What's the IRNR rate for German property owners in Spain?

19 % flat for EU residents. Applied to imputed income (1.1 % or 2 % of cadastral value depending on revaluation date) for self-use, or to net rental income (after deductible expenses) for let property. Annual filing of Modelo 210 is required either way.

Do I need to file Modelo 720 as a German resident with property in Spain?

Only if you become tax-resident in Spain (>183 days/year here, or your centre of economic interests is in Spain). As a German tax resident with a Spanish holiday flat you're a non-resident here and Modelo 720 doesn't apply. If you do become resident — common for retirees who relocate — you must file 720 listing all foreign assets above €50 000 in each of three categories (accounts · securities · real estate).

How does the Spain-Germany inheritance tax treaty interact with ISD?

There is no specific bilateral treaty for inheritance tax (Erbschaft). The 2012 income-tax treaty doesn't cover ISD. Result: an heir resident in Germany who inherits Spanish property pays Spanish ISD (with the corresponding CCAA bonificación — Madrid 99 %, Andalucía 99 %, others vary), and may also owe German Erbschaftssteuer with a credit for the Spanish tax paid (anrechenbar). Net effect varies wildly — Madrid heirs often net near zero, Bavaria heirs can pay 7-19 % anyway.

Are German pensions taxed in Spain?

If you're tax-resident in Spain, yes — under the 2012 treaty Germany taxes the pension at source (typically 18-25 %) and Spain taxes it again as IRPF income with a credit for the German tax paid. Net rate often lands at the higher of the two systems. Public-sector pensions (Beamtenpension) are an exception — taxed only in the paying state. The Sterbegeld (lump-sum death benefit) is generally not income but may have ISD implications.

Does the digital-nomad visa work for German remote workers?

Yes. The Spanish digital-nomad visa (Ley 28/2022) is open to non-EU AND EU citizens; as a German you don't need it for residency rights but the *fiscal* component is interesting — it routes you to a 24 % flat IRPF on Spanish-source income up to €600 000 for 5 years (the so-called Beckham extension). Whether that beats normal IRPF depends on your worldwide income; we model both before recommending.

What inheritance tax bonus applies in the Valencia region for German heirs?

The Comunidad Valenciana grants a 99 % bonificación on the ISD quota for inheritances within Group I (descendants under 21) and Group II (spouse, descendants 21+, ascendants) since 2023. For a German heir of a Costa Blanca property — assuming Group II relationship to the deceased — the effective ISD is typically 1 % of what the national tax would be. Combined with the Germany-Spain credit mechanism, many estates net out close to zero. The bonus only applies if the deceased was tax-resident in the Valencia region (Torrevieja, Alicante, Benidorm, etc.); for Murcia the structure is similar but the percentages and reduction thresholds differ by year.

Can I rent my Costa Blanca apartment short-term as a German non-resident?

Yes, but you need a regional tourist-rental licence (the Valencia region uses the VT codes — VT-466xxx for Alicante province) registered with the Generalitat Valenciana, and your apartment must meet the décret regional habitability requirements. Tax-wise: rental income is filed quarterly via modelo 210 at 19 % on net (EU resident · deductions allowed: cleaning between guests, platform fees, electricity, IBI, community fees, depreciation). The Costa Blanca municipalities most-asked about — Torrevieja, Benidorm, Calpe, Jávea — have tightened on illegal short-lets in 2024-2025, so file the VT before listing.

By country · Germany

Spanish taxes for German

The German guide to Modelo 210, fiscal representation, NIE and inheritance — handled by a licensed colegiado who speaks your language.

What German property owners need to know

Germany is the second-largest source of foreign property buyers in Spain after the UK, concentrated on the Costa Blanca, Mallorca and the Costa del Sol. As an EU resident the IRNR rate is 19 % and rental deductions (repairs, mortgage interest, depreciation, community fees, IBI) are available — that's a meaningful difference vs UK owners. The other German-specific items: Modelo 720 reporting (if your worldwide assets outside Spain exceed €50 000, you may also have a Spanish reporting obligation if you're tax-resident here), and inheritance tax (ISD) reciprocity with the German Erbschaftssteuergesetz, which often produces double-taxation that the 2012 treaty resolves only partially.

