Non-resident tax Spain 2026: your complete IRNR obligations guide

What is IRNR and who does it affect?

Spain’s non-resident income tax — Impuesto sobre la Renta de No Residentes, or IRNR — is the tax framework that governs all income earned in Spain by people who are not Spanish tax residents. It is codified in Real Decreto Legislativo 5/2004, de 5 de marzo, por el que se aprueba el texto refundido de la Ley del Impuesto sobre la Renta de No Residentes (LIRNR).

IRNR applies to a wide range of situations affecting foreigners:

• Property owners who leave their Spanish home empty for part or all of the year (deemed imputed income applies)
• Landlords who rent their Spanish property to tenants (actual rental income is taxable)
• Property sellers who generate a capital gain on the sale of Spanish real estate
• Investors who receive dividends from Spanish-listed companies or interest on Spanish bonds
• Shareholders in Spanish private companies who receive distributions
• Beckham Law holders who are taxed as non-residents under Art. 93 LIRPF during their six-year special regime

The tax is separate from Spanish residents’ IRPF. It is administered by the AEAT and filed using Modelo 210 for most income types, or Modelo 211 when a non-resident buyer withholds 3% on a property purchase.

The 2026 IRNR rates

For EU and EEA residents (including nationals of all EU member states and Iceland, Liechtenstein, Norway): 19% on rental income, capital gains, dividends, interest, and deemed property income.

For non-EU/EEA residents (including UK nationals post-Brexit, US citizens, Canadians, Australians, and nationals of all other third countries): 24% on the same income types. Some exceptions apply — capital gains from EU/EEA sources may be taxed at lower rates in specific circumstances, and treaty rates often override these domestic rates.

Capital gains on Spanish real estate: 19% (EU/EEA) or 24% (non-EU), applied to the net gain — acquisition cost plus improvement expenditure (indexed for properties acquired before 1994, though full indexation was removed by the 2015 tax reform) compared to the sale price.

Savings income (dividends, interest, capital gains on securities): generally 19–24% depending on EU/non-EU status, subject to treaty reduction.

Post-Brexit changes for UK nationals

The UK’s departure from the EU on 31 January 2020, followed by the end of the transition period on 31 December 2020, changed the IRNR position for UK nationals in two significant ways:

1. Rate change. UK nationals are now classified as non-EU residents for IRNR purposes. Rental income is taxed at 24% (not 19%) and there is no right to deduct rental expenses. For a landlord receiving €12,000 per year in rental income and incurring €4,000 in deductible expenses (maintenance, insurance, community fees), the pre-Brexit EU position produced IRNR of €1,520 (19% of the net €8,000). The post-Brexit non-EU position produces IRNR of €2,880 (24% of the gross €12,000) — an 89% increase in the tax bill on the same property.

2. Expense deductibility. EU and EEA residents filing IRNR on rental income can deduct mortgage interest, maintenance costs, insurance premiums, community fees, and property management expenses before calculating the tax. Non-EU residents (now including UK nationals) cannot deduct any expenses — they pay IRNR on the gross rental receipt.

The UK-Spain DTA (the 2013 treaty, in force from 2015) provides some relief for specific income types — reduced withholding rates on dividends and interest — but does not restore the EU-resident IRNR rules. The treaty position for rental income is that Spain retains full taxing rights on income from Spanish property regardless of the treaty.

Deemed imputed income on unrented Spanish property

One of the most misunderstood IRNR obligations is the annual charge on unrented Spanish property. Under Art. 85 LIRNR and Art. 24 Ley IRNR, a non-resident who owns Spanish property (other than their main residence) is deemed to receive an annual income equal to:

• 1.1% of the cadastral value (for properties whose cadastral value has been revised or updated in the last ten tax years)
• 2% of the cadastral value (for properties whose cadastral value has not been revised in the last ten tax years)

This deemed income is taxable at the IRNR rate regardless of whether the property is actually rented out or earning any income. A holiday home that is left empty for the entire year still generates an annual IRNR liability.

