Modelo 210 after Brexit — what applies to British property owners?

Since 1 January 2021 — the end of the Brexit transition period — British nationals are classified as third-country nationals for Spanish tax purposes. The IRNR rate increased from 19% to 24%. What matters is tax residency, not nationality. A German national tax-resident in Switzerland is treated as a third-country national; a British national tax-resident in Germany is treated as an EU resident. These rates apply to ongoing income — self-use and rental. Capital gains on property sales are subject to different rules. This change affects all British owners of Spanish property, regardless of when the property was purchased. There is no grandfathering for properties bought before Brexit — the rate is determined by the owner's nationality at the time of filing, not the purchase date. For rental income, an additional disadvantage applies: under current legislation (Article 24 LIRNR), third-country nationals cannot deduct expenses. The 24% rate is applied to gross rental receipts. EU citizens, by contrast, pay 19% on the net amount after deductions. However, the Audiencia Nacional ruled on 28 July 2025 (SAN 3630/2025) that this exclusion violates the EU free movement of capital (Article 63 TFEU). The ruling is not yet final and the Spanish Tax Agency continues to apply current legislation pending the Supreme Court's decision. Individual advice from an Asesor Fiscal is recommended. The double taxation agreement between the United Kingdom and Spain remains in force — Brexit did not terminate it. Spain has the right to tax Spanish property income, and the tax paid in Spain is credited against UK tax. Deadlines: imputed income by 31 December of the following year (tax year 2025; from tax year 2026, changed deadlines apply per Orden HAC/623/2026), rental income by 20 January of the following year. These deadlines are unchanged — Brexit affected the rate and the expense deduction, not the filing dates. British owners on Mallorca, the Costa del Sol and the Canary Islands are particularly affected by this change — they represent one of the largest buyer groups in Spanish property.