Upcoming Tax Obligations: Model 210 (NRIT) for Properties in Spain Owned by Residents of Andorra

Upcoming Tax Obligations: Model 210 (NRIT) for Properties in Spain Owned by Residents of Andorra

Authors: Daniel González Polo, Marc Urgell Díaz

Tax residents in Andorra who own real estate in Spain must comply with certain tax obligations before the Spanish Tax Agency by filing Model 210 under the Spanish Non-Resident Income Tax (IRNR) regime.

This obligation applies both to properties used for personal purposes, such as second homes, and to rental properties generating income.

Failure to comply with these reporting obligations may result in surcharges, penalties and tax audits by the Spanish tax authorities.

Who Must File Model 210?

All individuals who own property in Spain and are not tax residents in Spain must report the corresponding income.

This obligation exists regardless of whether the property:

• Is rented on a permanent basis.

• Is used as a holiday home or second residence.

• Remains vacant during all or part of the year.

As a general rule, a separate tax return must be filed for each property.

Taxation of Non-Rented Properties

Where a property is not rented out, the owner must pay tax on deemed real estate income.

The taxable base is calculated as:

• 1.1% of the cadastral value if it has been updated within the last ten years.

• 2% of the cadastral value in all other cases.

The corresponding tax rate is then applied depending on the taxpayer’s tax residence and the period during which the property was available for personal use.

Filing Deadline

For deemed income corresponding to tax year 2024, the filing deadline is 31 December 2025.

Taxation of Rental Properties

Where the property generates rental income, the applicable tax treatment depends on the taxpayer’s country of residence.

Tax Rate

• 19% for residents of the European Union.

• 24% for residents outside the European Union, including tax residents of Andorra.

Deductibility of Expenses

Until recently, the deduction of rental expenses was limited to EU residents.

However, recent case law from the Spanish National Court has opened the possibility for taxpayers resident outside the EU to claim deductions as well, although confirmation from the Spanish Supreme Court is still pending.

Filing Deadline

Rental income earned during tax year 2025 must be declared by 20 January 2026.

Where payment is made by direct debit, the deadline is 15 January 2026.

Required Documentation for Model 210

To prepare the tax return correctly, the following documentation is generally required:

• Passport, DNI or NIE of the property owners.

• Property title deeds.

• Property tax receipt (IBI) or cadastral documentation.

• Rental income information.

• DNI or NIE of the tenant.

• Supporting documentation for property-related expenses.

These expenses may include:

• Community fees.

• Property tax (IBI).

• Renovation and repair costs.

• Property management fees.

• Other rental-related expenses.

Consequences of Non-Compliance

Failure to file Model 210 within the required deadlines may result in:

• Late filing surcharges.

• Interest for late payment.

• Tax penalties.

• Tax inspection and assessment procedures.

For this reason, property owners should regularly review their tax obligations relating to Spanish real estate assets.

Conclusion

Tax residents in Andorra who own property in Spain should pay close attention to their Spanish Non-Resident Income Tax obligations.

Correctly filing Model 210 helps avoid tax contingencies and ensures compliance with Spanish tax regulations, whether the property is used privately or generates rental income.