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Non-resident Tax Manual (February 2023)

Imputed income from urban real estate

Internal regulations

Regulations: Article 13.1.h) IRNR Act

In accordance with internal regulations, non-resident taxpayers who are natural persons, owners of urban properties located in Spanish territory, used for their own use not affected by economic activities, or empty, they are subject to Income Tax for Non-Residents for the income charged for these properties.


In accordance with the Agreements to avoid double taxation, income obtained from real estate may be subject to taxation in the Land of situation of the properties, whether they derive from the direct use or enjoyment of the lease or any other form of operation of the same.


Regulations: Articles 24, 25 and 26 of the Non-resident Income Tax Act

The taxable base corresponding to the income charged for urban real estate located in Spanish territory will be determined in accordance with the Personal Income Tax regulations. For these purposes, the amount resulting from applying the percentage corresponding to the cadastral value of the property, which is included in the Property Tax bill (IBI), must be calculated as income:

  • Properties located in municipalities where the cadastral values have been reviewed, modified or determined by means of a general collective valuation procedure , in accordance with the land registry regulations, and have entered into force in the tax period or within the ten previous tax periods: 1.1% (The year of collective assessment of a municipality's general nature can be found in the Securities Ponences section of the Portal of the Directorate General of the Land Registry,

  • Other properties: 2%

It is taxed on the aforementioned taxable base, without deducting any type of expense.

The resulting amount is understood to be referring to the whole calendar year. It will be reduced proportionally to the number of days, when it has not held ownership throughout the year, or when part of the same has been leased.

If at the date of accrual of the tax (31 December) the properties lacked the cadastral value or the latter had not been notified to the holder, 50% of the greater of the following values will be taken as the basis for imputation: The price, consideration or value of the acquisition of the property, or the value of the property verified by the Administration for the purposes of other taxes. In these cases, the percentage will be 1.1%.

In the case of building properties and in cases where, for urban reasons, the property is not subject to use, no income will be estimated.

In the case of rights of use per turn of real estate, the allocation will be made to the holder of the real right, prorating the cadastral value according to the annual duration of the period of use. If at the date of accrual of the tax the properties lacked the cadastral value, or the latter had not been notified to the holder, the acquisition price of the right of use will be taken as the basis for imputation. The owners of property rights will not be charged for the use of real estate assets by the time of their term if they do not exceed two weeks per year.

In cases where the ownership corresponds to several people, the income corresponding to the real property or enjoyment right in question will be considered to be obtained by each of them in proportion to their participation in this ownership.

The tax rate is the general tax rate in force:

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

Deductions: Only:

Deductions for donations, under the terms set out in the Personal Income Tax Act and the Law on the tax regime of non-profit organisations and the tax incentives for patronage.