Tax Advice Blog for Non-Residents in Spain
Practical articles from Canary Tax Advisor, the English-language website of Bermejo Patrimonial, for foreign property owners in Lanzarote and the Canary Islands.
This blog provides practical guidance on Spanish tax issues affecting non-resident property owners, holiday rental owners and international clients with property interests in Lanzarote and the Canary Islands.
The content is prepared for general information purposes and does not replace personalised professional advice from Fernando Bermejo Reales or Bermejo Patrimonial.
Selling a Property in Spain as a Nonresident? Keep the Right Documents
IWhen a nonresident sells a property in Spain, tax is generally calculated on the profit obtained from the sale. This is the difference between the adjusted purchase value and the net sale value.
For this reason, the original purchase deed is not enough. Properly supported purchase expenses, investments, improvements and sale expenses can reduce the taxable gain and, therefore, the final Spanish tax bill.
The purchase value may include the original price, taxes paid on acquisition, notary fees, Land Registry fees, agency commissions and other professional costs directly connected with the purchase. If the property was inherited or received as a gift, the inheritance or donation deed, the declared tax value and the related tax documents should be retained.
Invoices for qualifying investments and improvements are also important. These may include extensions, structural works or other works that improve the property. Ordinary maintenance and repairs do not normally increase the purchase value for the purpose of calculating the gain.
An invoice should clearly identify the supplier, the owner, the property, the work carried out, the date and the amount paid. It is also advisable to retain bank payment records, contracts, licences and photographs of the work. A bank transfer or an informal receipt may not be enough to prove the nature of the expense.
Documents relating to the sale should also be kept. These include the estate agent’s invoice, legal and professional fees, notary expenses paid by the seller and the municipal capital gains tax, where applicable. Expenses must be directly connected with the sale and paid by the seller.
If the property has been rented, previous rental declarations and amortisation calculations must also be reviewed. Spanish tax rules may require the purchase value to be reduced by the minimum tax depreciation, even where the owner did not claim that depreciation as an expense.
A simple example shows the importance of the records. Assume a property was never rented and has no special tax relief. If documented purchase improvements and sale expenses total €35,000, the taxable gain is reduced by that amount. At the current 19 per cent tax rate, the tax difference would be €6,650. The calculation is €35,000 multiplied by 19 per cent.
The buyer normally withholds 3 per cent of the agreed sale price and pays it to the Spanish Tax Agency. This is an advance payment, not the final tax. The seller must calculate the actual gain through Form 210 and may request a refund if the amount withheld exceeds the final liability.
Documents do not create a tax deduction. They prove that a cost qualifies. Owners should organise these records when they purchase or improve the property, not when a buyer has already been found.
At Bermejo Patrimonial, we help nonresident property owners review the available documents, calculate the taxable gain and prepare the Spanish tax return connected with the sale.
Tax Advisor in Lanzarote for Non-Residents – Bermejo Patrimonial
15 July 2026
This article is for general information only. For personalised advice, please contact Fernando Bermejo Reales at Bermejo Patrimonial through Canary Tax Advisor.
April Modelo 210 for UK Holiday Rental Owners in Lanzarote
If you are a UK resident and your property in Lanzarote has generated rental income at the beginning of 2026, now is the right moment to prepare for the next Modelo 210 deadline. In Spain, non-resident rental income is generally declared through Modelo 210, and the usual filing period for tax payable falls within the first 20 calendar days of April, July, October and January, depending on the quarter in which the income was obtained.
This is particularly important for British owners, because the tax rules are not the same as for EU residents. According to the Spanish Tax Agency, after Brexit, UK residents generally do not benefit from the expense deduction regime that may still apply to EU or certain EEA residents, and the general tax rate is 24% rather than 19%.
To prepare the filing correctly, owners should have their NIE, cadastral reference, co-ownership percentage, rental dates and total gross rental income ready. It is also essential to separate rental periods from private use, because Spanish tax treatment differs depending on how the property was used during the year. The AEAT specifically distinguishes between rental income and imputed income for privately used urban property.
At Bermejo Patrimonial – Canary Tax Advisor, we assist UK and international property owners in Lanzarote with Modelo 210, holiday rental tax calculations, mixed-use property analysis and ongoing non-resident compliance. Early review helps avoid errors, delays and unnecessary tax exposure.
Tax Advisor in Lanzarote for Non-Residents – Bermejo Patrimonial
20 March 2026
This article is for general information only. For personalised advice, please contact Fernando Bermejo Reales at Bermejo Patrimonial through Canary Tax Advisor.
IRNR for UK Property Owners in Lanzarote – Step by Step
If you own a property in Lanzarote and you are not a Spanish tax resident, you are legally required to comply with Spanish Non-Resident Income Tax (IRNR). This obligation applies regardless of whether the property is rented out, used privately, or a combination of both. Many owners are unaware that even private use generates a taxable imputed income under Spanish law.
