Modelo 210 for Canadian residents — what applies?

Canadian property owners pay the third-country IRNR rate of 24% — on both imputed income and rental income. 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. For rental income, current legislation (Article 24 LIRNR) denies the expense deduction: the 24% rate applies 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 Canada and Spain is in force. It uses the credit method: Spain has the right to tax income from Spanish property, and the IRNR paid is credited against Canadian tax. Canada taxes its residents on worldwide income — the Spanish property income must be reported in the Canadian tax return. The credit is claimed via the Foreign Tax Credit. A practical example: a Canadian owner holds a finca in Mallorca, cadastral value €180,000, municipality with post-2012 valuation, sole owner, self-used year-round. Imputed income: €180,000 × 1.1% = €1,980. Tax: €1,980 × 24% = €475.20. For comparison: an EU citizen with the same property pays €1,980 × 19% = €376.20. Filing deadline: 31 December of the following year (tax year 2025; from tax year 2026, changed deadlines apply per Orden HAC/623/2026). For rental income, the difference is even more pronounced. A Canadian owner with €15,000 in rental receipts pays 24% on the gross amount = €3,600. An EU citizen with €6,000 in deductible expenses pays 19% on €9,000 = €1,710. Deadline for rental income: 1–20 January of the following year. The Justificante from the Modelo 210 should be retained for the Canadian tax return to claim the Foreign Tax Credit.