the property is sold.

Read more at thinkSPAIN.com