The IRNR or Non-Resident Income Tax applies to individuals and companies who are not resident in Spain for tax purposes, but who receive income or own property in the country. Many people are unaware of this tax and forget to declare it, which is risky.

IRNR target audience

Non-residents, i.e. any person or entity whose tax residence is not in Spain (they spend less than 183 cumulative days per year there).

What income is subject to IRNR?

Rental income, capital gains on real estate, dividends, interest, royalties, income from occasional professional activities.

What is the IRNR tax rate?

IRNR is not progressive; there are two rates:

• 24% for residents of non-EU countries or outside the European Economic Area.
• 19% for EU/EEA residents.

Declared gross income is subject to taxation without the possibility of deductions for non-EU residents. Residents of EU or EEA countries are entitled to certain deductions (e.g.: costs of supplies, personnel and procurement related to economic activity on Spanish soil and the special tax on immovable property for legal entities - Gravamen Especial sobre Bienes Inmuebles de Entidades No Residentes).

How to declare and pay IRNR

1. Modelo 210 Please note: do not complete the Modelo 100, as this is for Spanish tax residents. The Modelo 210 must be submitted quarterly or annually, depending on the type of income.
2. When to declare your IRNR? Quarterly returns are due by April 20, July 20, October 20 and January 20 of the following year. Annual declarations must be made between January 1 and 20 of the year following the year in which the income is generated.
3. Payment can be made directly online via the Agencia Tributaria portal, or by other means offered by the Spanish tax authorities.

Risk of non-compliance with tax obligations

• You risk fines and interest if you fail to declare or pay on time.
• Appeals: if you disagree with the Spanish tax authorities, you can lodge an administrative appeal.

 Terreta Spain practical tips

1. Consult a tax expert: the most important piece of advice in our view, don't hesitate to consult a tax expert who specializes in international taxation. Every situation is unique. Contact our teams to be put in touch with competent professionals.
2. Documentation: keep all supporting documents that shed light on your situation, such as rental contracts, bank statements, etc. This will make it easier for you to file your tax return and justify your income or any recourse, should the need arise.
3. Tax treaties: don't forget, Spain has signed tax treaties with some forty countries. These avoid double taxation. Click here for a list of the countries concerned.

FAQ : Non-Resident Income Tax (IRNR)

What is IRNR?

IRNR is a tax that applies to individuals and entities that are not resident in Spain but receive income from Spanish sources. Any non-resident receiving income in Spain, such as rent, dividends or capital gains, must pay this tax.

How do I declare my income?

Form 210 must be completed and submitted on time, either quarterly or annually, depending on the nature of your income.

What are the consequences of not declaring?

Financial penalties may apply, as well as an increased risk of tax audit by the Spanish authorities.

What is the IRNR rate?

The figure is 19% for EU residents and 24% for non-EU residents.

Source 

Agencia Tributaria