{"id":18615,"date":"2019-02-28T11:49:03","date_gmt":"2019-02-28T10:49:03","guid":{"rendered":"https:\/\/etl-ilia.es\/general\/que-es-el-irnr\/"},"modified":"2024-07-23T15:32:29","modified_gmt":"2024-07-23T13:32:29","slug":"what-irnr","status":"publish","type":"post","link":"https:\/\/etl-ilia.es\/en\/tax-advice-blog\/what-irnr\/","title":{"rendered":"What is the IRNR?"},"content":{"rendered":"

If you are foreigner<\/strong> and work or have a business in Spain, you must know the IRNR<\/strong> or income tax. non-residents<\/strong>. This post tells you what it consists of and where and how it is applied. The IRNR is a direct tax that taxes income obtained in Spain by individuals or entities not resident in our country.<\/p>\n<\/div><\/div><\/div><\/div><\/div>

Where is the IRNR applied?<\/h2>\n

The IRNR<\/strong> is applied throughout the Spanish territory taking into account:<\/p>\n

    \n
  • The regional regimes of the Basque Country and Navarra.<\/li>\n
  • The special regulations applicable in the Canary Islands, Ceuta and Melilla.<\/li>\n
  • What is established in the applicable international conventions?<\/li>\n<\/ul>\n

    Who is the IRNR taxpayer?<\/h2>\n

    The taxpayers<\/strong> in the IRNR<\/strong> are the following:<\/p>\n

      \n
    • Natural persons and entities not resident in Spain that obtain income in our country and that do not pay IRPF<\/strong> taxes.<\/li>\n
    • Foreign natural persons who reside in Spain and are members of a diplomatic mission.<\/li>\n
    • Entities in Spain incorporated abroad are subject to the income attribution regime.<\/li>\n<\/ul>\n

      To determine residence, the rules of the IRPF law are applied; that is, a natural person will be deemed to reside in Spain when:<\/p>\n

        \n
      • Stay in our country more than 183 days a year.<\/li>\n
      • The base of its activities is located in Spanish territory<\/li>\n
      • The spouse is not legally separated, and the taxpayer’s minor children reside in Spain.<\/li>\n<\/ul>\n

        In the case of an entity or legal person, it is considered to reside in Spain when:<\/p>\n

          \n
        • It has been established according to Spanish law.<\/li>\n
        • Have your domicile in Spain.<\/li>\n
        • Have an effective management headquarters in Spain.<\/li>\n<\/ul>\n

          Obligation to appoint a tax representative<\/h2>\n

          To control non-residents’ tax, the law imposes the obligation to appoint a tax representative<\/strong>. The taxpayer of the IRNR or his representative must inform the Tax Administration of the appointment within two months from when it is made.<\/p>\n

          What is taxed with the IRNR?<\/h2>\n

          The IRNR taxable event is as follows:<\/p>\n

            \n
          • Income derived from economic activities in a permanent establishment in Spain.<\/li>\n
          • The income from economic activities without a permanent establishment. This is the case for artists and athletes.<\/li>\n
          • Work income when it derives from work performed in Spain and is remuneration paid by the Spanish administration.<\/li>\n
          • Pensions when they derive from employment carried out in Spain.<\/li>\n
          • The remuneration of administrators, members of the board of directors and boards of an entity resident in Spain.<\/li>\n
          • Dividends derived from an entity resident in Spain.<\/li>\n
          • Interest or income obtained from the transfer to third parties of capital paid by persons or entities domiciled in Spain.<\/li>\n
          • The fees or royalties made by people or entities residing in Spain.<\/li>\n
          • Income derived from real estate located in Spain.<\/li>\n
          • The income is attributed to natural taxpayers who own urban real estate in Spain.<\/li>\n
          • Capital gains derived from securities issued by persons or entities residing in Spain.<\/li>\n<\/ul>\n<\/div><\/div><\/div><\/div><\/div>