Review of the Non-Resident Tax (IRNR) with a request for payment of a new calculated fee

Importance of IBI Receipts in Non-Resident Income Tax (IRNR)

21 / Sep

The non-resident tax (for non-rented properties) is calculated based on the cadastral value of the property. This value can be found on the “property tax” receipts

or through the Cadastre’s website, using digital signature or NIE (Foreigner Identification Number) in combination with a support number.

Sometimes, the Tax Authority reviews the non-resident declarations from previous years for properties in Spain and “proposes” a different settlement than the one declared, requiring payment of the difference. This is often due to an error in calculating the tax, given the complexity of determining the cadastral values used for tax calculations.

This cadastral value is sometimes revised, which means that the percentage used to calculate your fee can vary from 1.1% to 2%. Be aware that this is almost double.

To know if it’s revised or not, you can check the IBI receipt, although some municipalities do not provide this information on their receipts, and you may need to make online checks that may not always be up to date. If the IBI from a different year was used as a reference and its revision status wasn’t indicated, in case of doubt, we apply the minimum in favor of the taxpayer. However, later, the tax authorities may conduct checks and request the unpaid difference for using the lower value.

That’s why it’s important to keep the IBI receipts every year to file your Non-Resident tax declaration.

Lucia Guillen Molina