If you are a non-resident in Spain but own property, earn income, or have any other economic interest in the country, it is crucial to understand your tax obligations. The Spanish system can be complex, but this guide will help you navigate the most important aspects for the year 2025.
Who is Considered a Non-Tax Resident in Spain?
Before diving into taxes, it's essential to determine if you are indeed a non-tax resident. Generally, you will not be if:
- You spend less than 183 days in Spain during the calendar year.
- Your main center of activities or economic interests is not located in Spain.
- Your spouse and dependent minor children do not usually reside in Spain.
If you meet these criteria, you will be taxed in Spain only on income and assets located or generated in Spanish territory. For more details, consult our guide on Taxes for Non-Residents.
Non-Resident Income Tax (IRNR)
The IRNR is the main tax affecting non-residents. It taxes income obtained in Spain. The most common types of income are:
1. Income from Real Estate
- Rented properties: You must declare the gross rental income. For EU/EEA residents, certain related expenses can be deducted. The general rate is usually 24% (19% for EU/EEA residents).
- Properties for personal use (not rented): A notional income will be imputed to you, calculated as a percentage (1.1% or 2%) of the property's cadastral value. The 24% rate (or 19% for EU/EEA) applies to this imputed income. This is an annual declaration (Form 210).
2. Capital Gains
If you sell a property, shares in a Spanish company, or other assets located in Spain, the gain obtained is taxed under IRNR. The general rate is 19%.
When selling real estate, the buyer is obliged to withhold and pay to the Tax Agency 3% of the sale price as an advance payment of the non-resident seller's tax.
3. Interest and Dividends
Interest from Spanish bank accounts or dividends from Spanish companies are also subject to IRNR, generally at 19%. However, many double taxation agreements establish reduced rates or exemptions.
4. Other Income
Salaries for occasional work, pensions (subject to treaties), etc., may also be subject to IRNR with their specific rules.
For more comprehensive information, we recommend our Complete IRNR Guide.
Wealth Tax (IP)
Non-residents may also be subject to Wealth Tax on assets and rights they own in Spain (real estate, bank accounts, shareholdings, etc.) if their net value exceeds the exempt minimums (generally €700,000, although it varies by Autonomous Community).
- The taxable base is the net value of assets in Spain.
- Progressive rates apply.
- The obligation to file a return arises if, after applying deductions and allowances, tax is due, or if the gross value of assets exceeds €2,000,000.
Local Taxes: IBI and Plusvalía Municipal
If you own real estate in Spain, you will annually have to pay the Real Estate Tax (IBI) to the corresponding town hall. In case of a sale, you might also be subject to the Municipal Capital Gains Tax (Impuesto sobre el Incremento de Valor de los Terrenos de Naturaleza Urbana).
Final Considerations
- Double Taxation Agreements: Spain has signed agreements with many countries to prevent you from paying taxes twice on the same income. It is vital to consult them.
- Tax Representative: In some cases, especially if you earn income without a permanent establishment, it may be mandatory to appoint a tax representative in Spain.
- Deadlines and Forms: Each tax and type of income has its own declaration forms (e.g., Form 210 for IRNR) and filing deadlines.
Taxation for non-residents can be complex. To ensure proper compliance and optimize your situation, we strongly recommend seeking professional advice.
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