Complete Guide to Non-Resident Income Tax (IRNR)

A deep dive into the details of IRNR, from determining tax residency to double taxation treaties and Form 210.

1. Determining Tax Residency: Resident or Non-Resident?

Before dealing with IRNR, it is crucial to determine your status. The Personal Income Tax Law establishes that an individual is a tax resident in Spain if **any** of the following circumstances apply:

  • They spend more than 183 days in Spanish territory during the calendar year.
  • The main hub or base of their activities or economic interests is in Spain, directly or indirectly.
  • Their non-legally separated spouse and minor children habitually reside in Spain (this is a rebuttable presumption).

If you do not meet any of these criteria, you will be considered a non-resident for tax purposes in Spain and will be taxed under IRNR for your Spanish-source income.

2. Income Taxed under IRNR

IRNR is levied on various types of income obtained in Spanish territory. The most common include:

  • Real Estate Income:
    • From rentals: the gross income received. EU/EEA residents can deduct related expenses.
    • From imputed income: for the mere ownership of unrented urban properties that are not the main home. It is calculated as a percentage of the cadastral value.
  • Employment Income: Salaries or pensions, subject to the provisions of double taxation treaties.
  • Dividends and Interest: from Spanish sources.
  • Capital Gains: from the sale of assets located in Spain (real estate, shares, etc.).

3. Tax Rates and Tax Base

The general tax base is the total income obtained, with no possibility of offsetting different types of income. The key tax rates are:

  • General Rate: 24% (for non-EU/EEA residents). This applies to most employment and rental income.
  • Rate for EU/EEA Residents: 19%. This applies to rentals (allowing for expense deductions), dividends, interest, and capital gains.

Important: Double Taxation Agreements (DTAs) signed by Spain take precedence over domestic law and can reduce or eliminate taxation in Spain.

4. Formal Obligations: Form 210

The main obligation is filing the IRNR return, which is mostly done through **Form 210**. Filing deadlines are crucial and depend on the type of income:

  • Imputed income from real estate: Throughout the entire following calendar year (e.g., 2024 income is filed in 2025).
  • Rental income: Quarterly if tax is due. Annually if it's a refund or zero-rated.
  • Capital gains (property sale): Generally, 3 months after the buyer's 1-month deadline to pay the 3% withholding.
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