Personal Income Tax Return
Everything You Need to Know About the Spanish Income Tax Return
Personal Income Tax Return (IRPF and IRNR) in Spain
Owning property in Spain involves important tax obligations, including filing your Income Tax Return. Both residents and non-residents must comply, and failing to do so can lead to penalties.
At Fuster & Associates, we specialize in helping international property owners manage their Spanish tax filings accurately and efficiently, so you can enjoy your investment with peace of mind.
What is the Spanish Income Tax Return?
The Income Tax Return is the process by which you report your income to the Spanish Tax Agency and pay the corresponding taxes.
However, the type of return you must file—and the income that must be declared—depends entirely on your tax residency status:
- For Tax Residents: This is known as IRPF (Impuesto sobre la Renta de las Personas Físicas). Residents in Spain are required to declare their worldwide income—including salaries, pensions, investment returns, rental income, and more—regardless of where the income originates.
- For Non-Residents: This is known as IRNR (Impuesto sobre la Renta de No Residentes). If you are not a tax resident in Spain but own property here, you must file this tax. It generally applies to:
- Deemed income from personal use of the property, or
- Actual rental income earned if the property is rented out.
The Spanish tax year follows the calendar year (January 1 to December 31). Residents often use a digital certificate (certificado digital) to file their tax return online through the official Tax Agency platform.
Who is Obliged to File an Income Tax Return?
Understanding your residency status is the first and most important step. Our team at Fuster & Associates can help you determine it with certainty.
Tax Residents in Spain
You are considered a tax resident in Spain if you meet any of the following conditions:
- You spend more than 183 days per year in Spanish territory.
- Your main centre of activities or economic interests is in Spain.
- Your non-legally separated spouse and minor children reside habitually in Spain.
Tax residents, regardless of their nationality (European or non-European), are obliged to file the IRPF return on their worldwide income, subject to double taxation treaties to avoid paying tax twice on the same income.
Non-Resident Property Owners (EU and Non-EU Clients)
If you own a property in Spain but do not meet the residency criteria (for example, you use it as a holiday home), you are obliged to file the Non-Resident Income Tax (IRNR). There are two main scenarios:
Property for Personal Use: Even if you do not rent out your property and generate no direct income, Spanish law considers that you earn a “deemed income.” You must file Form 210 annually and pay a tax based on your property’s cadastral value.
Rented-Out Property: If you rent out your property, you must declare the income earned. Citizens of the EU/EEA can deduct certain expenses, whereas non-EU citizens (including post-Brexit UK, US, and Canadian citizens) are taxed on the gross rental income without deductions. These returns are filed quarterly.
Required Information and Documentation
For Fuster & Associates to manage your tax return efficiently, we will need the following documentation:
Foreigner's Identification Number (NIE)
Essential for any tax-related procedure.
Copy of the Title Deed (Escritura de Compraventa)
Latest Property Tax (IBI) receipt
his contains the cadastral value needed for the calculation.
Your Spanish bank account details
Once approved, the applicant must collect the visa within a maximum period of one month.
If you are a resident
Details of your worldwide income (pension certificates, bank statements, investment income, etc.).
If you rent out the property
Records of rental income and receipts for deductible expenses (for EU/EEA residents only).
The Tax Return Process and Deadlines
Requirements for the Non Lucrative Visa
Our process is designed to be simple and transparent for you.
1. Initial Consultation and Document Collection
We will explain your situation and request the necessary documentation.
2. Tax Residency Assessment
We analyse your case to confirm whether you should file as a resident (IRPF) or non-resident (IRNR).
3. Tax Calculation and Optimisation
We calculate the tax due, applying all eligible deductions and tax benefits to minimise your tax liability.
5. Confirmation and Proof of Submission
We send you the submission receipt and a summary of the result (tax to pay or refund to receive).
Key Deadlines to Remember
IRPF Return (Residents)
Generally, from early April to June 30th of the year following the tax year.
IRNR Return (Non-Residents - Deemed Income)
Throughout the entire calendar year following the tax year (i.e., the 2024 return is filed before December 31st, 2025).
IRNR Return (Non-Residents - Rental Income)
These returns are generally filed quarterly, the first 20 days of April, July, October, and January . However, in some cases—such as when the tenant is a company or professional that applies withholding tax, or when the result is zero or refundable—it may be possible to file the return annually
Briefing note: Change quarterly grouping to annual in case of leasing
Notice for declarations to be filed for Form 210, corresponding to income derived from the leasing of real estate accrued from 2024.
