Tax information for non-residents in Spain. The most important information for foreigners

Spain has been attracting investors and people dreaming of living under the Mediterranean sun for years. However, before deciding to buy a house or apartment, it is worth learning the basic rules regarding taxes for non-residents in Spain. Proper preparation will help avoid unpleasant surprises and ensure that moving to Spain or investing in Spanish real estate goes smoothly.

What taxes does a non-resident pay in Spain?

Taxes for non-residents in Spain differ from those applicable to tax residents. A non-resident is a person who does not stay in Spain longer than 183 days in a tax year and does not have their center of vital interests in this country. The most important taxes for non-residents in Spain are:

• Personal income tax (IRNR – Impuesto sobre la Renta de No Residentes) – applies to income obtained within Spain, e.g., from rental properties, work, or business activities.
• Property tax (IBI – Impuesto sobre Bienes Inmuebles) – an annual local tax paid by every property owner, regardless of residency.
• Value-added tax (IVA/VAT) – applies to transactions involving the purchase of new properties and certain services.
• Capital gains tax – paid upon selling a property if a profit is realized.
• Fictitious income tax – if the property is not rented out, the Spanish tax office assumes the owner earns a so-called fictitious income on it, from which tax must be paid.

More about taxes and fees related to property purchases in Spain in 2025 read here:

Taxes and fees related to buying a property in Spain in 2025

How much is the income tax for non-residents in Spain?

Income tax for non-residents in Spain (IRNR) is one of the most important tax obligations for foreigners owning properties or earning income in Spain. The tax rate depends on the country of residence of the taxpayer and the type of income obtained.

Income from renting out properties: for citizens of European Union countries and EEA (European Economic Area), the rate is 19% on net income (allowing deducting acquisition costs, e.g., renovations, administrative fees, local taxes). For citizens outside the EU and EEA, the rate is 24% on gross income (and now: a court recently decided that citizens outside the EU and EEA will also have the option to deduct costs).

Income from work or business activities: the tax rate for non-residents is fixed and amounts to 24% for income not exceeding €60,000 or 45% if the basis is equal to or exceeds €60,000. If the non-resident is a citizen of a European Union member state, the rate is 19%.

Fictitious income from non-rented property: the taxable base is 1.1% or 2% of the cadastral value of the property (depending on the current update of this value), and the tax rate is 19% (EU/EEA) or 24% (other countries).

It is important to remember that a non-resident does not settle their taxes in Spain on income obtained outside its territory – only Spanish income is taxed.

How to settle with the Spanish tax office?

Tax settlement for non-residents in Spain is carried out based on a tax declaration submitted to the Spanish tax office (Agencia Tributaria). Key rules:

• IRNR declaration (Form Modelo 210) – submitted once a year (by December 31 of the year following the tax year) in the case of rental income or fictitious income.
• IBI tax – paid once a year, the amount is determined by the local municipality (Ayuntamiento).
• Capital gains tax – calculated upon selling property, payable within 30 days of the transaction.

It is advisable to use the services of a tax advisor or gestor (administrative specialist), especially if you do not know the language or the Spanish tax system. Many accounting offices offer services in English, and an increasing number also in Polish.

You will find a practical guide here:

Real estate in Spain and taxes. A practical guide

Does a non-resident need to have a Spanish NIF?

Yes, every non-resident who owns property, runs a business, or obtains income in Spain must have a Spanish tax identification number – NIF (Número de Identificación Fiscal). In practice, for foreigners, this is the NIE number (Número de Identidad de Extranjero), which functions as a NIF.

The NIF/NIE number is essential for:

• buying property,
• opening a bank account,
• signing contracts (e.g., utilities),
• tax settlements,
• conducting business activities.

Application for a NIE number can be submitted at the police station in the “extranjeria,” at the consulate or embassy. It can also be done via a proxy who has been given a notarized power of attorney. Without this number, it is impossible to operate legally on the Spanish real estate market and settle taxes for non-residents in Spain.

Moving to Spain and tax residency

Many foreigners wonder when they become tax residents in Spain. Two key criteria are: length of stay (over 183 days a year) and the center of vital interests. If you plan to move to Spain, it is advisable to learn about the procedure for obtaining residency and its tax consequences in advance. 

More information can be found here:

Moving to Spain – Here’s What You Need to Know

Wealth tax (IP) and solidarity tax (ITSGF) for non-residents in Spain

In recent years, the Spanish tax administration has significantly intensified controls regarding the obligation for non-residents owning property in Spain to file tax declarations. Besides the non-resident income tax (IRNR), obligations concerning wealth tax (Impuesto sobre el Patrimonio, IP) and the Temporary Solidarity Tax for Large Fortunes (Impuesto Temporal de Solidaridad a las Grandes Fortunas, ITSGF) are increasingly verified.

Wealth tax (IP) is a state tax that includes the net worth of a natural person as of December 31 each year. For non-residents, only assets and rights located in Spain are subject to taxation, including real estate, bank accounts, investments, and shares in companies.

• The tax-free amount is EUR 700,000.
• The tax rate is progressive and ranges from 0.2% to 3.5%, depending on the autonomous community.
• In some regions, such as Andalusia or Madrid, a 100% deduction applies, practically meaning no wealth tax for non-residents owning assets in these communities.

NOTICE:

In 2022, in response to regional tax discounts, the central government introduced the Temporary Solidarity Tax for Large Fortunes (ITSGF). This tax concerns individuals with net worth exceeding EUR 3,000,000 (as of December 31 of each year).

• The ITSGF tax rate is progressive and ranges from 1.7% to 3.5%.
• The obligation to file a declaration also applies to non-residents who own assets in Spain exceeding the specified threshold.
• The declaration is submitted electronically only, using form 718, between July 1 and 31 of each year.
• ITSGF tax has been extended into 2024 indefinitely, until a nationwide reform of the wealth taxation system.

Important for Polish non-residents

In the case of Polish non-residents in Spain, the double taxation avoidance treaty does not mention wealth tax or ITSGF. This means Polish non-residents are subject to Spanish regulations without exceptions, both in terms of property tax and solidarity tax. Moreover, holdings in companies where over 50% of assets are real estate located in Spain are also subject to taxation.

Tax planning

Due to increased tax audits, experts recommend appropriate tax and wealth planning, both for personal property ownership and for more complex investment structures. Acting proactively helps identify potential risks and minimize their impacts.

Taxes for non-residents in Spain are a topic that requires attention and regular monitoring of legal changes. It is advisable to seek professional assistance to avoid mistakes and costly consequences. Remember, responsible tax management in Spain for non-residents guarantees peace of mind and the security of your investment!

[Text created in cooperation with Attorney Łukasz Tkaczyk, partner at LTA Asociados law firm]

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