The tax treatment depends on how the property is used during the year. If the property is used exclusively for private purposes, taxation is calculated based on the cadastral value, applying a percentage established by Spanish regulations. If the property is rented to tourists as a holiday rental, tax is calculated on the income generated during the rental periods. In mixed-use situations, the calculation must differentiate between rental days and private use days, applying the corresponding tax treatment to each period.
In order to prepare the filing correctly, certain information is required, including the owner’s NIE number, identification document, cadastral reference, purchase details and, where applicable, rental income figures and dates of occupancy. Accurate classification of property use is essential, as incorrect reporting can lead to penalties or future complications, particularly if the property is later sold or inherited.
For UK residents, taxation is generally applied on gross rental income, and filing deadlines vary depending on whether the property generates rental income or is used privately. Rental income may require periodic submissions, while imputed income for private use is declared annually. Failure to file within the correct timeframe may result in surcharges, interest and potential administrative penalties.
Once the calculation is completed, the return is prepared and submitted to the Spanish Tax Agency, and payment is processed accordingly. Official confirmation of filing is issued and retained as proof of compliance. Maintaining proper documentation is particularly important for non-resident owners, as Spanish tax authorities may request historical filings during audits or property transactions.
Bermejo Patrimonial, based in Arrecife (Lanzarote), provides professional assistance to UK and Irish property owners in relation to Spanish Non-Resident Income Tax compliance. Our services include tax calculation, preparation and submission of returns, assessment of mixed-use properties, and ongoing annual compliance support. International clients are assisted online through Canary Tax Advisor, a trading name used for our non-resident advisory services.
Early compliance and accurate filing ensure legal security and prevent unnecessary financial exposure. Property ownership in Spain carries ongoing tax responsibilities, and professional oversight helps ensure that obligations are met correctly and on time.
If you require assistance with IRNR compliance in Lanzarote, you may request a personalised quotation and professional review of your situation.
Tax Advisor in Lanzarote for Non-Residents – Bermejo Patrimonial
26 February 2026
This article is for general information only. For personalised advice, please contact Fernando Bermejo Reales at Bermejo Patrimonial through Canary Tax Advisor.
Modelo N2 Deadline 2 March: What Non-Resident Property Owners in Lanzarote Must Know
If you own property in Lanzarote and you are not tax resident in Spain, you may be required to submit Modelo N2 before 2 March. This annual obligation is frequently overlooked by UK and international property owners, yet failing to comply can lead to administrative penalties and unnecessary complications with the Spanish Property Registry.
Modelo N2 is a declaration that must be filed with the Registro de la Propiedad in certain situations affecting non-resident owners of Spanish real estate. Its purpose is to ensure that the information recorded in the Property Registry is accurate and updated, particularly when ownership structures, co-ownership arrangements, or relevant registry details require formal confirmation or communication. Although it is not a tax return like Modelo 210, it forms part of the broader compliance framework applicable to non-resident property owners in Spain.
The obligation may apply if you are a non-resident individual who owns property in Lanzarote, especially where the property is jointly owned, inherited, subject to structural ownership changes, or where registry information must be reviewed or confirmed. Each case should be assessed individually, as the filing requirement depends on the specific ownership structure and circumstances.
The deadline for submission is 2 March each year. It is important not to confuse this obligation with other common filings such as Non-Resident Income Tax (Modelo 210) or local property tax (IBI). Modelo N2 relates specifically to registry compliance and administrative transparency regarding property ownership. Missing the deadline may result in sanctions, registry annotations, or future complications when selling, transferring, or inheriting the property.
For many British and international owners who use their property as a holiday home or occasional rental, this obligation is often unknown. However, ensuring full compliance with Spanish administrative requirements is essential to avoid unexpected legal or financial issues in the future. Proper registry compliance provides security, clarity, and legal certainty regarding property rights in Spain.
Bermejo Patrimonial, through its specialised platform Canary Tax Advisor, assists non-resident property owners in Lanzarote with Modelo N2 filings, Non-Resident Income Tax (Modelo 210), inheritance tax matters, and ongoing property compliance in the Canary Islands. If you are unsure whether Modelo N2 applies to your situation, it is advisable to review your case before the 2 March deadline to ensure full compliance and peace of mind.
If you require professional assistance regarding your property obligations in Lanzarote, contact Bermejo Patrimonial – Canary Tax Advisor for tailored advice.
Tax Advisor in Lanzarote for Non-Residents – Bermejo Patrimonial
25 February 2026
This article is for general information only. For personalised advice, please contact Fernando Bermejo Reales at Bermejo Patrimonial through Canary Tax Advisor.