For accruals from 2024 and in relation to income derived from the leasing of real estate, the grouping period changes from QUARTERLY to ANNUAL in this case the deadline for presentation and payment being the first twenty calendar days of the month of January of the year following the accrual .
For example:
- If you meet the grouping requirements and choose to annually group the income accrued in 2024, the deadline for filing and paying Form 210 will be the first twenty days of January 2025 (in this case, if you also wish to direct debit the payment, the deadline for electronic filing will be from January 1 to 15).
- If you choose not to group annually, you must declare each income accrual separately (that is, when it is due or on the collection date if it is earlier), and, in this case, the deadline for submitting and paying form 210 will be the first twenty calendar days of the months of April, July, October and January, in relation to income whose accrual date is included in the corresponding previous calendar quarter. For example, if the amount of the lease is received monthly, you will have to submit three Form 210s (one for each monthly payment) and pay the amount corresponding to each of them between April 1 and 20, 2024. If, in this case, you also wish to pay by direct debit, the deadlines for electronic submission of self-assessments form 210 are as follows: from April 1st to 15th, July, October or January.
Regulations: Articles 2 and 5 of Order EHA/3316/2010, of December 17, approving, among others, self-assessment form 210 of the Non-Resident Income Tax.
Fuente : AEAT Tax Agency: Briefing note: Change quarterly grouping to annual in case of leasing
Common Mistakes and How We Avoid Them
Many international property owners make mistakes that can result in fines and surcharges.
| Common Mistake | The Fuster & Associates Solution |
|---|---|
| Failing to file a return due to lack of awareness, especially the IRNR for deemed income. | We proactively inform you of your obligations from the moment you purchase your property. |
| Incorrectly determining residency status, leading to filing the wrong tax return. | We conduct a detailed analysis of your personal situation to ensure correct tax classification. |
| Not declaring worldwide income as a tax resident, which can lead to severe penalties. | We advise you on double taxation treaties and help you correctly gather and declare all your income. |
| Errors in tax calculation or failing to apply the correct deductions. | Our expert team maximises your tax savings by applying current legislation and all possible allowances. |
| Missing submission deadlines. | We manage your tax calendar to always file your taxes on time, avoiding any kind of surcharge. |
Benefits of Professional Advice from Fuster & Associates
Peace of Mind
Leave complex tax bureaucracy in the hands of experts and avoid stress and worry.
Save Money
We ensure you don't pay a cent more than necessary, optimising your tax return to maximise savings.
Security and Compliance
We guarantee your taxes are filed correctly and on time, avoiding the risk of fines and penalties from the Tax Agency.
Clear Communication
We assist you in your language, explaining complex tax concepts in a simple and direct way.
Comprehensive Advice
As your trusted advisor in Spain, we offer a service that goes beyond simply filing taxes, covering all your legal and fiscal needs.
Let Us Handle the Process for You!
At Fuster & Associates, we have a team of immigration experts with extensive experience in processing the Spanish Income Tax Return. We know how to avoid common mistakes in document submission, ensuring that each application meets all the necessary requirements to maximize the chances of approval. From document collection to filing appeals in case of denial, we handle everything so you can enjoy your new life in Spain stress-free.
If you are planning to settle in Spain in areas such as San Juan de los Terreros, Pulpí, Los Alcázares, La Zenia, Teulada, and Finestrat, our firm has strategically located offices to provide you with a personalized and close service. We have in-depth knowledge of the consular and administrative procedures specific to each region, ensuring a smooth and efficient process.
At Fuster & Associates, our team of immigration specialists will support you at every stage of the process to guarantee a successful application. From document preparation to handling appeals, we take care of everything so you can start your new life in Spain with peace of mind.
✉️ Contact us today and start living your new life in Spain with all the legal peace of mind you need.
FAQS
Frequently Asked Questions
I own a property for personal use and don't rent it out. Do I have to file a return?
Yes, it’s mandatory. Non-residents must declare their property annually (IRNR) even if it’s not rented out.
What is the key difference between IRPF and IRNR?
IRPF is for residents (taxed on worldwide income). IRNR is for non-residents (taxed only on Spanish income).
I'm from the UK. Can I deduct rental expenses?
No. Residents from outside the EU/EEA (including the UK) cannot deduct expenses and are taxed on the gross income.
What happens if I don't file my taxes?
You risk inspections from the Tax Agency with fines, surcharges, and late-payment interest.