IRNR: Tax on income of non-residents of Spain

Are you a  non-resident of Spain, but you own real estate here? Then this post is for you.

In addition to the IBI (Impuesto sobre Bienes Inmuebles) property tax, which is calculated and deducted automatically annually, you are also required to pay IRNR tax.

IRNR  –  Impuesto sobre la Renta de No Residentes  is a tax on income of non-residents from real estate in Spain.

The difference between taxes is that no one will send a notification about the amount of IRNR and its need to pay, let alone withdraw it automatically. This is the responsibility of the property owner by submitting  Modelo # 210 .

Form # 210 must be filed directly by the owner for each property.


Who is required to submit?

Any natural or legal person who is not a tax resident in Spain and who owns real estate.


What to declare?

– Income from the rental of real estate.

– Imputed income if the property is owned, if it is not rented.

 Return on the sale of real estate.


When to serve?

  •  When selling real estate, you must submit a declaration within 3 months, after one month from the date of transfer of ownership.
  • When renting out, income is declared quarterly, that is:

  – from 1 to 20 April for the 1st quarter;

  – from 1 to 20 July for the 2nd quarter;

  – from 1 to 20 October for the 3rd quarter;

  – from January 1 to January 20 for the 4th quarter.

In this case, EU citizens are subject to a rate of 19% with the ability to include all expenses for the maintenance of real estate in the costs, and for all other 24% on the income received for the reporting period (without the possibility of taking into account the costs).

  • If the  property is not rented out, then in this case Form No. 210 is submitted within a year until December 31, following the calculated one. The estimated base for imputed tax is 24% of 1.1% of the cadastral value and 2% if the revaluation was more than 10 years ago. 

Important: if the property is not rented out all year long, then for the remaining months you will need to submit an imputed income declaration.


What are the risks of late payment or deviation from  IRNR ?

E If you are already a few years, being a property owner does not pay tax, sooner or later it will have to pay for all of the year with penalties and default interest. And it doesn’t matter if it happened out of ignorance or forgetfulness. As the saying goes, “ignorance of the law does not absolve from responsibility.”


By the way, for legal entities located in offshore jurisdictions (the so-called paraísos fiscales by the Spaniards), the rate of imputed income is as much as 3% of the cadastral value! Without the possibility of writing off costs.


If you need advice on this tax, write to us in Direct. We will be happy to help you.

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