As a general rule, if you have stayed in Spanish territory for less than 183 days during the calendar year and your economic interests are not centered in Spain, you will be considered as a Non-Tax Resident.
As such, you will only be subject to tax for income obtained in Spanish territory, without prejudice to provisions included in double taxation agreements signed with Spain.
What income is taxable with respect to Income Tax of Non-Residents (IRNR) in Spain?
Below we detail a few of the incomes that constitute a taxable event with respect to Income Tax of Non-Residents in Spain:
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Earnings from work when derived, directly or indirectly, from work undertaken in Spanish territory.
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Pensions and other similar benefits, when they derive from work undertaken in Spanish territory or when they are paid by a person or entity residing in Spanish territory or a permanent establishment located therein.
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Dividends and other returns derived from participation in the equity of entities resident in Spain.
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Interest and other returns obtained from the assignment to third parties of capital paid by persons or entities residing in Spanish territory or by permanent establishments located therein.
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The levies or royalties paid by persons or entities residing in Spanish territory or by permanent establishments located therein.
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The income derived, directly or indirectly, from real estate located in Spanish territory or from rights related thereto.
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Income imputed to taxpaying individuals who own urban real estate located in Spanish territory not affected by economic activities.
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Capital gains when derived from securities issued by persons or entities residing in Spanish territory or from other personal property or real estate located in Spanish territory.
What type of tax is applied to the returns?
General rules
In general, the full amount of the returns will be subject to a fixed rate of 24%. However, the tax rate will be 19% in the case of taxpayers residing in another Member State of the European Union or the European Economic Area.
At this point it is important to highlight that only taxpayers resident in a member state of the European Union or the European Economic Area, may apply deductible expenses to their returns, provided that they prove that they are directly related to the income obtained in Spain.
Special rules
As an exception, the tax rate applicable to some returns will be 19%:
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Dividends and returns derived from participation in the funds of entities.
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Interest and income derived from the assignment of capital to third parties.
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Capital gains that become apparent on the occasion of transfers of assets.
Pensions and passive assets received by non-residents in Spanish territory, independent of the person who has generated the right of the payment to be made, will be taxed according to the following progressive rate:
If you need more information, contact our global mobility experts.
Practical cases of income obtained by a non-tax resident
- A worker, of Colombian nationality, works in Spanish territory for a Spanish company for four months, receiving 8,000 euros and contributing to Social Security 1,004 euros (not deductible).
Base: 8,000 euros; rate: 24%; payment: 1,920 euros (Earnings from work).
- A worker, of German nationality, works in Spanish territory for two months, receiving 4,000 euros and contributing 502 euros to Social Security (deductible).
Base: 4,000 - 502 = 3,498 euros; rate: 19%; payment: 664.62 euros (Earnings from work).
- A person residing in the United States owns an apartment in Malaga for their own use during vacation periods. Its revised cadastral value is 90,000 euros.
Base: 1.10% × 90.000 euros = 990 euros; rate: 24%; payment: 237,6 euros (Tax on real estate).
- A person residing in Australia owns an apartment in Santander with a revised cadastral value of 50,000 euros, which has been leased as a home for 6 months for 1,000 euros per month.
Base: 1.10% × 50,000 euros = 550 euros; 6/12 months = 275 euros; rate: 24%; payment: 66 euros (Tax on real estate).
Base: 1,000 euros × 6 = 6,000 euros; rate: 24%; payment: 1,440 euros (Return on real estate).
- Mr A.M. is resident in France and acquired an apartment in Benidorm for the amount of 120,000 euros on January 1, 2011. On December 31, 2018 he sold the apartment for 200,000 euros.
Base: 80,000 euros (200,000 - 120,000); rate: 19%; payment: 15.200 euros (Capital gains).
Submission deadlines
At this point it is important to note that a statement must be submitted for each return obtained in Spain, through Form 210.
The post Tax Obligations of a Non-Resident in Spain gives more details of submission deadlines.
