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Non-Resident Taxation Manual (February 2024)

Taxpayers residing in other Member States of the EU or EEA with which there are regulations on mutual assistance regarding the exchange of tax information

Regulations: article 46 Law IRNR ; articles 21 to 24 IRNR Regulation

Payers of Non-Residents' Income Tax (IRNR):

  • Who are individuals.

  • Who prove to be residents in another Member State of the European Union (EU) ( Annex V ) except residents in countries or territories qualified by regulation as tax havens (with effect from July 11, 2021 , references made to tax havens are understood to be made to the definition of non-cooperative jurisdiction. See Annex IV ) or in a Member State of the European Economic Area (EEA) with which there is an effective exchange of tax information (with effect from July 11, 2021, the regulatory references made to States with which there is an effective exchange of tax information are understood to be made to States with which there are regulations on mutual assistance regarding the exchange of tax information in the terms provided for in Law 58/2003, of December 17, General Tax, which is applicable. See Annex V ).

  • They must prove that at least 75% of their total income in the tax period is made up of the sum of the income from work and economic activities obtained during the tax period in Spanish territory, or they must prove that the income obtained during the year in Spain has been less than 90% of the personal and family minimum that would have corresponded to him in accordance with his personal and family circumstances had he been a resident in Spain and that the income obtained outside of Spain has also been less than said minimum.

  • when these incomes have actually been subject to IRNR.

They may request the application of this optional regime, the purpose of which is that effective taxation in Spain is calculated based on the Personal Income Tax (IRPF) rules, but without losing their status as IRNR taxpayers.

Order HAP /2274/2015, of November 19 ( BOE of November 24) approves the application model for the application of the optional regime and determines the place, form and deadline for its presentation.

Once the application has been formulated and compliance with the conditions that determine its application has been accredited, the Tax Administration, taking into account all the income obtained by the taxpayer in the tax period and their personal and family circumstances, and following the liquidation scheme of IRPF will determine the corresponding average tax rate.

The resulting average tax rate will be applied on the part of the tax base corresponding to the incomes obtained in Spanish territory.

If the previous result shows an amount lower than the amounts paid during the tax period by the non-resident taxpayer as IRNR on income obtained in Spanish territory, the excess will be returned.