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.
How Is a Property Owned by a Non-Resident Company Taxed in Spain?
If a property in Spain is owned by a non-resident company, the tax position is often more straightforward than many owners expect. In the simplest case, where the property is held purely as an investment and is not rented out and not used privately, the main ongoing tax cost is usually the local property tax (IBI) together with any applicable municipal charges.
However, the position can change very quickly depending on how the property is actually used.
If the property is genuinely unused, the annual tax profile may be relatively limited. But if the property is rented out, tax will normally arise on the rental income. If the property is sold, tax may also apply to the gain.
The most sensitive area is usually private use. If a company-owned property is used by a director, shareholder, family member or another connected person, it may no longer be treated as a simple passive investment. Even where no formal rent is charged, private occupation can create a tax exposure that should be reviewed carefully.
This is where many owners make the wrong assumption. They see that the property is not being let commercially and conclude that only IBI is due. Sometimes that is correct. But not always. Once a company-owned property is being enjoyed privately, the Spanish tax analysis can become very different from the position of a genuinely unused investment property.
So the key question is not only who owns the property, but also how it is used in practice.
For non-resident companies, the safest approach is usually to review the structure early, before making assumptions about the annual tax position. A property that is truly held as a passive investment is one thing. A company-owned property that is occupied privately is another.
At Bermejo Patrimonial, we help non-resident owners understand the practical tax treatment of company-owned property in Spain and identify the most sensible compliance position from the outset.
Tax Advisor in Lanzarote for Non-Residents – Bermejo Patrimonial
30 April 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.
