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Non-Resident Taxation Manual (January 2023)

Imputed income from urban property

Internal regulations

Regulations:article 13.1.h) Law IRNR

In accordance with domestic legislation, non-resident taxpayers who are individuals, owners of urban property located in Spanish territory, used for their own use and not assigned to economic activities, or vacant, are subject to non-resident income tax on the imputed income corresponding to that property.


Under the Double Taxation Conventions, income from immovable property may be taxed in the State where the property is situated, whether it derives from the direct use or enjoyment of the property or from the letting or any other form of exploitation of the property.


Regulations:articles 24, 25 and 26 Non-Resident Income Tax Law

The taxable base corresponding to imputed income from urban real estate located in Spanish territory will be determined in accordance with the rules of IRPF.For these purposes, the amount resulting from applying the percentage that corresponds to the cadastral value of the property, which appears on the Property Tax (IBI) bill, must be computed as income:

  • Properties whose land register values have been reviewed or modified, or determined by a general collective valuation procedure, in accordance with the land register regulations, and have come into force in the tax period or within the ten previous tax periods.1.1% (the year of general collective valuation of a Municipality can be consulted in the section Ponencias de Valores of the Portal of the General Directorate of Cadastre,

  • Remaining properties:2%

Tax will be liable for this taxable base without deducting expenses of any kind.

The resulting amount is understood to refer to the full calendar year.The number of days is proportionally reduced when ownership has not been throughout the entire year or when it has been rented for part of the year.

If, at the time of accrual of the tax (31 December), the building has no rateable value or none has been reported to the owner, the taxable base for the property will be 50% of the higher of the following:The price, consideration or cost price of the property, or the value of the same established by the administration for other taxes.In these cases, the percentage shall be 1.1%.

In the case of buildings under construction and in cases in which the building cannot be used for town planning reasons, no income whatsoever shall be considered.

In the case of time-sharing, the tax is payable by the holder of the right in rem, distributing the property register value on the basis of the annual period of use.If, at the time of accrual of the tax, the building has no property register value, or none has been notified to the owner, the purchase price of the right to use will be taken as the taxable base.The taxation of property income for owners of property time-share rights shall not apply when the duration is no longer than two weeks a year.

If the building is owned by several natural persons, the income from the building or usufruct is considered obtained by each owner, proportional to their ownership share.

The tax rate is the current general rate:

  • Residents EU, Iceland, Norway and, from 11-07-2021, Liechtenstein:19%
  • Rest of taxpayers:24%

Deductions:of the tax liability may only be deducted:

Deductions for donations, under the conditions described in the Income Tax Act and in the Act on the tax regime of non-profit organisations and of tax incentives for patronage.