What is the purpose of Model 210?
Model 210 is the form used by the Spanish tax authorities (Hacienda) for the self-assessment of the Non-Resident Income Tax (IRNR). This tax applies to individuals or legal entities that earn income in Spanish territory but have their tax residence outside of Spain. Model 210 is used to declare and pay the taxes corresponding to income generated in Spain by non-residents.
Who has to file this form?
Model 210 must be submitted by non-residents in Spain whose tax residence is outside of Spain and who obtain income from Spanish sources, such as:
- Owners of real estate in Spain who rent out their properties.
- Individuals who receive interest, dividends, or capital gains from Spain.
- Foreign companies and individuals who operate in Spain without a permanent establishment.
Residents of other countries who generate income in Spain are required to use this form to report and pay taxes on that income.
When must it be submitted?
The submission of Model 210 depends on the type of income generated. The key dates are as follows:
- Imputed income from urban real estate must be declared in the calendar year following the accrual date.
- Income from the sale of real estate must be declared within three months, starting one month after the date of transfer.
- All other income must be declared within the first twenty calendar days of April, July, October, and January, corresponding to the income accrued in the previous natural quarter.
When do I have to file this form and when not?
You need to file Model 210 when the income you generate in Spain is subject to the Non-Resident Income Tax (IRNR), meaning if you earn income in Spain but are considered a non-resident.
It is not necessary to file Model 210 if withholding taxes or payments on account have already been applied, except in the case of gains from investment funds, where the withholding is lower than the tax you should pay. This is explained in Articles 24 and 25 of the Tax Law.
It’s also important to check whether a double taxation treaty exists that can reduce your tax burden or prevent double taxation.
How is it calculated?
The calculation of Model 210 varies depending on the type of income obtained. Therefore, it’s important to distinguish between employment income, imputed real estate income, real estate capital gains, and capital gains.
In addition, you must consider whether the non-resident belongs to a country within the EU or the European Economic Area (EEA), which includes Iceland and Norway, or if they are outside these territories.
The applicable tax rate is 19% for residents of EEA countries and 24% for other residents.
The taxable base generally corresponds to the income obtained, with the possibility of deducting the necessary expenses incurred to generate that income.