If you own property in Spain but are not a Spanish tax resident, you are subject to Non-Resident Income Tax (Impuesto sobre la Renta de No Residentes – IRNR). This tax applies to all non-residents who own property, rent out a home, or sell real estate in Spain.
At Platinum Legal Spain, we offer professional tax advisory services to ensure you comply with Spanish tax laws.
When Do I Have to Submit the Tax Return for Non-Residents (IRNR)?
The deadline for submitting your Non-Resident Income Tax return (Modelo 210) depends on whether the property is rented out or used for personal use:
- If the property is NOT rented → The IRNR must be filed annually by December 31 of the following year.
- If the property IS rented → As of 2024, rental income tax is now filed annually instead of quarterly. The tax return must be submitted between January 1 and January 20 of the following year.
📌 Important: For rental income earned before January 1, 2024, the previous quarterly filing system still applies.
How Is the Annual Tax Calculated?
If you do not rent out your property, Spain applies “imputed income tax”, meaning the government assumes you generate income simply by owning the property.
- The tax base is 2% of the cadastral value (or 1.1% if the cadastral value has been updated in the last 10 years).
- EU/EEA residents pay 19% tax.
- Non-EU residents pay 24% tax.
📌 Example Calculation: If your property’s cadastral value is €150,000:
- 1.1% of €150,000 = €1,650 (imputed income).
- 19% tax (EU residents) = €313.50 owed annually.
- 24% tax (Non-EU residents) = €396 owed annually.
How Does the Situation Change if I Rent Out My Property?
- Rental income is taxed at 19% (EU/EEA) or 24% (Non-EU).
- EU/EEA residents can deduct expenses (e.g., mortgage interest, utilities, maintenance).
- Non-EU residents cannot deduct expenses and must pay tax on gross rental income.
📌 Example Calculation for an EU Property Owner:
- Monthly rental income: €1,000
- Deductible expenses: €400
- Taxable amount: €600
- 19% tax = €114/month or €342/quarter
What Information Do I Need to Supply for You to Prepare My Tax Returns?
To complete your IRNR tax return, we require:
- A copy of your NIE (Número de Identificación de Extranjero).
- Cadastral value of the property (from the IBI receipt).
- Rental income details (if applicable).
- Proof of deductible expenses (EU residents only).
- Bank details for tax payments or refunds.
We handle all the paperwork, ensuring your Modelo 210 is filed accurately and on time.
Can I Deduct Community Fees or Other Costs Related to My Property?
EU/EEA residents can deduct property-related expenses, including:
- Community fees.
- Local property taxes (IBI).
- Mortgage interest.
- Repairs and maintenance.
Non-EU residents cannot deduct these expenses and must pay tax on gross income.
Do I Need to Be Registered for Spanish Tax to Submit Returns?
No, non-residents are not required to register as Spanish taxpayers. However, you must:
- Have a Spanish NIE number.
- File Modelo 210 for IRNR annually or quarterly.
- Pay any taxes owed to avoid legal issues when selling or inheriting property.
In the Case of Joint Ownership, Do We Need to Submit More Than One Return?
Yes, each co-owner of the property must file a separate Modelo 210 tax return.
- If you co-own a property with a spouse or relative, each owner must declare their percentage of ownership and pay tax accordingly.
📌 Example: If two owners share a property 50/50, each files a return for 50% of the imputed or rental income.
I Have Just Realised I Did Not Submit My Tax Return for Last Year, What Can I Do? What Are the Repercussions?
If you missed your IRNR deadline, you can still file a late tax return.
Penalties apply based on how late the payment is:
- Up to 3 months late → 5% surcharge.
- 3-6 months late → 10% surcharge.
- 6-12 months late → 15% surcharge.
- Over 12 months late → 20% surcharge + interest.
📌 If unpaid taxes are discovered by the authorities, additional fines may apply. It’s best to file immediately to minimise penalties.
I Am Selling My Spanish Property and I Have Heard That If I Have Not Paid the IRNR, the Tax Office Can Claim It When I Declare the CGT (Capital Gains Tax), Is That Correct?
- Yes. Before a property sale, the Spanish tax office checks whether all IRNR obligations have been met.
