Spain, with its climate, culture, and opportinities, attracs throusands of non-resident every year. Whether you own a property, make investments, or run a business, understanding your tax obligations is crucial. At Consultinfo, we specialize in Non-Resident Income Tax (IRNR), and we want to offer you the peace of mind that comes with impeccable tax management.

The IRNR is the tax on income obtained in Spanish territory by non-resident individuals and entities. Its correct application may seem complex, but with the right advice, it becomes a clear and efficient process.

How Is Your Income Taxed in Spain?

How your income is taxed as a non-resident depends on whether you operate with or without a permanent establishment (PE).

With a Permanent Establishment (PE)

If your company has a head office or a branch in Spain, it will be taxed in a similar way to a resident company. You will be able to deduct expenses related to your activity, but with certain limitations. For example, payments to your parent company (such as royalties or interest) are not deductible, although a reasonable portion of general administrative expenses is.

Without a Permanent Establishment

This is the most common case for property owners or investors. Here, each source of income is taxed individually.

• Tax Rates

–24% for the general rate

–19% for residents in the EU/EEA, and for dividends, interest, and capital gains.

–Pensions: A progressive scale from 8% to 49% is applied.

• Deductions for the EU/EEA

If you live in the European Union or the European Economic Area, you can deduct expenses related to your income, such as those from renting out a property.

• Sale of Property

When you sell a property, the buyer withholds 3% of the price as an advance payment on your tax. We can help you manage this process and request a refund if applicable.

Special Tax on Property (Tax Havens): Avoid Surprises

If your entity resides in a territory considered a tax haven and owns property in Spain, it is subject to a special annual tax of 3% on the cadastral value of the asset. However, there are exemptions for certain economic activities or listed companies, and we can help you determine if your case qualifies for them.

The Advantage of Opting for Personal Income Tax (EU/EEA Residents)

One of the most interesting opportunities for individuals residing in the EU or EEA is the possibility of opting to be taxed under the rules of the Personal Income Tax (IRPF). This is especially beneficial if you meet certain requirements (for example, if the majority of your annual income is generated in Spain).

The advantage is that it allows you to apply the progressive tax scale of the IRPF and take into account your personal and family circumstances. This includes minimum tax exemptions for dependents and age, which often results in a significantly lower tax burden.

Our team will analyze your situation to determine if you can benefit from this option.

Stay Up to Date with Your Tax Obligations

Non-Resident Income Tax (IRNR) can be complex, but it doesn’t have to be a worry. At Consultinfo, we’re experts in the regulations and offer you comprehensive and effective management.

We make sure your tax matters are always in order, ensuring you take advantage of every available tax benefit, such as reduced rates for EU/EEA residents or the deduction of expenses. Avoid complications and penalties, and let our team handle everything.

Avoid complications and optimize your taxation in Spain. Contact us today for a personalized consultation.