Like every year, we take the opportunity to send a gentle reminder to all non-resident property owners in Spain that they are under a tax obligation to file Non-Resident Imputed Income Tax (or NRIIT, for short). This fiscal obligation applies regardless of whether you rent out - or not - your Spanish property. This tax should not be confused with rental income tax, which is due in January of every year.
You are taxed on the previous year (now in 2026, you are taxed on 2025).
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 taxes notional income.
Spanish Tax Authorities take the view that non-resident owners derive a benefit-in-kind from owning property, irrespective of whether this is true or not, and tax it accordingly.
The bottom line is that if you are non-resident, and own property in Spain, you need to file this tax once a year. If you don’t, you will eventually be faced with a nasty tax summons by Spain’s tax authorities that leads to placing a legal charge against your property at the land registry for unpaid tax. This charge at the land registry takes several thousand euros to be removed and can, in fact, jeopardise a property sale (as buyers only want clean titles).
Moreover, when you sell the property in the future, the tax office will practice a 3% retention on the sale proceeds on account of your capital gains tax liability as a non-resident seller. If you are not up to date with NRIIT, you forfeit your right to reclaim the 3% withheld by them. In plain English, you lose a lot of money.
The property’s value, taken for tax purposes, is the book value in the possession of the tax office.
This tax is collected on the 31st of December of each year. The last day to file this tax against your Spanish account is in mid-December. After that day, you need to settle this tax over the counter in Spain.
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
Other tax services available from LNA:
- Non-Resident Imputed Income Tax, NRIIT (Annual Fiscal Representation Service)
- VAT quarterly tax filing
- Spanish Inheritance Tax
- Wealth Tax
- Tax Form 720
- Holiday Rental Accounting Service (HRAS)
- Spanish Resident Income Tax (IRPF)
- Calculating seller's taxes and 3% tax rebate
At Larrain Nesbitt Abogados (LNA), we have over 23 years of experience specialising in taxation and property conveyance. We also assist clients with immigration & residency visas, and inheritance procedures (probate). You can contact us by email at info@larrainnesbitt.com, by telephone on our UK line (+44) 0754 3838 218 or Spanish line (+34) 952 19 22 88, or by completing our contact form.
Please note the information provided in this article is of general interest only and is not to be construed or intended as a substitute for professional legal advice. This article may be posted freely on websites or other social media so long as the author is duly credited. Plagiarising, whether in whole or in part, this article without crediting the author may result in criminal prosecution. Ní neart go cur le chéile. Voluntas omnia vincit.
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