Information

In accordance with Spanish tax law, foreign citizens (individuals) who are not residents of Spain are by default credited with income from the ownership of real estate even if it is not rented out, and the owner does not receive any real income from owning it.

IRNR (impuesto sobre la renta de no residente) is a non-resident income tax. The income charged to non-residents is 2% of the cadastral value of the property (the cadastral value can be seen on the IBI municipal property tax receipt). The tax rate on this income is 24%, i.е. about 0.5% of the cadastral value of housing is paid to the budget. In practice, this is a small amount, often coinciding with the municipal tax.

The tax is paid in the current year for the previous year. That is, in 2014, before December 31, you must pay tax for the past 2013. The tax is not automatically deducted from the bank account number. Our company provides the service of paying this tax in the following sequence:

1. We send you a letter asking you to agree to work on the payment of the IRNR tax.

2. After receiving your consent and the necessary information to complete the declaration, we complete Form 210.

4. We inform you of the amount of tax and invoice for our services 25 €/declaration based on one owner per declaration.

5. After your confirmation for payment, we provide a declaration for payment to your bank along with an invoice for services.

6. After that, we will send you a declaration with the seal of the bank on payment by e-mail.

If there are two or more owners, then each pays in proportion to his % participation in the property.

For each owner and property, a separate declaration is submitted. This means that if you have two owners and you have two properties for two, then in total you need to fill out four declarations.

Failure to pay this tax may result in penalties, up to visa denial and bank account seizure. This is especially true for owners wishing to apply for a residence permit.

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One-off taxes and expenses when buying a property in Tenerife

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Mortgage in Spain

The Process of Buying a Property in Tenerife

How to prepare the property for sale?

» How to safely buy land in Tenerife to build a house?

» How to prepare the house for sale?

Costs and taxes for property maintenance in Tenerife

» IRNR - non-resident income tax

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