Taxes in Spain for Non-Residents in 2026: A Complete Guide to IRNR, Property and Investment

TL;DR:

• Non-residents pay tax on income sourced in Spain.
• The key tax for foreign property owners is IRNR.
• Even an empty property may trigger tax through deemed income.
• Rental income, property sales and significant assets are subject to separate rules.
• Before buying, it is important to assess the future tax burden and ownership structure.

Taxes in Spain for non-residents

Spain remains one of Europe’s leading destinations for property investment, seasonal living and long-term planning. Its sunny coastline, active real estate market and wide choice of properties attract investors from all over the world. Yet many buyers initially underestimate the tax implications. A common misconception is: “I am not a tax resident, so I hardly pay any taxes.” In practice, the rules are quite different.

Non-residents are required to pay tax on income generated in Spain. In some cases, tax obligations may arise even when no actual cash income is received. Understanding these rules helps reduce risks, avoid penalties and manage the overall tax burden when owning, renting out or selling property.

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How non-resident tax status is determined

Tax residency in Spain is not determined solely by the type of residence permit, passport or formal number of days spent in the country. The main criteria are:

• Physical presence in Spain for fewer than 183 days during the calendar year.
• The center of vital and economic interests – family, main assets, work – is located outside Spain.
• The person’s primary tax residency is registered in another jurisdiction.

Even with non-resident status, any Spanish-source income automatically creates tax obligations in Spain.

IRNR – the key tax for foreign owners

The main tax applied to non-residents is IRNR (Impuesto sobre la Renta de No Residentes), Spain’s non-resident income tax. It covers a wide range of income, including:

• Rental income from property.
• Capital gains from the sale of property.
• Income from work or business activity in Spain.
• Dividends from Spanish companies.
• Interest from bank deposits and other financial instruments.
• Royalties.
• Certain types of pensions.
• Deemed income from owning residential property.

Deemed income: why an empty property can still be taxable

One of the most common and costly mistakes is assuming that an unused property creates no tax liability. Spanish tax law treats property ownership as a potential economic benefit in itself. This is why the concept of Renta Imputada, or deemed income, exists.

The taxable base is calculated as follows:

• 1.1% of the cadastral value if the value has been updated within the last 10 years.
• 2% if the cadastral value has not been updated.

Current IRNR rates in 2026:

• 19% for tax residents of the EU and EEA.
• 24% for residents of other countries.

Example: the cadastral value of an apartment is €150,000 and the 1.1% coefficient applies. The deemed income base is €1,650.

• For EU/EEA residents: approximately €314 per year.
• For residents of third countries: approximately €396 per year.

This is not a property tax as such, but a modest annual charge on notional income. For most properties, the amount remains manageable, but it should not be ignored: interest and penalties can quickly increase the final cost.

Taxation of rental income

When a property is rented out, different rules apply:

• EU/EEA residents: 19% on net income, with justified expenses such as repairs, utilities, insurance and agency fees generally deductible.
• Residents of third countries: 24%, usually on gross income, with deductions significantly restricted.

Tax on property sales

The taxable gain is calculated as the sale price minus documented acquisition and improvement costs. The tax rate is 19% for EU/EEA residents and 24% for most third-country residents, unless a double tax treaty provides otherwise. In practice, the buyer often withholds 3% of the sale price as an advance payment toward the seller’s tax liability.

Tax on financial income

Dividends, interest on deposits, income from bonds and shares also fall under IRNR. Applicable rates may be reduced under international tax treaties.

Wealth tax and local charges

Non-residents pay wealth tax (Impuesto sobre el Patrimonio) only on assets located in Spain. Rules and thresholds depend on the autonomous community where the assets are located. If the value of assets is significant, the solidarity tax on large fortunes may also apply.

Separately, all property owners must pay the annual municipal property tax, IBI. It is typically around 0.4–1.1% of the cadastral value.

Tax reporting

The main form is Modelo 210. It is used to declare deemed income, rental income, capital gains from property sales and other types of Spanish-source income. Filing deadlines vary depending on the type of income. For deemed income, the deadline is usually the end of the following year.

Double tax treaties

Spain has signed more than 90 double tax treaties. These agreements may help to:

• avoid paying the same tax twice;
• reduce withholding tax rates on dividends, interest and royalties;
• determine which country has taxing rights over a specific type of income.

However, the existence of a treaty does not remove the obligation to comply with Spanish reporting rules when income is sourced in Spain.

As for Russia, Spain and Russia do have a double tax treaty. However, its application has been partially suspended.

What happened: in 2023, Russia issued a decree suspending key provisions of tax treaties with countries classified as “unfriendly,” including Spain.

How it works now: tax information exchange between the countries is not taking place, and the preferential rates for dividends, interest and royalties provided by the treaty do not apply.

Common mistakes made by foreign investors

• Ignoring deemed income on vacant properties.
• Confusing IBI with IRNR.
• Missing Modelo 210 filing deadlines.
• Misjudging one’s own tax residency status.
• Failing to keep proper records of deductible expenses.
• Using an inefficient ownership structure without considering international tax treaties.

Final thoughts

The Spanish tax system for non-residents is transparent and predictable, but it contains many technical details. Property ownership, rental activity and exiting an investment almost always involve reporting obligations and tax payments.

In 2026, the main tax burden for most foreign owners consists of IRNR, including deemed income, the regular IBI tax and, for larger portfolios, wealth tax. Timely planning, professional support and careful handling of tax returns make it possible to keep the tax burden under control and focus on the main goal: the return and value of owning property in Spain.

Alegría recommends carrying out a tax review at the property selection stage. This helps avoid common pitfalls and build an efficient ownership structure from day one.

This information does not constitute legal or tax advice and is not a public offer.