Spanish Non-Resident Tax (IRNR) Calculator & Legal Advice in London & Spain
Spanish Non-Resident Tax (Impuesto sobre la Renta de No Residentes) is a Spanish income tax payable by non-residents of Spain who own a property. It is a legal requirement that the tax return is submitted and is applicable whether the property is rented out or not.
How do I know if I am I liable for Spanish Non-Resident Tax?
If you are a non-resident and own a property that is for personal use and not rented you must submit the return.
If the property is rented and you are receiving an income, you must submit an income tax return.
You can use our online Spanish Non-Resident Tax calculator to help you to do this yourself or contact our expert Spanish tax lawyers for a quote on +44 (0)207 936 9668 or complete our online enquiry form.
How is the tax calculated?
The tax is calculated on the cadastral value of the property (valor catasral), the equivalent to the UK rateable value. You can find your cadastral value on your council tax invoice (IBI/Suma).
Currently, the tax is calculated at 1% of the cadastral value and then 24% of this figure. For example, a property with a cadastral value of 100,000€, tax is calculated at 1% of 100,000€ (being 1,000€), then 24% of 1,000€ = 240€ the tax payable.
If the property is jointly owned, two separate returns must be submitted for each owner and who are responsible for 50% of the total tax due.
The tax year for IRNR is from January to December each year. By law, the deadline to submit the payment is 31 December of the following year. For example, for the tax year of 2022, the submission must be made on or before 31 December 2023. Any late submission or late payment will incur interest and late payment penalties.
Submitting the non-resident tax return is a legal requirement for any non-resident who owns a property in Spain and that is not rented out. The Spanish tax authorities consider that even where no income is earned the property is still classed as a benefit and therefore income tax is due.
As a registered owner of a property, it is your responsibility to ensure that the tax return is submitted and payment made. Any unpaid taxes can be pursued by the Spanish authorities to recover the amounts due. Actions taken can include the freezing of Bank accounts and legal proceedings to recover funds
There is a limitation period of 4 years following which the Spanish authorities will not investigate payments due. However, problems will arise should you wish to sell the property as all unpaid taxes will become due and identified at the point of sale. In addition, it will not be possible to claim back the 3% withholding tax paid at the time of the sale as this will be used to settle taxes that are due on the property.