Taxation of Non-Residents in Spain: the Most Common Mistakes and How to Avoid Them

The Impuesto sobre la Renta de No Residentes (IRNR) — Non-Resident Income Tax — applies to income earned in Spain by those without Spanish tax residence. It is regulated by Royal Legislative Decree 5/2004 and must be declared through Form 210.

Many non-residents are unaware that they must declare even modest income or capital gains.

Tip: Familiarise yourself with Form 210 and check whether your income (rent, dividends, interest, or property sales) is subject to IRNR.

One of the most serious and common mistakes is assuming you are not tax resident when you actually are.

You are deemed a Spanish tax resident if you:

• Spend more than 183 days in Spain during a calendar year; or

• Have your main economic or family interests located in Spain.

Declaring yourself as a non-resident when you should be paying Personal Income Tax (IRPF) can result in tax adjustments and penalties.

 Tip: Keep track of your days spent in Spain and assess your economic and family ties to determine your correct tax residency.

Many taxpayers believe that if they don’t live in Spain, they don’t need to pay taxes there.

That is incorrect: the IRNR covers all Spanish-source income, including rental income, dividends, interest, and capital gains from Spanish assets.

Tip: Identify all income derived from Spanish sources and check whether a tax exemption or reduced rate applies under an international Double Taxation Agreement (DTA).

Spain has signed over 100 Double Taxation Agreements, but they do not apply automatically.

To benefit from reduced rates or exemptions, you must hold a valid Certificate of Tax Residence issued by the other country and meet the conditions set out in the treaty.

Tip: Always keep the supporting documentation and review the specific treaty article applicable to your income type.

Filing deadlines for Form 210 vary depending on the income type:

• Rental income: first 20 days of April, July, October, and January.

• Property sales: within three months after the month following the sale.

• Imputed income from urban property: between 1 and 20 January of the following year.

Tip: Keep a personal tax calendar or set automated reminders to avoid late filings and penalties.

If you own a property in Spain that is not rented out, you must still declare an imputed income for simply owning it.

This is one of the most common omissions among non-residents.

Tip: File Form 210 every year to declare the imputed income of any property available for your personal use.

When a non-resident sells property in Spain, the buyer must withhold 3% of the purchase price and file Form 211 within one month.

If not done, both parties may face fines or delays in tax refunds.

Tip: Make sure the 3% withholding has been properly made and keep the Form 211 receipt, which is needed to claim a refund in your Form 210.

The IRNR tax rate depends on your country of residence and the type of income:

• 19% for residents of the EU, Iceland, or Norway.

• 24% for residents of all other countries.

Only certain taxpayers can deduct associated expenses (e.g. maintenance, insurance, community fees).

Tip: Check whether your country belongs to the EU or EEA and if you qualify to deduct related costs under Spanish tax law.

Every tax declaration must be backed by documentation — such as certificates of tax residence, withholding statements, invoices, contracts, and deeds.

Failure to provide evidence may lead to tax enquiries or loss of benefits.

Tip: Keep all tax documents for at least four years, the general statute of limitations under Spanish tax law.

Apart from Form 210, there are other formal obligations for non-residents in Spain, such as:

• Form 247 – voluntary notification for employees working abroad.

• Form 720 – declaration of assets and rights held abroad exceeding €50,000.

• Form 714 – declaration for the Wealth Tax if your net assets in Spain exceed the legal threshold.

 Tip: Seek advice from a specialised tax consultant to determine which forms apply to your assets and situation.

The taxation of non-residents in Spain requires precise knowledge of domestic legislation, tax forms, and international treaties.

Avoiding these common mistakes not only prevents penalties but also helps you optimise your tax position and ensure full compliance.

Having a trusted professional tax adviser makes all the difference in applying the rules correctly and avoiding unnecessary costs.