Gentle end-of-year tax reminder: Non-Resident Imputed Income Tax (NRIIT)

Like every year, we take the opportunity to gently remind all non-resident property owners in Spain they are under a fiscal obligation to file once a year a tax that is known as non-resident imputed income tax (NRIIT, for short). This is regardless of whether you rent out, or not, your Spanish property.

You are taxed on the previous year. So, in 2021 you are taxed on year 2020.

Basically, this tax is a legal fiction whereby the Spanish Tax Office surmises that you derive some form of financial benefit (income) from your Spanish home. That is why it is called non-resident imputed income tax, as it is notional income. Spanish Tax Authorities take the view an owner derives a benefit-in-kind from owning property, irrespective of whether it is true or not, and taxes it accordingly.

The bottom line is that if you are non-resident, and you own property in Spain, you need to file this tax once a year. If you don’t, you will eventually be landed with a nasty tax summons by Spain’s estate agency that may lead to placing a charge against your property for the unpaid tax.

The property’s value taken for tax purposes is the book value in possession of the tax office.

Deadline to file it: 31st of December of every year.

Please do not wait until the last day to file this tax. We strongly advise you to file it as soon as possible. We file this tax online all over Spain for a very competitive fee, it doesn’t matter where your property is located.

More information on our Fiscal Representation Service here: Non-Resident Imputed Income Tax

Further reading from idealista:

• Non-Resident Imputed Income Tax (NRIIT) in Spain