Annual taxes on a Mallorca home for non-residents: Modelo 210, IBI and deadlines

If you own a home in Mallorca but are not tax resident in Spain, you will pay at least two taxes every year: Non-Resident Income Tax (Modelo 210), even if you never rent the property out, and the town hall’s IBI property tax. There is usually a municipal rubbish charge too and, only for very large estates, Wealth Tax. This guide explains what each one is, how it is calculated and when it is due, including the new deadlines that apply from 2026 income.

It’s one of the questions our clients ask most often after completion: “So what do I have to pay every year?” The good news is that for a holiday home you use yourself, the amounts are usually modest. The bad news is that Modelo 210 is easy to forget, and the penalties arrive years later.

Who counts as a non-resident for tax purposes?

As a rule, you are non-resident if you spend fewer than 183 days a year in Spain and the centre of your economic interests is in another country. Owning a house in Mallorca, having an NIE or holding a Spanish bank account does not make you resident. If you live here for most of the year, things change completely and you pay Spanish income tax like any resident. If you are unsure, check with an adviser before filing anything.

At a glance: what a non-resident owner pays each year

1. Modelo 210: Non-Resident Income Tax

This is the tax that surprises most buyers. Spain considers that a home at your disposal generates income, even if you don’t rent it out. So every non-resident owner files one Modelo 210 a year for each property.

If you use the home yourself (no rental)

You declare deemed income (renta imputada): a percentage of the property’s cadastral value (valor catastral), to which the tax rate is applied.

• Percentage: 1.1% of the cadastral value if the town’s cadastral values were revised in a general valuation taking effect from 1 January 2012; 2% otherwise.
• Tax rate: 19% if you live in the EU, Iceland, Norway or Liechtenstein; 24% if you live anywhere else, including the UK and Switzerland.
• No deductions: nothing can be deducted from deemed income – not IBI, community fees or mortgage interest.
• Per owner: if a couple owns the house 50/50, each of them files their own Modelo 210 for their half.

You’ll find the cadastral value on your IBI bill. The Spanish Land Registry’s online portal (Sede Electrónica del Catastro) shows the year of each town’s last general valuation.

Example. A home with a cadastral value of €150,000, owned by someone living in Germany:

If you bought or sold during the year, or rented the home for part of it, deemed income is prorated by days.

If you rent the home out

For rented periods there is no deemed income; you declare the actual rental income instead. EU and EEA residents can deduct related costs (IBI, community fees, insurance, utilities you pay, mortgage interest, depreciation, platform fees) and pay 19% on the net figure. Residents elsewhere pay 24% on gross income, with no deductions.

Remember that holiday rentals in Mallorca require a licence, and not every property can get one. See our guide to buying a house in Mallorca.

Modelo 210 deadlines (changing from 2026 income)

If you haven’t yet filed your 2025 deemed income, there’s still time: the deadline is 31 December 2026. The new deadlines come from Orden HAC/623/2026. In addition, Real Decreto-ley 29/2026 changes how deemed income is calculated from 2027; we’ll update this article once its final application is clear.

2. IBI: the municipal property tax

IBI (Impuesto sobre Bienes Inmuebles) is charged by the town hall where the property is located. It is calculated by applying each town’s rate to the cadastral value, so the amount depends on the type of property (apartment, house, rural finca…), its cadastral value and the town it is in. It is payable by whoever owns the property on 1 January; on a sale it is usually split between buyer and seller by days, and that should be agreed in writing.

Our practical tip: pay it by direct debit from your Spanish account. Many overseas owners don’t receive letters in time and only discover the surcharge once it has been added. Bear in mind too that the property itself is liable for unpaid IBI, even after a change of owner – which is why we always check it is paid up when you buy.

3. Rubbish collection charge

Waste collection is an annual municipal charge, separate from IBI. Each town hall sets the amount and how it is collected: sometimes as its own bill, sometimes together with other local taxes. As with IBI, direct debit is the easiest option.

4. Wealth Tax: only for large estates

Non-residents pay Wealth Tax on their assets in Spain as of 31 December. Under current rules they can apply the regulations of the region where most of those assets are located; in the Balearic Islands the tax-free allowance is €3,000,000 per person. Above that, the temporary solidarity tax on large fortunes also comes into play. Most of our clients have nothing to pay, but if your assets in Spain are substantial, review it with a tax adviser.

What about my home country?

Spain taxes property located in Spain, but your country of residence may also require you to declare it. Double taxation treaties (for example, between Spain and the UK or Germany) set out how this works. Ask your tax adviser at home, especially if you rent the property out.

Common mistakes

1. Thinking that if you don’t rent, there is nothing to declare. Deemed income must be declared every year.
2. Filing one Modelo 210 for a couple. Each owner files their own.
3. Not paying IBI and the rubbish charge by direct debit. Letters get lost and surcharges follow.
4. Letting years pile up. The Tax Agency can claim all years not yet time-barred, with surcharges and interest – and it usually comes to light when you sell.

How we can help

Lighthouse Living is not a tax advisory firm, but we stay with our clients after the purchase. If you need a gestoría to file your Modelo 210 every year in English, German or Spanish, we can put you in touch with trusted local professionals. And if you’re still at the buying stage, start with your NIE number and a realistic estimate of the purchase taxes.

Frequently asked questions

Do I need to file Modelo 210 if I don’t rent out my home in Mallorca?

Yes. Non-residents declare deemed income every year for a home kept for their own use, even if they earn nothing from it.

How much does a non-resident pay each year for a home in Mallorca?

It depends on the cadastral value and the town. With a cadastral value of €150,000 and residence in the EU, Modelo 210 comes to roughly €314–570 a year, plus IBI and the rubbish charge.

What is the deadline for my 2025 deemed income?

31 December 2026. For 2026, the filing period runs from 1 April to 31 December 2027.

Do I need a fiscal representative?

Not always. It depends on your country of residence and your circumstances; your adviser will tell you whether it is required in your case.

This article is for general information and is up to date as of October 2026. It is not a substitute for professional tax advice.