Many foreign nationals own a holiday home, second residence or investment property in Spain while living permanently in another country. What many do not realise is that, if you are not a tax resident in Spain but you own a property here, you are legally required to file IRNR – Non-Resident Income Tax every year.
This obligation applies whether you rent the property or not.
Failing to file IRNR is one of the most common and costly mistakes among non-resident property owners — and the consequences can escalate quickly.
1. Who Must File IRNR?
You must file IRNR if:
- You are not a tax resident in Spain, and
- You own a property located in Spain.
There are two types of IRNR depending on how the property is used:
A) Property Not Rented: “Imputed Income Tax”
Even if the property is empty or used only for holidays, Spanish law considers that it generates a theoretical rental income.
This is known as imputed income (renta imputada).
You must file one IRNR return per year for each property you own.
B) Property Rented: Tax on Actual Rental Income
If you rent out your property — long-term or short-term — you must file IRNR on the real rental income received.
This includes:
- Long-term leases
- Holiday rentals (Airbnb, Booking, etc.)
- Partial rentals (a room within the property)
Filing obligations for rental income:
- Quarterly IRNR declarations (Modelo 210)
- One declaration for each quarter with rental activity
- Optional annual summary (recommended)
EU/EEA residents may deduct allowable expenses.
Non-EU residents (including UK citizens after Brexit) generally cannot.
2. What Happens If You Do Not File IRNR?
The Spanish Tax Agency actively cross-checks property ownership and rental activity using:
- Land Registry records
- Utility consumption data
- Tourist-rental platforms
- Local councils
- Spanish bank deposits
If missing IRNR filings are detected, enforcement begins.
Step 1 — Formal Requirement (Requerimiento)
A notification is sent to the taxpayer’s official address:
- Home address abroad
- Spanish property address
- Address of a fiscal representative (if appointed)
The letter demands:
- Missing tax returns
- Documentation
- Explanations of the situation
Step 2 — Only 10 Business Days to Respond
The taxpayer must respond within 10 working days.
If they do not respond — often because they live abroad, the letter arrives late, the mailbox is not checked, or no fiscal representative exists — the Tax Agency assumes non-compliance.
3. Provisional Assessment Becomes Final Debt
If there is no response:
- Hacienda issues a provisional assessment, including tax, penalties and interest.
- Shortly after, it becomes a final assessment, legally binding and immediately enforceable.
Appeal options become limited and complex once the debt is final.
4. Enforcement Measures: Bank Seizure and Charges on the Property
Once the debt is final, forced collection begins.
A) If you have a Spanish bank account
Funds will be seized automatically until the debt is settled.
B) If you do not have a Spanish bank account
Hacienda registers the debt as a legal charge against the property.
This means the tax debt must be paid before:
- Selling the property
- Donating it
- Inheriting it
- Changing or extending a mortgage
Notaries and Land Registries will block the transaction until the debt is cleared.
5. Why Compliance Is Essential
Failing to file IRNR — whether imputed or rental — leads to:
- Penalties
- Interest
- Forced enforcement
- Bank account seizure
- A tax charge recorded against the property
For rental income, Hacienda may also request:
- Rental contracts
- Bank statements
- Tourist-rental licence details
- Proof of stays and payments
6. Recommendation: Use a Spanish Tax Adviser
Given that:
- Letters sent abroad often arrive too late
- Deadlines are short
- Penalties are severe
- Rental IRNR is quarterly and technical
…it is highly advisable to appoint a qualified Spanish gestor or tax adviser.
A professional can:
- File your annual IRNR automatically
- File quarterly rental income declarations
- Receive official notifications on your behalf
- Prevent penalties and enforcement
- Keep your tax situation fully compliant
The annual professional cost is minimal compared to the consequences of failing to file.