The Non-Resident Income Tax is a direct tax that taxes income obtained in Spanish territory by individuals and entities not resident therein. Unlike the personal income tax, this tax is not going to be fixed so much in the personal circumstances of the taxpayer, since it is not taxed for all of its global income but for the income obtained in the territory.

This tax will be applied throughout the Spanish territory.

This tax is regulated in Royal Legislative Decree 5/2004, of March 5, which approves the Consolidated Text of the Non-Resident Income Tax Law (IRNR). In it, the tax regime of individuals and non-resident entities is collected jointly and homogeneously by the income obtained in Spain.

Taxation by the IRNR means taxing in Spain for the income of non-residents, only as long as they are considered obtained in our territory. Instead, residents must pay income tax in Spain for all their worldwide income, whatever the place where it was obtained.

IRNR taxpayers

a) Individuals and entities not resident in Spanish territory in accordance with Art. 6, LIRNR who obtain income in it, unless they are contributors to the Income Tax of Individuals.

b) Individuals who are residents in Spain as established in Art. 9, LIRPF

c) Entities in income allocation regime referred to in Art. 38, LIRNR

IRNR taxable event

Obtaining income, monetary or in kind, in Spanish territory by taxpayers for this tax. The benefits or assignments of goods, rights and services likely to generate income subject to this tax shall be deemed remunerated, unless proven otherwise.

Income that is subject to the Inheritance and Donations Tax will not be subject to this tax.