ELITE WORLD ESTATES BLOG

Written by Anita Orłowska on 10.02.2026 - 7m reading

Written by Anita Orłowska on 10.02.2026- 7m reading

Written by Anita Orłowska on 10.02.2026 - 7m reading

Buying property in Spain often starts with dreams of sunshine, the sea, and a more relaxed lifestyle. Only later do questions arise that can surprise even well-prepared buyers: will I be considered a tax resident in Spain, or a non-resident – and what does that actually mean in practice?

Contents:

This is not a purely formal issue or something that can be “sorted out later”. In reality, the difference between resident and non-resident status determines which income is taxable, which tax rates apply, and whether the Spanish tax authorities will take an interest in income earned outside Spain.

In Spain, tax residency does not depend on nationality, registration, or property ownership alone. Facts matter more than declarations.

You are considered a tax resident if you:

• spend more than 183 days per year in Spain,

• have your centre of vital or economic interests in Spain,

• have your immediate family (spouse, children) living in Spain.

Meeting just one of these conditions may be sufficient for the Spanish tax authorities to challenge non-resident status.

Spanish tax residents are subject to worldwide taxation. This means:

• all income must be declared, regardless of where it is earned,

• employment income, business activity, rental income, dividends, interest, and capital gains are included,

• an annual IRPF tax return is required.

Income earned in Poland or other countries must also be declared, with double taxation handled through international treaties.

For property owners, verifying the legal status of the property is essential, especially in cases of rental, sale, or inheritance. Proper due diligence is a key element of tax and legal safety.

Non-residents in Spain pay tax only on income sourced in Spain, typically:

• rental income from Spanish property,

• capital gains on property sales,

• other locally generated income.
   

Non-residents:

• do not declare worldwide income,

• do not file annual IRPF returns,

• use specific non-resident tax forms (e.g. Modelo 210).
   

This status is often suitable for individuals who:

• live and work outside Spain,

• treat Spanish property as an investment or second home,

• do not exceed residency thresholds.

Non-residents (IRNR):

• rental income: 19% (EU residents),

• no progressive scale,

• no personal or family allowances,

• deductible expenses allowed for EU residents.
   

Residents (IRPF):

• progressive scale approx. 19%–47%,

• rates depend on income level and autonomous region,

• access to allowances and deductions.
   

In practice:

• for one property and foreign income, non-resident status may be more efficient,

• for permanent life and work in Spain, resident status becomes unavoidable.

Most problems arise not from tax rates but from incorrect assumptions, such as:

• believing property ownership alone has no tax impact,

• failing to track days spent in Spain,

• remote work from Spain while claiming residency elsewhere,

• inconsistencies between lifestyle and tax declarations.
   

Consequences may include:

• tax arrears,

• penalties and interest,

• double taxation.

Resident and non-resident taxation are two fundamentally different systems. Neither is inherently better – the correct status depends on where you actually live, work, and manage your assets.

When buying property in Spain, tax planning should always go hand in hand with legal and long-term planning. This  integrated approach is the best way to avoid costly mistakes.If you would like to assess which tax status is safer for you or how to prepare properly for a property purchase in Spain, feel free to contact us directly.

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Let us narrow down the search among the properties available through us, by contacting us and finding the best options for you. 
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Please enter your contact details below and we will contact you as soon as possible.

Let us narrow down the search among the properties available through us, by contacting us and finding the best options for you. We are here to help you! Please enter your contact details below and we will contact you as soon as possible.

Let us narrow down the search among the properties available through us, by contacting us and finding the best options for you. We are here to help you!
Please enter your contact details below and we will contact you as soon as possible.