Modelo 210 for Australian residents — EU or non-EU rate?

The non-EU rate of 24% — without question. Australia is neither an EU nor an EEA member, so Australian property owners are classified as third-country nationals for Spanish tax purposes. 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. The 24% rate applies to imputed income from self-use or vacancy as well as to rental income. For rental income, the absence of the expense deduction compounds the rate difference: under current legislation (Article 24 LIRNR), third-country nationals cannot deduct any costs — the 24% is applied to gross rental receipts. 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 Australia and Spain is in force and assigns the taxing rights: Spain has the right to tax income from Spanish property. The IRNR paid is credited against Australian tax. Australia taxes its residents on worldwide income — the Spanish property income must be reported in the Australian tax return. The credit is claimed via the Foreign Income Tax Offset. A practical example: an Australian owner holds an apartment on the Costa del Sol, cadastral value €160,000, municipality with post-2012 valuation, sole owner, self-used year-round. Imputed income: €160,000 × 1.1% = €1,760. Tax: €1,760 × 24% = €422.40. Filing deadline: 31 December of the following year (tax year 2025; from tax year 2026, changed deadlines apply per Orden HAC/623/2026). In practice, Australian owners are regularly represented on Mallorca and the Costa del Sol. Many first learn of the annual IRNR obligation at the point of purchase — unlike EU citizens, the rate is higher and the expense deduction is not available under current law. The Justificante should be retained for the ATO tax return.