What is the IRNR in Spain?
All non-resident foreigners in Spain are required to declare to the tax authority (Hacienda) the income (financial, professional, salaries, pensions) they have earned in Spain during the year and/or any property they have purchased. As a property owner, this declaration must be completed whether or not you generate rental income.
What is the taxable base and tax rate for IRNR?
If you have purchased a property as a second residence, whether you use it or not, the taxable base is 1.1% of the cadastral value of the property. In the case of rental income in Spain, the taxable base is the difference between the rental income received and the expenses invested in the property.
The tax rate is similar in both cases. This rate was modified with the Spanish tax reform of 2014:
- 2012 – 2013 – 2014: 24.75%
- until July 2015: 20%
- since July 2015: 19.50%
- 2016: 19%
- 2017: 19%
- 2018: 19%
How to declare the IRNR tax in Spain?
Unlike the Property Tax (IBI), which is collected by the town hall where your property is located, it is your responsibility to calculate, complete, and submit the IRNR tax declaration form each year or each quarter to the Spanish tax office. However, you may appoint a tax representative to handle this process on your behalf.
