Taxation of non-residents in Spain – IRNR and Form 210
A person who is not tax resident in Spain may still have Spanish tax obligations where they receive Spanish-source income or own certain assets in Spain. This is particularly common for owners of Spanish holiday properties.
Property kept for personal use
Non-resident owners of certain urban properties can be subject to an imputed property income even where the property is not rented.
The tax base is generally derived from the cadastral value using, depending on the circumstances, an imputation percentage of 1.1 or 2 per cent before the applicable IRNR tax rate is applied.
Tax rates
For many forms of income subject to the general IRNR rate, residents of EU Member States and certain EEA States are currently taxed at 19 per cent. For other taxpayers the general rate is normally 24 per cent.
Specific rates apply to certain categories of income.
Rental income
Rental income from Spanish property can be subject to IRNR. The treatment of deductible expenses depends, among other matters, on the taxpayer's State of residence.
Form 210
Form 210 is used, among other cases, for imputed property income, certain rental income and gains from the disposal of Spanish property. Filing deadlines depend on the type of income being declared.
How we can help
We prepare IRNR and Form 210 returns and advise non-resident property owners on private use, letting and sale.