Guide: Spanish Income Tax for Non-Residents (IRNR
What is IRNR and who must pay it?
Understanding the IRNR (Impuesto sobre la Renta de no Residentes)
The Impuesto sobre la Renta de no Residentes (IRNR) is a Spanish income tax applied to individuals and companies who do not reside in Spain but earn income within the country. If you own property in the Balearic Islands-or anywhere in Spain-and live abroad, IRNR likely applies to you.
Difference between residents and non-residents
A resident for tax purposes in Spain is someone who spends more than 183 days a year in Spain or whose main economic interests are located there. Non-residents live primarily outside Spain and only pay tax on income sourced from Spanish territory-mainly property-related income.
Types of taxable income under IRNR
Non-residents are taxed on:
- Personal use of property: where the property is not rented out
- Rental income: when the property is leased to tenants
Each scenario carries different rules, deductions, and filing requirements.
Tax obligations for non-resident property owners
Personal use of the property
If your Spanish property is used only by you or your family and is not rented, you must still file an IRNR tax return. The taxable income is not the market value or actual usage but rather a notional amount-typically 2% of the property’s cadastral value (or 1.1% if the value was revised after 1994).
Joint ownership and married couples
In Spain, each property owner is considered a separate taxpayer. So, if you own a property jointly-either with a spouse or others-each co-owner must file their own IRNR return, reporting their portion of the property.
Filing frequency and deadlines
IRNR returns (Modelo 210) must be submitted annually, even if the property generates no rental income. For the 2025 tax year, the deadline is December 31, 2025. Filing is typically done through Spain’s tax authority website.
Rental income for non-residents
IRNR vs. IRPF
IRNR applies to non-residents; IRPF (Impuesto sobre la Renta de las Personas Físicas) applies to residents. If you’re renting out your Spanish property and you live outside Spain, you must declare the rental income under IRNR.
Withholding by Spanish companies
If you rent to a Spanish company, the tenant may withhold the tax on your behalf and submit it directly to the Spanish tax authorities. However, you are still responsible for submitting a proper IRNR declaration.
Deductible expenses for EU/EEA residents
If you’re a tax resident of an EU or EEA country, you can deduct property-related expenses-such as repairs, utilities, and insurance-from your rental income before tax is calculated. Non-EU/EEA residents cannot deduct expenses and pay tax on gross rental income.