Spain's Non-Resident Income Tax (IRNR / NRIT): Complete Guide for Property Owners and Investors
If you are not a Spanish tax resident but earn income from Spanish sources — property rental, capital gains, dividends, or employment — you are subject to Spain's Non-Resident Income Tax (IRNR). This guide explains everything you need to know.
This article is for general informational purposes only and does not constitute legal or tax advice. Tax laws and their application depend on individual circumstances and change frequently. The case studies presented are illustrative only and have been anonymised. Please consult a qualified tax lawyer before taking any action. Jacob Salama · internationaltaxlegalspain.com · Bar Nº 11.294 ICAMálaga.
What Is Spain's Non-Resident Income Tax (IRNR)?
The Impuesto sobre la Renta de No Residentes (IRNR), also referred to in English as the Non-Resident Income Tax (NRIT), is the Spanish tax levied on individuals and legal entities that are not tax resident in Spain but receive income from Spanish sources.
Unlike the broad IRPF (which taxes Spanish residents on worldwide income), IRNR only taxes Spanish-source income. The definition of "Spanish-source" is defined by the Spanish Non-Residents Income Tax Act (LIRNR) and, where a Double Tax Agreement applies, by the specific provisions of that treaty.
Who Is Subject to IRNR?
IRNR applies to:
Non-resident individuals who own Spanish real estate, receive dividends from Spanish companies, earn capital gains from Spanish assets, or perform work in Spain;
Non-resident companies without a Permanent Establishment in Spain that receive Spanish-source income;
Non-resident companies with a PE in Spain — although these are taxed more like Spanish companies.
Key Categories of Spanish-Source Income and Their Tax Treatment
1. Rental Income from Spanish Property
Non-resident property owners who rent out their Spanish properties must declare and pay IRNR quarterly:
EU/EEA residents: Can deduct allowable expenses (mortgage interest, maintenance, management fees, insurance, depreciation) from gross rental income. The net income is taxed at 19%.
Non-EU residents: Cannot deduct expenses (since a 2023 ECJ ruling partially challenged this, the position is evolving). Taxed at 24% on gross rental income.
Quarterly returns (Modelo 210) must be filed within the month following the end of each quarter in which rental income is received.
2. Capital Gains on Spanish Real Estate
When a non-resident sells Spanish real estate, several taxes arise:
IRNR on the capital gain: The gain (sale price minus acquisition cost, adjusted for expenses and inflation in some cases) is taxed at 19% for EU/EEA residents and 24% for non-EU residents (subject to DTA provisions).
Withholding by the buyer: The buyer of Spanish real estate from a non-resident is required to withhold 3% of the sale price and pay it directly to the STA as a deposit against the seller's IRNR liability. The seller can claim a refund if the actual tax liability is lower than the 3% withheld.
Municipal capital gains tax (plusvalía municipal): A separate local tax on the increase in cadastral value of urban land is also due to the municipality. Following a Constitutional Court ruling in 2021, the plusvalía cannot be charged if there was no real increase in land value.
3. Imputed Income on Vacant Properties
Even if a non-resident's Spanish property is not rented out, Spain imputes notional income from it. This imputed income is 1.1% of the cadastral value (2% if the cadastral value has not been revised in the last 10 years) and is taxed at the applicable IRNR rate. Annual Modelo 210 returns must be filed for this imputed income, with the deadline being 31 December of the year following the relevant tax year.
This obligation catches many non-resident property owners off guard, as they assume they have no Spanish tax obligations simply because they do not rent out their property.
4. Dividends from Spanish Companies
Dividends paid by Spanish companies to non-resident individuals are subject to a 19% withholding tax (or a reduced DTA rate — many treaties reduce this to 5%, 10%, or 15%). The dividend withholding is typically the final tax — no further return is required if the full treaty rate was applied at source.
5. Employment Income (Remote Work in Spain)
As discussed in our post on tax residency conflicts, employment income earned while physically working in Spain is Spanish-source and subject to IRNR. For non-residents spending fewer than 183 days in Spain, and where the employer is not Spanish, the applicable DTA will determine whether Spain has the right to tax. If it does, the rate is typically 24% for EU/EEA residents or the DTA rate for others.
Filing Obligations for Non-Residents
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Modelo 210 – Rental
Filed quarterly (by 20th of January, April, July, October) for each quarter in which rental income was received.
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Modelo 210 – Imputed
Filed annually by 31 December of the following year for vacant properties. One return per property.
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Modelo 210 – Capital Gains
Filed within 3 months of the sale of Spanish real estate (after the buyer's 3% withholding). Used to calculate the actual tax and claim any excess withholding refund.
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NIE Required
All non-resident taxpayers in Spain must have a Spanish tax identification number (NIE — Número de Identificación de Extranjero) to file returns and register property transactions.
Common Mistakes by Non-Resident Property Owners
Not declaring imputed income: Many owners are unaware of the imputed income tax on vacant properties and only discover it when selling — at which point interest and penalties have accumulated.
Claiming the wrong expense deductions: Non-EU residents cannot deduct expenses the same way EU residents can. Filing as an EU resident when you are not can lead to significant adjustments on inspection.
Ignoring the 3% withholding on sale: If the buyer does not correctly apply the 3% retention, the seller (not the buyer) is ultimately liable for the IRNR.
Missed deadlines: Each category of IRNR has different filing deadlines. Missing them triggers automatic surcharges of 5%–20% plus interest.
For assistance with IRNR compliance, Modelo 210 filings, and property tax planning for non-residents, contact internationaltaxlegalspain.com.
Frequently Asked Questions
IRNR (Impuesto sobre la Renta de No Residentes) is Spain's Non-Resident Income Tax. It applies to individuals and companies that are not Spanish tax residents but receive income from Spanish sources — including rental income, capital gains from Spanish assets, dividends from Spanish companies, and employment income earned in Spain.
EU/EEA residents can deduct allowable expenses and pay 19% on net rental income. Non-EU residents cannot deduct expenses and are taxed at 24% on gross rental income (though this rule is under review following ECJ case law). Returns are filed quarterly using Modelo 210.
Yes. Spain imputes a notional income of 1.1% (or 2%) of the cadastral value annually on vacant properties owned by non-residents. This imputed income is taxed at the applicable IRNR rate. Modelo 210 must be filed by 31 December of the following year.
When a non-resident sells Spanish real estate, the buyer is legally required to retain 3% of the sale price and pay it directly to the Spanish Tax Administration as a deposit against the seller's capital gains tax liability. The seller then files a Modelo 210 for the actual gain and can claim a refund if the withholding exceeded the actual tax.
Capital gains from Spanish real estate are taxed at 19% for EU/EEA residents and 24% for non-EU residents, subject to the provisions of any applicable Double Tax Agreement. The gain is calculated as the difference between the sale price (less selling costs) and the acquisition price (plus acquisition costs).
Yes. A NIE (Número de Identificación de Extranjero) is the Spanish tax identification number required by all non-Spanish nationals for any transaction with tax implications in Spain — including property purchases, sales, rental registration, and IRNR filings. Non-EU nationals may need to obtain the NIE through the Spanish consulate in their home country.
Get Expert Advice on Your Specific Situation
Every international tax case is different. Book a consultation with Jacob Salama, specialist in international taxation for expats and non-residents in Spain.
