WHAT DETAILS ARE REQUIRED TO PERFORM THE IRNR?
Rental income must be declared quarterly using a separate Form 210 for each property, and if ownership is shared, each owner must file individually. Declarations are due during the first 20 days of January, April, July, and October. If no net income is generated (i.e., zero profit), the declaration period is January 1–20 of the following year.
PROPERTY FOR RENT
The tax base is calculated by deducting eligible expenses from rental income, such as:
- Mortgage or financing interest for acquisition or improvements.
- Financing interest for furniture and appliances.
- Repair and maintenance costs (any excess can be carried forward for up to four years).
- Utilities (electricity, water, gas) if paid by the owner.
- Home insurance.
- Property tax (IBI).
- Garbage tax (if not included in community fees).
- Community fees, security, or porter services.
- Administrative costs for rental setup (legal, agency, notary fees).
- Depreciation: 3 % annually for building over 68 years; 10 % annually for furniture and appliances over 20 years.
Pro-rated deductions apply to expenses incurred annually. A 19 % tax rate applies to net rental income. Non-EU (and non-Norwegian or Icelandic) owners cannot apply deductions and are taxed at 24 %. The 60 % habitual-residence rent reduction is not permitted under IRNR.
REAL ESTATE RESERVED TO OWN USE
Even if the property is kept for personal use or remains vacant, IRNR must still be declared using Form 210. No deductions are allowed in this case; taxable income is calculated as 2 % of the cadastral value (1.1 % if revised within the last 10 years), then taxed at 19 % (or 24 % for non-EU, non-Norway, non-Iceland owners).
The current cadastral value can be found in your IBI receipt—a municipal tax separate from IRNR. For owner-use or vacant properties, IRNR must be declared and paid between January 1 and December 31 of the year following the tax year.
If the property was rented for some periods and left vacant for others, you must file quarterly Form 210 for rental income during occupied periods, and an annual Form 210 for the duration it was unoccupied or used privately.
REAL ESTATE FOR SALE
When selling the property, capital gains are taxed based on the difference between sale and purchase prices—including acquisition and sale-related costs and taxes. For previously rented properties, depreciation amounts already claimed must be subtracted from the purchase price when calculating taxable gain.
The buyer must withhold and pay 3 % of the sale price as an advance tax payment using Form 211 within one month of signing the deed. The buyer must also provide a copy of the form to the non-resident seller to offset this amount against the IRNR due.
WEALTH TAX
If a non-resident’s total assets in Spain exceed €700,000, they must also pay Wealth Tax (Impuesto sobre el Patrimonio), which ranges from 0.2 % to 2.5 % after deductions. This tax is declared via Form 714, with filing deadlines between April 1 and June 30 of the following year.
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