What is the IRNR?
The IRNR is Spain's income tax for non-residents with Spanish-source income. For property owners who don't live in Spain, this means a deemed income charge on non-rented properties and actual rental income tax for let properties. Both must be declared annually.
Deemed Income for Non-Rented Properties
If you own a Spanish property that is not your primary residence and you do not rent it out, Spain taxes a notional deemed income based on the cadastral value:
- 1.1% of cadastral value if revised by the municipality within the last 10 years.
- 2% of cadastral value if not revised within the last 10 years.
This deemed income is then taxed at the IRNR flat rate:
- 19% for EU and EEA nationals.
- 24% for all other non-residents, including UK nationals post-Brexit.
Example: British national, apartment in Mijas, cadastral value €80,000 (revised). Deemed income = 1.1% × €80,000 = €880. IRNR at 24% = €211.20. Filed by 31 December.
Rental Income Tax
If you rent out your Spanish property, rental income is taxable in Spain. Tax is due quarterly.
EU/EEA residents can deduct expenses proportionally to the rental period. Non-EU residents (including UK nationals post-Brexit) are taxed on gross rental income at 24% with no expense deductions — this significantly increases the effective tax rate compared to EU nationals.
Filing the Modelo 210
IRNR returns are filed using Modelo 210:
- Non-rented property (deemed income): Filed once per year. Deadline: 31 December of the tax year. One return per property.
- Rental income: Filed quarterly within the first 20 days of April, July, October, and January.
Failure to file results in penalties of 50–150% of tax owed plus daily interest. Many non-resident property owners are unaware of this obligation.
Multiple Spanish Properties
Each Spanish property requires a separate Modelo 210 filing. A lawyer or tax advisor manages all filings on your behalf to ensure all are timely and accurate.