Question 1

Who is required to pay the Non-Resident Income Tax in Spain?

Accepted Answer

Any individual or legal entity that earns income in Spain without being a tax resident. This includes foreign owners of property in the Canary Islands, workers on temporary contracts, athletes and performers appearing in Spain, and foreign companies operating within Spanish territory.

Question 2

When must I file Form 210 (Modelo 210) for property in the Canary Islands?

Accepted Answer

If you are a non-resident owner of a property in the Canary Islands, you must file Form 210 (Modelo 210) annually. If the property is rented out, the deadline is quarterly (the first 20 days of April, July, October and January). If it is for your own use (not rented), it is filed within the first 4 months of the following tax year.

Question 3

What is the IRNR tax rate for non-resident EU citizens?

Accepted Answer

Residents of the European Union, the EEA (European Economic Area) and Iceland/Norway are taxed at 19%. Residents of other countries are taxed at the general rate of 24%. In the case of dividends, interest and capital gains, the rate is 19% for all non-residents.

Question 4

Can I deduct expenses on the IRNR if I own a rented property?

Accepted Answer

If you are a resident of the EU or EEA, yes, you can deduct expenses directly related to earning the income (community fees, repairs, insurance, mortgage interest, etc.). If you are resident outside the EU/EEA, you will be taxed on gross income without any deduction of expenses.

IRNR

Taxation for non-residents

Double taxation treaties

3% withholding on property sales

Meet your tax obligations

IRNR

Taxation for non-residents

Double taxation treaties

3% withholding on property sales

Meet your tax obligations

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