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Self-Use Tax in Spain – What Foreign Owners of Holiday Homes on the Costa Blanca Should Know
Owning a holiday property on the Costa Blanca is a dream for many foreigners – a place to relax and enjoy the Mediterranean lifestyle. However, even if the property is not rented out but only used occasionally by the owner, a specific tax obligation arises in Spain: the so-called Self-Use Tax (Imputación de Renta Inmobiliaria). This article explains when it applies, how it’s calculated, and what foreign owners need to keep in mind.
What is the Self-Use Tax?
The Self-Use Tax is a notional income tax levied in Spain on the assumed benefit of owning a property that is not rented out but rather used by the owner or left vacant. It compensates for the financial advantage of living rent-free in one’s own home.
The legal basis is the Non-Resident Income Tax Law (Ley del Impuesto sobre la Renta de no Residentes – IRNR), which applies to non-residents who own property in Spain but are not tax residents there.
Who has to pay the Self-Use Tax?
All foreign property owners (non-residents) who own real estate in Spain and do not rent it out year-round are subject to this tax. For example, anyone owning a holiday home in Dénia, Calpe, Moraira, or Jávea and using it only for personal stays must pay the Self-Use Tax.
If the property is partly rented and partly used by the owner, the tax is calculated proportionally – only for the period of personal use or vacancy.
How is the tax calculated?
The tax is based on the property’s Cadastral Value (Valor Catastral), as shown on the annual property tax receipt (Impuesto sobre Bienes Inmuebles – IBI). Depending on the date of the last revision, the following rates apply:
- 1.1% of the cadastral value if updated after January 1, 1994
- 2% of the cadastral value if not updated since then
This amount represents the deemed income and is multiplied by the tax rate for non-residents:
- 19% for EU, Icelandic or Norwegian residents
- 24% for residents of other countries
Example Calculation
A German couple owns a holiday home in Calpe with a cadastral value of €150,000. The value was updated recently, so the rate of 1.1% applies.
Calculation: €150,000 × 1.1% = €1,650 deemed income.
Tax for EU citizens: 19% of €1,650 = €313.50 per year.
When and how is the tax paid?
The Self-Use Tax is declared annually using form Modelo 210 to the Spanish Tax Agency (Agencia Tributaria). The deadline is usually December 31 of the following year. Example: the 2024 tax must be declared by December 31, 2025.
Each co-owner must file a separate declaration, even for jointly owned properties.
Special case: partial rental
Many owners rent their holiday homes on the Costa Blanca part of the year. In that case, two separate tax types apply:
- Income Tax on rental income during rental periods.
- Self-Use Tax for the remaining months of personal use or vacancy.
Each part must be calculated separately and declared with the same Modelo 210 form.
Can the tax burden be reduced?
As it is a notional tax, reduction options are limited, but owners can consider:
- Verify that the cadastral value is correct and up to date.
- Consider renting out the property part of the year to offset costs (EU residents can deduct related expenses).
- Work with a qualified tax advisor in Spain to ensure compliance.
What if the tax is not paid?
The Spanish tax office increasingly cross-checks property and cadastral data. Failure to pay may result in back payments and fines. Unpaid taxes can also cause delays when selling the property.
Conclusion: A tax obligation often overlooked
The Self-Use Tax in Spain is a legal obligation that many foreign owners are unaware of. Those who own a holiday property on the Costa Blanca and do not rent it out permanently should file their annual declaration to stay compliant and avoid penalties. With professional assistance, filing the Modelo 210 is simple – ensuring peace of mind for your holiday home in Spain.
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