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If you’re not a resident in Spain, but do have a financial asset such as property, even though you don’t live here, you will be obliged to pay some taxes. These generally include IRNR or non-residents tax, IBI property tax and rubbish tax.
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IRNR tax
IRNR stands for Impuesto sobre la Renta de no Residentes and essentially includes most non-residents taxes. This can be property rental income tax, inheritance tax, wealth tax and capital gains tax.
Generally you will pay non-residents tax if you own a property in Spain, but do not live here year round. Typically you will be a considered a non-resident for tax purposes if you spend under 183 days a year here, but there are exceptions so you should contact a tax expert if you’re unsure.
For example, you could also be obliged to pay non-residents tax if you have a long-term contract for a rental property here.
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Typically you will be charged IRNR rate of 19 percent on net income you receive in Spain if you’re an EU resident and 24 percent if you’re a non-EU resident. So this would be either 19 or 24 percent on the rental income you receive from renting out your property here. Remember if you don’t rent your property out and receive rental income you will still be charged this tax because of the possibility that you could rent it out.
But there are other non-residents rates, depending on the type of tax you owe. This is 19 percent for capital gains, interest and dividends, 24 percent for royalties and between 8 and 40 percent for pensions. Many countries have double taxation agreements with Spain though, which means you won’t pay tax on these twice.
It’s worth keeping in mind that if you own a property in Spain and you’re from the EU, Norway and Iceland, you can claim back certain expenses on your tax, but if you’re from a non-EU country, you can’t.
IRNR: What you need to know about Spain’s non-resident tax
IBI tax
IBI stands for Impuesto sobre Bienes Inmuebles in Spanish, which means tax on property goods. Sometimes it’s also referred to as SUMA depending on where you are in the country.
It’s a tax paid by anyone who owns a property in Spain, regardless of whether you’re a resident or a non-resident. It’s like a type of council tax. Even if you rent your property out, you as the landlord will still be responsible for paying this every year.
It’s important to be aware that the IBI amount changes depending on where your property is located. According to a report by Spain’s Organisation of Consumers and Users (OCU), in 2023 Lleida, Tarragona and Girona (in Catalonia) are the municipalities where the IBI bills were the highest, whereas San Sebastián, Bilbao and Vitoria (in the Basque Country) had the cheapest.
It’s calculated as a percentage of the cadastral value of the property, noted on the land registry records. Essentially for urban properties it must be between 0.4 percent and 1.1 percent of the value, although it can be up to 1.3 percent in provincial capitals. For rural properties, the amount can be higher than for urban properties because they are bigger and have more land.
READ ALSO: What is Spain’s IBI tax and how do I pay it?
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Rubbish tax
Rubbish tax or la tasa de basuras is a new type of tax for homeowners that has recently been introduced. Local governments have until April 8th 2025 at the latest to enforce it, but some councils have already started charging it.
Others are charging part of it only so far, while some say the fees are already covered by other pre-existing municipal taxes. You should find out from your local town hall as to what the plans are in your area and what you will be charged.
Whether it’s you as a property owner who is responsible for paying this tax or if it’s your tenants who pay it, again will depend on where the property is located.
In Madrid for example, the authorities state that “the person obliged to pay is the owner of the property and not the one who occupies the property and only in exceptional cases can the administration directly address the person benefiting from the service, as as the payer”.
But, in Barcelona it’s completely the opposite. The Local Treasury Law there says that the taxpayer of the rate is the person who benefits from the service of collection of urban solid waste, its treatment and disposal, that is, the occupant of the home such as the tenant.
If you’re unsure about who should pay this tax in your local area, again it’s best to contact your local town hall to find out.