Taxation of

Non-residents

Advise

Impuesto sobre la Renta de no Residentes (IRNR)

The IRNR is a direct tax that taxes the income obtained in Spanish territory by non-resident individuals and entities. Non-resident taxpayers in Spain will have to present the IRNR if They have obtained the following income in Spanish territory:

  • Income from activities carried out in Spanish territory, including economic operations.
  •  Work income if derived directly or indirectly from an activity carried out in Spain.
  •  Dividends and returns from participating in Spanish entities.
  •  The returns on real estate in Spain.
  •  Capital gains derived from securities issued by persons or entities residing in Spain.
  •  Pensions and benefits received from the state while not residing in Spain.
  •  The remuneration of administrators and members of the boards of directors of Spanish entities.

Non-resident taxpayer who owns a property:

If you have non-resident status in Spain and are the owner of any urban property located in Spanish territory, will be taxed by the Property Tax. Income of non-residents and a local tax, the Property Tax Estate. For these purposes, we can find different assumptions:

Property located in Spain rented by a non-resident owner

The non-resident owner must pay tax on the rental income obtained on a quarterly basis and pay the correspondingl IRNR.

Property located in Spain for personal use by the non-resident owner (no rent)

Well, since it is not your habitual residence, just as you are taxed in the Personal Income Tax (IRPF), you will have to pay taxes on imported income (1.1% or 2% of the cadastral value of the property) and pay the corresponding IRNR fee.

In this case, Form 210, Income Tax declaration for non-residents without permanent establishment, will be submitted annually.

Sale of property located in Spain by a non-resident owner

The transaction of the transfer of the property will generate a gain or loss depending on the acquisition and transfer value that will have to be declared through the corresponding Form 210.

In this case, the period for submitting the aforementioned Model will be three months once one month has elapsed from the date of transfer of the property. Likewise, this operation will be subject to retention by the buyer.

Failure to declare the aforementioned tax obligations may lead to the imposition of sanctions by the Tax Agency.

At Caine Asesores we offer advisory services related to the taxation of non-resident taxpayers.

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