Illustrative calculation for a non-EU resident (e.g. UK national) owning a property with cadastral value €200,000:

• Deemed income: €200,000 × 1.1% = €2,200
• IRNR at 24%: €528 per year
• Filing: one annual Modelo 210, filed between 1 January and 31 December of the following year

This is a modest sum, but the penalty for five years of non-filing — plus the interest and surcharges — easily reaches several thousand euros.

Rental income: quarterly compliance

If you rent your Spanish property — whether to a long-term tenant or through short-term platforms such as Airbnb or Booking.com — the rental income is subject to IRNR and must be declared quarterly.

Quarterly filing deadlines:

• Q1 (January–March): file by 20 April
• Q2 (April–June): file by 20 July
• Q3 (July–September): file by 20 October
• Q4 (October–December): file by 20 January

Each quarterly return (Modelo 210) reports the gross rental income received in the quarter, the applicable deductions (for EU residents only), and the net tax payable. The tax must be paid simultaneously with the filing.

EU/EEA residents can deduct the following expenses in proportion to the rental period:

• Mortgage interest on the property
• Local property tax (IBI)
• Community fees (cuotas de la comunidad de propietarios)
• Insurance premiums
• Maintenance and repair costs
• Utility costs during the rental period
• Property management fees

Non-EU residents cannot deduct any expenses. They declare and pay IRNR on the full gross rental receipt.

Capital gains on Spanish property: the 3% withholding mechanism

When a Spanish resident buys property from a non-resident, Art. 25.2 LIRNR requires the buyer to withhold 3% of the sale price and pay it directly to the AEAT (via Modelo 211) within one month. The buyer deducts 3% from the payment to the seller and remits it to the tax authority as a payment on account of the seller’s IRNR on the capital gain.

The seller then has three months from the sale date to file Modelo 210 declaring the actual capital gain and the corresponding IRNR:

• If the actual IRNR on the gain is greater than the 3% withheld: the seller pays the difference
• If the actual IRNR is less than the 3% withheld: the seller can reclaim the excess from the AEAT
• If the actual IRNR is zero (sale at a loss, or gain fully covered by a treaty exemption): the full 3% is recoverable

For many non-resident sellers who bought during the Spanish market downturn of 2009–2014 and are selling now at a modest gain, the actual IRNR on the gain is well below 3% of the sale price. BMC calculates the actual liability, files Modelo 210 within the three-month window, and manages the reclaim process — which typically takes 6–18 months for the AEAT to process.

Dividends and interest: treaty-rate reclaims

When a Spanish company pays a dividend to a non-resident shareholder, it withholds Spanish IRNR at source — typically at the domestic rate of 19% (EU) or 24% (non-EU). However, many of Spain’s double tax treaties provide for lower withholding rates:

Where Spanish withholding was applied at the higher domestic rate but a treaty rate is lower, the non-resident can file Modelo 210 to reclaim the excess. BMC manages this reclaim cycle for investors with Spanish equity or bond portfolios, typically filing annually after receiving the year-end withholding summary from the Spanish custodian.

To apply the treaty rate at source (avoiding over-withholding from the outset), you must provide the Spanish custodian with a certificate of fiscal residence (certificado de residencia fiscal) issued by your home country’s tax authority within the current tax year. BMC obtains and refreshes these certificates annually for clients with Spanish investment portfolios.

IRNR and Beckham Law: the connection

Holders of the Beckham Law (Regimen Especial para Trabajadores Desplazados, RETD — Art. 93 LIRPF) are Spanish tax residents who elect to be taxed under IRNR rules for their Spanish income. They file Modelo 151 (not Modelo 210 or 100) but their Spanish income is taxed at the Beckham flat rate (24% standard, 15% for digital nomad visa holders) rather than the IRNR general rates.

The connection matters because Beckham Law holders must still consider their Spanish-source investment income (dividends, interest, capital gains on Spanish securities) under the IRNR savings scale, and because the Model 720 and Model 721 obligations apply to them as residents regardless of the IRNR-mode taxation.

See our separate guide on the Beckham Law for the full eligibility and compliance framework.

Practical case: UK couple with a Mallorca apartment

To illustrate the range of IRNR obligations, consider a UK couple who own a three-bedroom apartment in Mallorca with a cadastral value of €220,000 and a market value of approximately €450,000. They rent it out for three months each summer via Airbnb (receiving €18,000 in rental income) and use it themselves for two months. The remaining seven months it is empty.

