Form 210 in the Canary Islands: What is it and what is it for?
The Form 210 in the Canary Islands is an essential tax document for those with economic interests in the Canary Islands, especially if they are nonresidents. Although the Canary Islands are part of Spain, they enjoy a special tax status that makes them an attractive destination for investors and property owners. Understanding Form 210 and its use is essential to avoid legal problems and ensure proper tax management of one’s activities.
What is the Model 210?
Model 210 is a Spanish tax form used to declare and pay taxes on the income of nonresidents in Spain. Its main function is to allow tax authorities to collect taxes on income generated by individuals or legal entities that do not reside in Spain but generate income in the territory, including income generated in the Canary Islands.
Key features of the Model 210:
- Recipients: Form 210 applies to all individuals and legal entities not resident in Spain who obtain income from sources located in the Canary Islands. This includes income from real estate, business activities, or investments.
- Types of Income: This model covers various types of income, including rental income from real estate, capital gains from the sale of property, interest income, dividends, and other types of income from economic activities in the Canary Islands.
- Frequency: The return may be filed quarterly or annually, depending on the type of income. For example, rental income generally requires quarterly reporting, while other forms of income may be reported annually.
What is the purpose of the Form 210?
Form 210 serves several purposes related to the tax management of income of nonresidents in the Canary Islands. Some of the main purposes include:
1. Payment of Taxes on the Income of Non-Residents
Form 210 is mainly used for the payment of taxes on income generated by nonresidents. Although the Canary Islands has a special tax status, it still follows Spanish tax law regarding the taxation of non-resident income. This means that anyone who earns income in the Canary Islands, while not a resident, is required to declare it and pay the relevant taxes.
For example, a foreign national who owns a house in the Canary Islands and rents it out during the year is required to declare rental income and pay corresponding taxes via Form 210.
2. Fiscal and Legal Compliance
Filing Form 210 correctly is essential to be in compliance with Spanish tax law. Failure to comply with tax return obligations can lead to financial and legal penalties. Submitting this form ensures that nonresidents comply with Spanish tax law, avoiding possible problems with theSpanish Tax Agency (Agencia Tributaria).
3. Management of Real Estate in the Canary Islands
A common case in which Form 210 is used is the management of real property. Nonresidents who own property in the Canary Islands must declare rental income obtained from such property or, in some cases, also deemed income from non-rented property. This form makes it possible to calculate and pay the corresponding tax on such income.
4. Declaration of Capital Gains
When a nonresident sells property in the Canary Islands, he or she is required to declare any capital gains obtained through Form 210. The capital gain is the difference between the sale price and the purchase price, and a tax is charged on this difference. It is important to declare these transactions correctly to avoid penalties and to obtain any refunds of overpaid taxes.
New 2024: Form 210 for non-residents changes
As of January 1, 2024, the Spanish Tax Agency has introduced important changes for those who, while not tax residents in Spain, own property in the country, including the Canary Islands, and receive income from tourist rentals. Form 210, used to declare such income, will be updated both in form and in the way it is filed.
Here’s what changes:
✅ Compulsory telematic submission 1.
Beginning in 2024, Form 210 can only be filed online, through theAgencia Tributaria website. The paper mode has also been eliminated for nonresidents without a tax representative. If you do not have a Spanish digital certificate, it is highly recommended to appoint a tax representative.
✅ Optional annual declaration for rental income 2.
The most significant change concerns the possibility of aggregating rental income and declaring it only once a year, instead of quarterly as was the case in the past.
This option is optional, but allowed only if:
All income comes from the same property;
They are of the same type (e.g., tourist rentals);
The same tax rate is applied.
Due date: January 1 to 20 of the following year (e.g., income 2024 → declaration by January 20, 2025).
If payment by bank debit is desired, the due date is advanced to January 15.
✅ 3. Automated checks with Airbnb, Booking, Vrbo, etc.
The Spanish Tax Agency has activated automatic checks with major tourism platforms. Portals such as Airbnb, Booking.com, Vrbo and the like will send data directly to the tax authorities on income received by owners.
If you do not submit Form 210, even for a few days of renting, the tax authorities will notice thanks to this cross-referenced data.
Failure to declare may result in penalties, even if the amount is minimal.
✅ 4. Deduction of expenses only if on time
EU residents (including Italians) can deduct expenses related to the property (maintenance, local taxes, portal fees, etc.), but only if the declaration is submitted on time.
Late submission means losing the right to these deductions, resulting in higher taxation on the gross.
Penalties for failure to file Form 210
Failure to file Form 210 or filing with inaccurate information may result in penalties from Spanish tax authorities. Penalties can vary depending on the severity of the offense, including fines, interest on late payments, and in some cases, additional legal action.
Summing up
Form 210 is an essential tool for the tax management of non-resident income in the Canary Islands. It is used to declare and pay taxes on various types of income generated in the territory, ensuring compliance with Spanish tax law. Whether you are dealing with real estate, business activities or investments, understanding and using Model 210 correctly is crucial to avoid tax and legal problems.
