Irnr is a Spanish income tax on non -residents. It applies to all foreigners who have real estate in Spain, but do not have a tax residence here, i.e. they are not in this country for at least 183 days a year. Importantly, this tax is calculated regardless of whether the property is rented or used only for its own needs.
In the case of rental, the owner must pay tax on the income obtained, after deducting the costs. But The taxation of the so -called fictitious income, i.e. a situation where the owner does not derive any real profits from the property, and yet he must pay tax only for the very fact of having it. The amount of tax depends on the country of the taxpayer's residence and the type of income obtained. It is worth remembering that a non -resident does not settle in Spain from income obtained outside its territory – only Spanish income is taxable.
The European Commission intervenes on discrimination
IRNR is one of the tax liabilities for foreigners with real estate or earning income in Spain. Currently, this is a hot topic because the European Commission has found the applicable law discriminatory. On June 18, 2025, the EC initiated official proceedings against Spain, alleging her violation of the EU principles of freedom of capital and employees. She decided that the current regulations discriminate against non -residents, imposing on them the obligation to pay tax on fictitious income, while residents are exempt from this obligation.
Brussels gave Madrid for two months to answer and take corrective actions. Although the deadline has expired, the public has not yet received information as to the position and response of the Spanish authorities – explains Tatiana Pękala, the owner of Dream Property Marbella, the Polish Real Estate Bureau in Spain.
Different rates for EU citizens and outside the Union
When settling income from real estate rental, citizens of European Union countries and the European Economic Area must pay a 19 % rate, which is calculated from net income. This means that you can deduct tax deductible costs, e.g. renovation costs, administrative fees, local taxes.
For citizens from outside the EU and EEA, this rate is still 24 percent. on gross income, but there is a real chance to equalize tax rates for both groups of non -residents. Audiencia Nacional judgment published on July 28 recognized the current situation of non -residents from outside the EU as unlawful.
In the case of income from work or business activity, the tax rate for non -residents who are citizens of the European Union, i.e. Poles, is 19 percent. Non -residents from outside the Union must pay 24 percent. For the basis not exceeding EUR 6,000 or 45 percent In the event that the base is equal to or higher than the amount of EUR 6,000.
How to settle accounts with the Spanish tax authorities?
Settlement of taxes for non -residents in Spain, as in Poland, is based on tax declaration submitted to the Spanish tax office. The IRNR declaration (Modelo 210 form) is submitted once a year until December 31 of the year following the tax year in the case of rental income or fictitious income. IBI tax is paid once a year, and its amount determined by the local commune office. In turn, we settle tax on capital profits only when selling real estate. We have 30 days for this from the moment the transaction is made.
– It is worth it in this case use the services of a tax advisor, especially if the buyer does not speak Spanish and does not know the local tax system. Many accounting offices offer English service, and more and more in Polish – advises Tatiana Pękala.
Additional costs when purchasing real estate
Proper estimation of the budget needed to buy real estate in Spain is as important as choosing its location. When buying a flat or a house in Spain, you have to pay VAT in the amount of 10 percent In the case of real estate from the primary market or etc. (tax on transferring ownership) in the case of real estate from the secondary market.
– Remember that the amount of tax etc. is not the same for all of Spain. It varies depending on the region. For example, in Andalusia, this tax is 7 percent, and in Alicante: 10 percent. – reminds Tatiana Pękala.
However, this is not the end. Real estate owners with a value of over EUR 3 million apply, depending on the region, property tax or solidarity tax on great fortunes. Depending on the value of the property, the first ranges from 0.2 to 3.5 percent, and the second one from 1.7 to 3.5 percent. The tax -free amount is 700 thousand. euro.
