Guide to Income Tax in Spain for Non-Residents 2022 🧾

Being a non-resident in Spain has a number of advantages, including access to world-class infrastructure and a favorable climate. However, it also has a downside – you are required to file a Spanish non-resident income tax return. 

This guide will provide you with all the information you need to ensure that you file your Income Tax in Spain for Non-Residents return correctly and on time.

First of all, when can you be deemed tax resident in Spain?

The following circumstances will make you considered tax resident in Spain:

✔ If you have your main home or residence in Spain. This is irrespective of whether you are living in Spain permanently or not, and includes properties that you own, rent or even those that you temporarily occupy such as holiday homes.

✔ If your spouse or dependent children live in Spain, even if you do not.

✔ If your place of work is in Spain. This doesn’t necessarily mean that you are employed by a Spanish company. However, rather than the place where you habitually carry out your professional activity is in Spain.

✔ If you spend more than 183 days in Spain during a calendar year. This can be cumulative and doesn’t have to be continuous – so if you spend 180 days one year and 185 days the next, you will still be considered a tax resident. Note that this rule applies regardless of your nationality or country of residence.

👉 Important. If you’re not deemed a tax resident in Spain but you do earn income in Spain or from Spanish sources, you would be liable for paying taxes in Spain. Under this circumstances you would be liable for submitting Income Tax in Spain for Non-Residents.

An Overview of Income Tax in Spain for Non-Residents  🇪🇸💸💸

As mentioned, Spain has a special tax regime for non-residents who earn income from Spanish sources. This regime is known as the Non-Resident Income Tax (NRIT).

The Income Tax in Spain for Non-Residents is levied on income earned from activities in Spain, such as employment, business, and investments. It is also levied on certain types of passive income, such as dividends, interest, and royalties.

Generally, non-residents (from non-EU countries) who earn income from Spanish sources are subject to the Income Tax in Spain for Non-Residents at a rate of 24%. However, they may be eligible for certain tax deductions and exemptions.

The Income Tax in Spain for Non-Residents is imposed by the Spanish government and collected by the Spanish Tax Agency. 

👉 Non-residents who earn income from Spanish sources must file a tax return with the Spanish Tax Agency every year.

How are Non-Residents taxed in Spain? 🤔

If you are not a resident of Spain, you will be taxed on your income from Spanish sources only. This means that if you are employed in Spain, or you have rental income from property in Spain, you will be liable for income tax in Spain for non-residents. However, if your only income is from foreign sources, you will not be taxed in Spain.

There are two types of tax residency in Spain: ordinary residency and tax residency. Ordinary residency is determined by your place of residence, while tax Residency is determined by your place of economic activity. 

Non-resident property owners in Spain 🏠

If you’re thinking about buying a house in Spain, you’ll need to have in mind the following information! In Spain, all non-residents who own property are required to file an annual income tax return. This is regardless of whether or not the property is rented out. The tax is calculated on the net imputed rental income of the property.

For those who are new to this concept, imputed rental income is the estimated rent that property could reasonably be expected to generate if it were leased on the open market. In other words, even if you don’t actually rent out your Spanish property, you’re still required to declare its potential rental income for tax purposes.

The good news is that there are significant tax breaks available for non-residents who own property in Spain. For instance, you’re allowed to deduct certain expenses related to the upkeep of your property (e.g. mortgage interest payments, insurance premiums, in some cases expenses from renovating a house, etc.). You can also deduct a percentage of your imputed rental income based on the number of years that you’ve owned the property.

How to file your Taxes in Spain

If you are a non-resident in Spain, you are still required to file your taxes. The process is a bit different, but it is not difficult. Here is a quick summary of what you need for filing your income tax in Spain for non-residents.

The first thing you need to do is get a tax identification number from the Spanish tax government. You can do this by going to their website or contacting the Spanish consulate in your country. Once you have your tax ID, you will need to fill out a tax return form 210. 

If you are a non-resident of Spain, it’s essential to be aware of the income tax laws in order to ensure that you are compliant. This guide provides an overview of the income tax in Spain for non-residents for the year 2022. Use this information as a starting point to ensure that you are up-to-date on your obligations and make sure to consult with a tax professional if you have any questions.