Rental income (3 months, gross €18,000): IRNR at 24% (UK = non-EU) on gross income = €4,320. Filed quarterly via Modelo 210.

Deemed income on the remaining 9 empty months (including personal use): Deemed income = €220,000 × 1.1% × (9/12) = €1,815. IRNR at 24% = €436. Annual Modelo 210 (filed in the following calendar year).

Total annual IRNR on the apartment: approximately €4,756, plus any Spanish wealth tax obligation if the property is their only Spanish asset and the value is above the €700,000 personal exemption threshold (it is not in this case — each partner’s share is €225,000).

If they sell the apartment for €450,000 having purchased for €320,000 (net gain approximately €130,000 after transaction costs), the buyer withholds €13,500 (3% of €450,000). IRNR on the gain at 24% is €31,200. The couple owes the AEAT a top-up of €17,700 after the withheld €13,500.

NIE and NIF: what non-residents need

Non-residents with Spanish tax obligations must have a Spanish tax identification number. For individuals, this is the NIE (Número de Identificación de Extranjero). The NIE is required to file any Spanish tax return and to sign any notarial document in Spain.

How to obtain a NIE:

• Apply at the Spanish consulate in your country of residence (no presence in Spain required)
• Apply in person at a Jefatura Provincial de Extranjería or Comisaría de Policía in Spain
• Apply through a representative with a notarised power of attorney

For companies (non-resident entities with Spanish income), the equivalent is the NIF (Número de Identificación Fiscal) issued by the AEAT. A fiscal representative (representante fiscal) in Spain is required for non-resident entities in most cases.

BMC assists with NIE and NIF applications and provides the required fiscal representation service where needed.

Frequently asked questions

I just inherited a Spanish property from a relative — do I immediately have IRNR obligations? Yes. From the moment you become the registered owner of a Spanish property (after completing the deed of acceptance and land registry registration), you have annual IRNR obligations: the deemed income return if the property is not rented out, or quarterly rental income returns if you let it. You will also need to assess wealth tax exposure. BMC typically handles the IRNR setup as part of the inheritance compliance engagement.

I’m American — does the US-Spain treaty reduce my Spanish property tax? The US-Spain CDI (1990 treaty) covers income taxes. For rental income and deemed income from Spanish property, the treaty generally confirms Spain’s right to tax income from Spanish real estate — it does not override Spain’s domestic IRNR on property income. For dividends and interest, the treaty provides reduced rates (see table above). US citizens should also note that they must report Spanish income on their US federal return and may be able to claim a foreign tax credit for IRNR paid, depending on the income category.

How do I know if I’m classified as EU or non-EU for IRNR purposes? IRNR classification is based on your country of tax residence, not nationality. A British national who is a tax resident in Germany (and can prove it with a German certificate of fiscal residence) is classified as EU-resident for IRNR and pays the 19% rate with expense deductions available. A British national tax-resident in the UK is classified as non-EU and pays 24% on gross rental income. Your residence certificate from your home country is the key document.

My Spanish rental income is very small — does the IRNR obligation still apply? Yes. There is no minimum threshold below which IRNR does not apply. Even €100 of Spanish rental income theoretically requires a Modelo 210. In practice, small amounts may not be priority enforcement targets for the AEAT, but the obligation exists and the penalties for non-filing are calculated as a percentage of the unpaid tax — meaning even a small omission generates proportional penalties if caught.

I have a mortgage on my Spanish property — can I deduct the interest as a UK national? No. Post-Brexit, UK nationals are non-EU residents for IRNR and cannot deduct any expenses including mortgage interest. Only EU and EEA residents can deduct mortgage interest on Spanish rental property. The loss of this deduction has increased the IRNR burden for many UK property owners compared to their pre-2021 position.

What is the statute of limitations for IRNR obligations? The AEAT has four years from the date a return was due to open an inquiry into non-filed returns. For quarterly IRNR filings, each missed quarter starts its own four-year clock from the relevant filing deadline. Multi-year non-compliance therefore involves overlapping limitation periods. Voluntary regularisation before the AEAT opens an inquiry significantly reduces the total exposure.