Translated with Google translation
What the IRNR in Spain?
All non-resident foreigners in Spain are required to report income (financial, professional, wages, annuities) to the tax centre (Hacienda) they have collected on Spanish territory during the year and/or the real estate they have purchased.
As a landlord this return is to be completed regardless of whether or not you generate rental income.
What tax base and tax rate does IRNR have?
In the case where you have purchased real estate in a secondary residence, whether you return to it or not, the taxable base is 1.1% of the cadastral value of the real estate. In the case of rental income in Spain, the taxable base is the difference between the rental income collected and the fees invested in the property. The tax rate is similar in both cases. This tax rate was modified with the 2014 Spanish tax reform :
- 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?
Contrary to Property Tax (IBI) which is claimed by the town hall of the place where your real estate is located, it is up to you to calculate, complete and submit the IRNR tax return form to the tax centre on an annual or quarterly basis. However, you can appoint a tax representative to undertake this process.