- Unpaid IRNR taxes can be deducted from your Capital Gains Tax (CGT) calculations.
- If IRNR debts exist, the buyer’s notary may withhold funds from the sale to cover outstanding taxes.
📌 Solution: Before selling, contact us to ensure all past IRNR tax returns are filed and paid.
If I Have Inherited a Property, Do I Have to Pay Non-Resident Income Tax (IRNR)?
- Yes, if you inherit a property in Spain and keep ownership, you must pay IRNR on imputed income.
- If you rent out the inherited property, rental income tax (IRNR) applies.
- If you sell the inherited property, Capital Gains Tax (CGT) is due on the increase in property value.
📌 Inheritance Tax (Impuesto de Sucesiones) may also apply. We provide expert legal assistance to ensure compliance.
How Platinum Legal Spain Can Help with Your Non-Resident Tax in Spain
Platinum Legal Spain provides expert tax advisory services to non-resident property owners, ensuring full compliance and tax efficiency.
- Tax Filing & Compliance – We handle Modelo 210 filing for both imputed and rental income.
- Deductions & Tax Savings – We identify legal deductions to reduce your tax burden.
- Late Filing & Tax Corrections – We assist in filing missed returns and resolving tax disputes.
- Property Sales & Inheritance – We provide full legal support for tax compliance when selling or inheriting property.
📩 Contact us today for a consultation and let our expert tax lawyers and tax advisors manage your non-resident tax obligations in Spain!
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Frequently Asked Questions About Non-Resident Tax (IRNR) in Spain
Do I need to pay IRNR if I don’t rent out my Spanish property?
Yes. Even if you do not rent out your property, Spain applies imputed income tax based on the cadastral value of the property. This is reported annually using Modelo 210, and the tax rate depends on whether you are an EU/EEA resident (19%) or a non-EU resident (24%).
What happens if I don’t pay my Non-Resident Tax (IRNR) in Spain?
Failure to pay IRNR can result in penalties, late fees, and legal consequences. If you plan to sell your property, unpaid taxes can be claimed by the Spanish tax office before you receive your proceeds. It is crucial to stay compliant to avoid fines or complications when selling or inheriting property.
Can I deduct expenses from my rental income as a non-resident?
✔ EU/EEA residents can deduct certain property-related expenses, such as mortgage interest, maintenance, and community fees, before paying 19% tax on net income.
❌ Non-EU residents must pay 24% tax on the full rental income, as deductions are not allowed.
How do I declare my non-resident tax in Spain?
- If the property is NOT rented → File Modelo 210 annually by December 31.
- If the property IS rented → From 2024 onwards, rental income tax is filed annually between January 1 and January 20 of the following year.
You can submit your tax return online, through a Spanish tax advisor, or via Platinum Legal Spain, ensuring accuracy and compliance.
📌 If paying by direct debit, the deadline is January 15 to allow processing before submission.
What are the tax implications if I inherit a property in Spain?
Yes, inherited properties are subject to both Inheritance Tax and Non-Resident Income Tax (IRNR). If you keep the property, you must continue filing Modelo 210 for imputed or rental income. If you sell the inherited property, you will also be liable for Capital Gains Tax (CGT).
Why Choose Platinum Legal Spain for Your Non-Resident Tax in Spain?
Navigating Spanish tax laws as a non-resident can be complex, but with Platinum Legal Spain, you’ll receive expert tax advice and seamless tax filing services tailored to your needs.
- Specialised in Non-Resident Taxation – We ensure compliance with IRNR, Capital Gains Tax, and Wealth Tax.
- Effortless Tax Filing – We handle everything, from tax calculations to Modelo 210 submissions.
- Avoid Late Fees & Penalties – We keep you updated on tax deadlines to prevent costly fines.
- Multilingual Legal Team – We assist clients in English, Spanish, French, Dutch, Swedish, and German.
- Full-Service Legal & Tax Support – Whether you’re buying, selling, or inheriting property, we offer comprehensive legal guidance.
📩 Need help with your IRNR tax return? Contact Platinum Legal Spain today for your consultation and let our tax experts handle everything for you!