WELCOME TO THE CALCULATOR SECTION OF SPANISH TAXES FOR NON RESIDENTS
In this section, you will be able to calculate your the Spanish INCOME TAX FOR NON FISCAL RESIDENTS (Model 100 IRPF “Impuesto de la Renta de las Personas Físicas” – Spanish Inland Revenue”) to pay in the following cases:
- When you have a house in Spain for your private use
- When you have a house in Spain for your private use, and you rent it by occassional periods or seasons
PRELIMINARY QUESTIONS ABOUT
SPANISH INCOME TAX FOR NON RESIDENTS
Non residents with properties in Spain, taxpayers, companies and/or individuals who operate without a permanent establishment, whether they are natural or legal persons, are taxed in accordance with the IRPF (Spanish Income Tax – Capital Gains Tax – Model 210 IRPF) regulations, and do so for each transaction, as established in articles 24 and following of the Consolidated Text of the IRPFNR Law – Model 210.
1.- Tax base
a) General rule: In general, the tax base will be made up of its full amount, determined in accordance with the rules of personal income tax.
b) Special rules: In the cases of provision of services, technical assistance, installation or assembly works derived from engineering contracts and, in general, from activities or economic operations carried out in Spain without the mediation of a permanent establishment, the taxable base will be equal to the difference between the full income and the following expenses:
– Salaries and social charges of the personnel employed directly in the development of the activity provided that the income of the applicable tax or the payments on account of the paid work income is justified or guaranteed.
– Provision of materials for their definitive incorporation to the works carried out in Spanish territory.
– Supplies consumed in Spanish territory for the development of activities.
The tax base corresponding to capital gains will be determined by applying, to each capital alteration that occurs, the rules provided for personal income tax, with certain exceptions.
– In the case of non-resident entities, when the capital gain comes from a non-lucrative acquisition (donation for example), that amount will be valuated at the “normal market” value of the item acquired.
– When the earnings come indirectly from assets located in Spanish territory, or from rights related to them, and the entities are considered as “merely holder of assets”, and they are resident in countries or territories with which there is no effective exchange of tax information, those real estates located in Spanish territory will be subject to the payment of the tax.
– IMPUTED INCOMES: In the case of non-resident natural persons, the imputed income of real estate located in Spanish territory will be determined in accordance with the provisions of the Personal Income Tax Law (2% of the cadastral value of urban or rustic real estate with constructions not essential for the exercise of any exploitation, not related to economic activities or generators of real estate capital returns, or 1.1% if the cadastral value has been revised).
– INCOMES OBTAINED BY RENT FROM SPANISH PROPERTIES : They will be taxed at 19 % (for EU Residents + Norway + Iceland) or 24 % (Non EU residents: USA, UK, Canada, Mexico, etc). Very important to know that only EU Residents will have the right to reduce the tax with the maintenance expeneses, reforms, etc, made on the property. In case of Non EU residents , no reductions will be applicable for these items, so, the tax rate will be applicable to the total amount of rent received in full (with no reductions).
– Taxpayers residing in another Member State of the European Union have specific regulations that allow them to apply their own special rules, such as:
*The expenses provided for in the Personal Income Tax Law can be deducted, as if we were talking about residents, as long as they prove that they are directly related to the income obtained in Spain.
*The taxable base corresponding to capital gains will be determined by applying, to each patrimonial alteration that occurs, in general, the rules of the Personal Income Tax Law that would be applied in the event that the taxpayer was so for that Tax.
2.- Tax rate
|Residents EU, Iceland and Norway||Rest of countries|
* Work income received by non-resident individuals in Spanish territory by virtue of a fixed-term contract for seasonal workers, in accordance with the provisions of labor regulations: 2%.
* Dividends and other income derived from the participation in equity of an entity, and Interest and other income obtained from the transfer of own capital to third parties: 19 %
Only the following will be deducted from the tax:
The amounts corresponding to the deductions for donations in the terms provided in article 68.3 of the Consolidated Text of the Personal Income Tax Law.
The withholdings and payments on account that have been practiced on the taxpayer’s income.
As explained above, and talking about incomes received from rent in Spanish properties, only EU Residents will have the right to reduce the tax with the maintenance expeneses, reforms, etc, made on the property. In case of Non EU residents , no reductions will be applicable for these items, so, the tax rate will be applicable to the total amount of rent received in full (with no reductions).
The tax will accrue:
– In the case of returns, when they are due or on the date of collection if this is earlier.
– In the case of capital gains, when the property alteration takes place.
– In the case of imputed income corresponding to urban real estate, on December 31 of each year.
– In the remaining cases, when the corresponding income is due.
– In the event of the taxpayer’s death, all income pending imputation shall be deemed payable on the date of death.
5.- Formal obligations
Taxpayers who obtain income in the Spanish territory without the mediation of a permanent establishment will be obliged to present a declaration, determining and entering the corresponding tax debt for this tax within a period of one month from the accrual date.
- In the case of IMPUTED INCOME corresponding to urban real estate for own use, the return will be presented before de 31 DECEMBER for the following year (Imputed Tax declaration for the year 2021 must be presented on the 2022, before 31.12.2022).
- In case of INCOMES RECEIVED FROM RENT: Quarterly declaration – RENT: You have to declare that income in the same quarter in which the rent is generated. Presentations of these declarations must be done before 20 days after the end of that quarter.
In the case of the example, the incomes from rent from the quarter January-March, should be declared in the tax declarations to submit before the 20th of April 2022.
IMPORTANT NOTE: In case the property has been rented in a period of time during the year, then, the owner has to present 2 DECLARATIONS OF TAXES:
1.- The QUATERLY DECLARATION OF RENT INCOMES obtained in the same year.
2.- The ANNUAL TAX DECLARATION FOR THE IMPUTED of theprevious year.
For the period 2021, the house is not rented
For the period 2022, the house is rented 2 months in July/August and the rest of the year is not rented.
Formal obligations of the owner:
– Before 20th of October 2022, Quaterly declaration of the rent obtained in July/August 2022
– Before the 31st of December 2022, Yearly declaration of Imputed Income generated in 2021
– Before the 31st of December 2023, Yearly declaration of the Imputed Income generated in 2022 (the interval of the year where the house has not been rented).
So, please, be informed that, when renting a property for touristic purposes, together with your LEGAL obligation to register your property, you have the TAX OBLIGATION to declare the income QUARTERLY, and then, ANUALLY, for the rest of the year.
- Taxpayers who obtain income from economic activities or exploitations carried out in Spain will be obliged to keep records of income and expenses.
- Likewise, they must keep, numbered in order of dates, the invoices issued and the invoices or supporting documents received.
- They are obliged to make withholdings and payments on account with respect to the work income they satisfy, as well as other income subject to withholding that constitutes. s
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