What is Non-Resident Income Tax in Spain?
If you own property in Spain but live abroad, you have probably heard of the **Non-Resident Income Tax (Impuesto sobre la Renta de No Residentes – IRNR)**. This tax is one of the main obligations for individuals who are not residents in Spain but have economic interests in the country, such as owning real estate. Here is everything you need to know.
Who must pay the Non-Resident Income Tax?
The **IRNR** applies to all individuals who:
- Own property in Spain but reside in another country.
- Rent out their property or use it as a second home.
Even if you do not rent your property and it remains empty, you are subject to a form of tax based on the “imputed income” (rendimiento imputado) of the property.
How is the tax calculated?
- For rental income:
If you rent out your property, you must declare the income obtained. The tax rate depends on your residency:- Residents of EU/EEA countries: 19% on net income (after deducting certain expenses).
- Residents of other countries: 24% on gross income (no deductions).
- For empty properties:
If the property is not rented out, the tax is based on an “imputed income,” calculated as a percentage of the cadastral value:- Imputed Rate: 1.1% or 2%, depending on whether the cadastral value has been updated.
- Tax Rate: Same as for rental income.
When and how is it paid?
- The tax is calculated annually, but it can be paid quarterly in the case of rental income.
- You must submit **Form Modelo 210** to the Spanish Tax Agency (Agencia Tributaria).
- The payment deadlines are:
- For **rental income**: Within 20 days after the end of each quarter.
- For **imputed income**: Until December 31st of the following year.
Why is compliance important?
Failure to pay the **Non-Resident Income Tax** can result in fines and penalties. Furthermore, if you plan to sell your property in the future, the Tax Agency will verify compliance with this tax before processing the sale.
Get help with your tax obligations
Navigating the Spanish tax system as a non-resident can be complicated, but you do not have to do it alone. At Legal Help Services, we specialize in helping non-residents comply with their tax obligations efficiently and stress-free.
Contact us today to find out how we can assist you with your **Non-Resident Income Tax** declarations and other legal requirements in Spain.
Visit us at: Legal Help Services – Consultancy in Orihuela Costa
email: gestiones@legalhelpservices.es
phone: +34 966 940 650
