Non Resident Tax Spain 2017?
- Víctormanuel Paz
Non-resident income tax (NRIT) rates – For non-residents, income obtained without a PE is taxed at the following rates:
- General rate: 24%. For residents in other EU member states or European Economic Area (EEA) countries with which there is an effective exchange of tax information, the rate is 19%.
- Capital gains generated from transfers of assets: 19%.
- Interest: 19%. Interest is tax exempt for EU residents. Double taxation treaties (DTTs) normally establish lower rates.
- Dividends: 19% (DTTs normally establish lower rates).
- Royalties: 24% (DTTs normally establish lower rates).
- Pensions are taxed at progressive rates (between 8% and 40%).
How much is the non resident tax in Spain?
How much is non resident tax in Spain? – Non-resident taxpayers in Spain are taxed at the rate of 19-24 % on income earned in Spanish territory or income that arises from Spanish sources such as property. Specific rates apply to other kinds of income.
Why do I pay non resident tax in Spain?
Spanish income tax for non-residents who do not rent out their property in Spain (standard declaration) –
|Spanish name||Impuesto de la renta de no residentes, declaración ordinaria (IRNR)|
|Description||You pay this version of income tax in Spain if the following conditions apply: 1) You do not reside in Spain, 2) You own property in Spain, 3) The property is exclusively for personal use and you do not rent it out, 4) You have no other source of taxable income in Spain. Although you do not earn an income from the property, in the eyes of the Spanish tax authorities you still derive a benefit from owning a property in Spain and therefore have to pay an imputed income tax.|
|Tax base and rate||Tax base: 2% of the cadastral value of the property (found on the IBI receipt), or 1. 1% if the cadastral value has been revised since 1st January 1994. Tax rate 2016: Residents of EU, Iceland and Norway 19%, all others 24%.|
|Form||Use general section 210-A and indicating income type 02.|
|Dates||Presented before the 30th June each year. For example you have from 1st January to 30th June 2006 to declare tax on income during 2005.|
|Example||Cadastral value of property = 200,000 Euros Base = 2,200 Euros Tax = 19% x 2,200 Euros = 418 Euros|