Non-Resident Income Tax in Spain

Non-Resident Income Tax in Spain (IRNR) – What You Really Need to Know

Do you own a second home in Spain but officially live in the Netherlands or Belgium? In that case, the Spanish tax authorities consider you a non-resident. This means you are subject to Non-Resident Income Tax (IRNR).

Many foreign homeowners are not aware that they must pay this tax — even if their property is not rented out. In this article, we explain step by step how the system works, what the rules are, and how to avoid problems.

What is IRNR?

IRNR (Impuesto sobre la Renta de No Residentes) is an annual tax for anyone who owns property in Spain but is not a tax resident in the country. In other words: you officially live in another country but own a property in Spain.

1️⃣ If you only use your property yourself (not rented out)

Even if you only use your home for personal use, you still have to pay tax on a so-called deemed income. The Spanish government considers property ownership as a form of benefit, even if you do not generate rental income.}

This is how it works:

The calculation is based on the valor catastral (the official cadastral value of your property).

Usually 1.1% or 2% of this value is used, depending on when the value was last updated.

Tax is then applied to this amount:
19% for EU residents
24% for non-EU residents

2️⃣If you rent out your property

If you rent your property to holiday guests or long-term tenants, you must pay tax on the actual rental income.

EU residents may deduct certain expenses, such as:

maintenance costs
insurance
property management
mortgage interest
After deducting these costs, tax is paid on the net income:
19% for EU residents
24% for non-EU residents

When and how do you file your tax return?

As a non-resident, you must file a tax return every year before December 31 for the previous calendar year. This is done using form Modelo 210, usually online or through a Spanish gestor (tax representative).

Important to know:
The Spanish tax authorities do not send reminders or invitations. You are responsible for submitting and paying the tax yourself.

If you forget to do this, you may face:

penalties
interest charges
complications when selling your property

In short: you must file every year, even if the property is not rented out.

Why is this important?

Failure to file IRNR can lead to:

penalties and interest on late payments
additional tax assessments for previous years
delays when selling your property

How to avoid surprises

Request the valor catastral of your property from the local municipality.
Make sure your IRNR tax return is filed every year.
Work with a reliable gestor or tax advisor.

At Costavilla, we not only help you purchase your property but also connect you with trusted professionals who can handle your annual tax filing smoothly.

Conclusion

Non-Resident Income Tax (IRNR) is a mandatory tax for anyone who owns property in Spain but does not live there permanently.

Whether you simply enjoy your second home or rent it out occasionally, make sure your annual tax declaration is properly arranged.

Need help with your Spanish tax return?

At Costavilla, we connect you with experienced gestors who ensure everything is handled correctly and without worries.

What is IRNR?

1️⃣ If you only use your property yourself (not rented out)

2️⃣If you rent out your property

When and how do you file your tax return?

Why is this important?

How to avoid surprises

Conclusion

Need help with your Spanish tax return?

We are here to help you

Questions? We're happy to help.

+34 651 75 77 44

Closes daily at 8pm

carla@costavilla.nl

You will receive an answer from me within 24 hours

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