Income Tax on Property - Impuesto de la renta de no residentes, declaración ordinaria - IRNR

Income Tax on Property - Impuesto de la renta de no residentes, declaración ordinaria - IRNR

Many non-resident owners of a property in Spain are not aware that they are required to pay this tax regardless of whether the property is rented out or not.

Although you do not earn an income from the property, in the eyes of the Spanish tax authorities you still derive a benefit from owning a property in Spain and therefore have to pay an imputed income tax.

You pay this version of income tax in Spain if the following conditions apply: 

• You do not reside in Spain
• You own property in Spain
• The property is exclusively for personal use and you do not rent it out
• You have no other source of taxable income in Spain

How Is Non-Resident Property Tax Calculated?

The tax is calculated using the cadastral value of the property.  

Tax base: 2% of the cadastral value of the property that you can find on the IBI receipt or 1.1% if the cadastral value has been revised since 1st January 1994. 

Tax rate: Residents of EU, Iceland and Norway 19%

All others 24%

Presented before the 30th June each year.

Example:

Cadastral value of property = €300,000.00

Base 2% = €6,000.00

Tax 19% = €1,140.00