Most common services for German

Tax treaty between Spain and Germany

In force since: 2012
Status: in force
Dividend cap: 15%
Interest cap: 0%

This section is for information only. Treaty rates and reductions depend on the specific income type, your residency certificate and filing procedures. We apply the actual treaty rate in your filing.

Specific questions from German

What's the IRNR rate for German property owners in Spain?: 19 % flat for EU residents. Applied to imputed income (1.1 % or 2 % of cadastral value depending on revaluation date) for self-use, or to net rental income (after deductible expenses) for let property. Annual filing of Modelo 210 is required either way.
Do I need to file Modelo 720 as a German resident with property in Spain?: Only if you become tax-resident in Spain (>183 days/year here, or your centre of economic interests is in Spain). As a German tax resident with a Spanish holiday flat you're a non-resident here and Modelo 720 doesn't apply. If you do become resident — common for retirees who relocate — you must file 720 listing all foreign assets above €50 000 in each of three categories (accounts · securities · real estate).
How does the Spain-Germany inheritance tax treaty interact with ISD?: There is no specific bilateral treaty for inheritance tax (Erbschaft). The 2012 income-tax treaty doesn't cover ISD. Result: an heir resident in Germany who inherits Spanish property pays Spanish ISD (with the corresponding CCAA bonificación — Madrid 99 %, Andalucía 99 %, others vary), and may also owe German Erbschaftssteuer with a credit for the Spanish tax paid (anrechenbar). Net effect varies wildly — Madrid heirs often net near zero, Bavaria heirs can pay 7-19 % anyway.
Are German pensions taxed in Spain?: If you're tax-resident in Spain, yes — under the 2012 treaty Germany taxes the pension at source (typically 18-25 %) and Spain taxes it again as IRPF income with a credit for the German tax paid. Net rate often lands at the higher of the two systems. Public-sector pensions (Beamtenpension) are an exception — taxed only in the paying state. The Sterbegeld (lump-sum death benefit) is generally not income but may have ISD implications.
Does the digital-nomad visa work for German remote workers?: Yes. The Spanish digital-nomad visa (Ley 28/2022) is open to non-EU AND EU citizens; as a German you don't need it for residency rights but the *fiscal* component is interesting — it routes you to a 24 % flat IRPF on Spanish-source income up to €600 000 for 5 years (the so-called Beckham extension). Whether that beats normal IRPF depends on your worldwide income; we model both before recommending.
What inheritance tax bonus applies in the Valencia region for German heirs?: The Comunidad Valenciana grants a 99 % bonificación on the ISD quota for inheritances within Group I (descendants under 21) and Group II (spouse, descendants 21+, ascendants) since 2023. For a German heir of a Costa Blanca property — assuming Group II relationship to the deceased — the effective ISD is typically 1 % of what the national tax would be. Combined with the Germany-Spain credit mechanism, many estates net out close to zero. The bonus only applies if the deceased was tax-resident in the Valencia region (Torrevieja, Alicante, Benidorm, etc.); for Murcia the structure is similar but the percentages and reduction thresholds differ by year.
Can I rent my Costa Blanca apartment short-term as a German non-resident?: Yes, but you need a regional tourist-rental licence (the Valencia region uses the VT codes — VT-466xxx for Alicante province) registered with the Generalitat Valenciana, and your apartment must meet the décret regional habitability requirements. Tax-wise: rental income is filed quarterly via modelo 210 at 19 % on net (EU resident · deductions allowed: cleaning between guests, platform fees, electricity, IBI, community fees, depreciation). The Costa Blanca municipalities most-asked about — Torrevieja, Benidorm, Calpe, Jávea — have tightened on illegal short-lets in 2024-2025, so file the VT before listing.

Recent regulatory changes affecting you

Two trends to watch in 2025-2026: (1) the Andalusian and Madrid 99 % ISD bonificación for groups I-II is now fully consolidated and survived constitutional review, so German heirs benefit reliably; (2) the Beckham Law extension to remote workers under Ley 28/2022 has clarified that EU citizens qualify for the same 24 % flat rate as non-EU — relevant if you relocate to Spain to work remotely for a German employer.

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