What is the non-resident income tax and how to present it?
When you own a property in Spain, you need to comply with all tax payments: IBI, Basura and Non-Resident Income tax. The non-resident income tax, or IRNR (Impuesto sobre la Renta de No Residentes) is a tax that you have to pay on your Spanish income or when you own a property in Spain.
For a property owner, the non-resident income tax declaration, form 210 (modelo 210), must be presented to the tax office yearly or quarterly depending on if you’re renting or not your property in Spain.
Because we know that it is not always easy to correctly fill the form 210 and to understand how to make the accurate calculation of the tax to be paid, Horizon Property Spain helps you with this process.
We organise for you the Non-resident tax declaration and avoid any tax issue in the future.
Frequently asked questions
Do I have to pay the Non-Resident Income Tax?
If you are non-resident in Spain (you will be considered as a non-resident when you live less than 183 days a year in Spain) you will have to pay a non-resident income tax in the following cases:
- when you have some income in Spain (professional or rental income)
- when you own a property in Spain (even if you don’t rent it)
- when you sell a property in Spain with capital gain
We can help you with your tax declaration whatever your situation
I don’t rent my property in Spain, do I have to present the form 210 and pay the non-resident tax?
Yes. The mere fact to own a second home in Spain is considered as a taxable benefit. Even if it doesn’t generate any direct income it is considered that it generates an imputed income.
How do I declare and pay my non-resident income tax?
To make your declaration, you need to fill up and present the form 210 (Modelo 210). You can do it by yourself if you know exactly how to declare and calculate the tax. You must present the form in person or can do it online if you have a digital certificate. You can also ask a representative, such as your lawyer, that will make it for you but often at a high cost. Horizon Property Spain takes care of all this process for you offering you the best conditions, contact us for more information. Contact us for more information.
When do I have to present my non-resident income tax declaration (Modelo 210)?
If you do not rent your property in Spain, you must declare your non-resident tax before the 31st of December of the year following the tax year (for example you must present your form 210 for the year 2018 before end of 2019).
I you rent your property, you must declare quarterly and present your Form 210 within the first 20 days of the months following each quarter (April, July, October and January).
I own a property together with my husband/wife, do we have to make two declarations?
Yes, regardless your situation, each owner of a property must present a Modelo 210 and pay the tax separately. The tax will be calculated on the share each one owns.
How is calculated the non-resident income tax?
I you are non-resident in Spain, your income generated on the Spanish territory will be taxed at 19% if you are resident in one of the EU countries, Norway or Iceland, and at 24% if you are not EU citizen.
If you rented your property in Spain:
– For the period in which your property was rented, the tax will be calculated on your rental income. If you are resident in a EU country, Norway or Iceland, you will be able to deduct from your rental income some costs related to the property and its management. If you are not a EU citizen, you won’t have the right to any deduction.
– For the period in which your property was not rented, calculation of the tax will be made on the imputed income, based on the cadastral value of the property.
If you didn’t rent your property:
The non-resident income tax calculation will be based on the cadastral value only.