• Agencia Inmobiliaria, Asesoria en El Albir - Real Estates Costa Blanca By Grupo Global Gest
  • Avenida L'ALBIR, 66-68 Edif.Alpisol Local3 Portal 3.
  • 03581 El Albir / L'Albir (Alicante)
  • + 34 673 689 263
  • + 34 966 814 555
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TAXES FOR NON-RESIDENTS IN SPAIN / Model 210 - Model 211

TAXES FOR NON-RESIDENTS IN SPAIN / Model 210 - Model 211

11 01 - 2023

Taxes For Non Residents in Spain

Among the most common direct and indirect taxes paid in Spain, there is a lesser-known type, but of great importance for both foreigners in our country and Spaniards living abroad: taxes for non residents in Spain.

TAXES FOR NON-RESIDENTS IN SPAIN / Model 210 - Model 211

When is a person considered a non-resident in Spain?

A person belongs to the category of non-resident in Spain if they live less than 183 days a year in the country and do not have a tax residence here. In these cases the taxation system is different and includes a tax on income and capital gains obtained in Spanish territory. However, there are other criteria to be taken into account in order to be considered a resident or non-resident, such as the main place of business or where the family nucleus is located.

What taxes do non-residents pay in Spain?

A non-resident who owns urban property in Spain will be subject to non-resident income tax and a local tax, the Impuesto sobre Bienes Inmuebles (property tax).

In addition, he or she would be subject to Wealth Tax by real obligation.

In the same way that the population resident in Spain is subject to Personal Income Tax (IRPF), those who do not reside in our country must declare Non-Resident Income Tax (IRNR). This declaration, which depending on the type of income and country of residence applies tax rates of between 19% and 24%, "includes income obtained in Spain through economic activities, income from real estate capital, ownership of a second home and pensions".

In the case of our clients it is mainly the taxation of the acquisition of a second home. Well, in the case of renting out the property it is obvious that you have to pay tax on it, you make a profit, but if you only enjoy it yourself, you also have to pay tax on the property for a presumed income, this means that it is an income for the purposes of the income tax return that has to be declared for having an empty property that is not the habitual residence. The tax authorities consider that any property that is not the main residence is liable to generate an income, and this also includes garages.

In some cases, taxes derived from the activities must be paid both in Spain and in the country of residence. In this respect, Spain has signed double taxation agreements with several countries, a list of which is published by the Tax Agency.

In addition to the IRNR, other taxes for non-residents can be the Impuesto sobre Bienes Inmuebles (IBI), which is a municipal tax, the Impuesto sobre Transmisiones Patrimoniales(ITP) and the Impuesto sobre el Patrimonio (IP) on assets located in Spain that are worth more than 700,000 euros.


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What taxes would I pay if I rented my property?

We now focus on the differences in the taxation of rental income between residents in Spain, the EU and outside the EU.

We can see how housing prices on the Spanish coast are changing. Due to the pandemic and the rise of teleworking, there is a huge increase in the demand for people wanting to settle in coastal areas, and not only in the summer season. And this is attracting both private individuals looking for just that and investors who see that there is a growing demand. Many of these investors are foreigners who are not tax resident in Spain (whether they are companies or individuals) and are acquiring these properties for rental purposes. This rental income will be taxed differently depending on the country of residence of the lessor, so in the case of a non-resident investor in particular, these aspects should be made clear before carrying out any transaction.

Focusing on individuals and referring only to the taxation of profits from renting a property:

  • If the lessor is resident in Spain and is taxed under IRPF (personal income tax), he will be able to deduct the expenses inherent to the same (consumption if he pays them, community, IBI...).
  • If the lessor is resident in another EU country, the income from the rental of the property in Spain will be taxed under IRNR (non-resident income tax) at a fixed rate of 19%. He will be able to deduct the expenses inherent to this rental, but he does not have any reduction on the income.
  • The lessor is resident in a non-EU country. In this case he will be taxed on the rental income in Spain by IRNR (non-resident income tax) at a flat rate of 24% and will not be able to deduct any expenses.

There is a lot of controversy on this issue and it can be understood that Spain discriminates fiscally depending on the place of residence and this could go against the universal principles of equality, although for the moment the European Commission has not pronounced itself in the case of Spain (it has in the case of other countries that did the same).


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Real Estates Costa Blanca is the leading choice for real estate on the Costa Blanca. With over 20 years of experience, we offer a wide range of properties in Albir, Alicante, Altea, and more.

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Avenida L'ALBIR, 66-68 Edif.Alpisol Local3 Portal 3.
03581
El Albir / L'Albir (Alicante)
  • Agencia Inmobiliaria, Asesoria en El Albir - Real Estates Costa Blanca By Grupo Global Gest
  • Avenida L'ALBIR, 66-68 Edif.Alpisol Local3 Portal 3.
  • 03581 El Albir / L'Albir (Alicante)
  • + 34 673 689 263
  • + 34 966 814 555

© Agencia Inmobiliaria, Asesoria en El Albir - Real Estates Costa Blanca By Grupo Global Gest 2024

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