Non-Resident Income Tax in Spain (IRNR) is the tax levied on income obtained in Spanish territory by individuals or legal entities who are not tax residents in Spain. This tax is particularly relevant for foreign citizens who own property in Spain or obtain income from Spanish sources.
Who is required to pay it?
All non-tax residents who obtain income in Spain are subject to IRNR. In the real estate context, this includes, among others:
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Owners of property in Spain, even if it is not rented out.
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Owners who rent out their property and obtain income.
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Non-residents who sell a property in Spain.
This obligation applies regardless of the taxpayer’s nationality.
When is it paid and how is it declared?
The method and timing of payment depend on the type of income obtained: if the property is not rented, the tax is declared annually; if the property is rented, the tax is declared based on the income received; and in the case of a sale, a withholding tax is applied and must be regularised afterwards.
Tax returns are filed using the official forms of the Spanish Tax Agency, and in many cases it is necessary to analyse the applicable tax regulations and double taxation treaties.
How can our firm help?
Our firm regularly advises non-resident clients on complying with their tax obligations in Spain. We provide, among other services, tax advice, preparation and filing of tax returns, representation before the Spanish Tax Agency by power of attorney, and review of previous tax positions.
For further information on Non-Resident Income Tax in Spain, you may contact our law firm via www.delgado-vila.com or visit us at our offices in Málaga, Torrox-Costa and Mijas-Costa.