What is the NIE and how do I get one?

The NIE (Foreigner Identity Number) is a tax identifier required for any procedure in Spain. Apply at the police station or Spanish consulate in your country. You need a passport, EX-15 form, photos, and justification of purpose. Processing takes 1-3 weeks.

How much tax does a non-resident property owner pay in Spain?

Non-residents pay IRNR (19% on imputed income), annual IBI (0.4-1.1% of cadastral value), and waste tax. If renting out, declare 19% of net income. Galicia offers 99% reduction on inheritance tax for direct family members.

Do I need Spanish tax residency if I own property?

Not necessarily. Tax residency is determined by presence (over 183 days/year), center of economic interests, or family. As a non-resident, you pay IRNR instead of IRPF. You can own property without being a tax resident.

What taxes apply when inheriting property in Galicia?

Galicia applies a 99% reduction on inheritance tax for groups I and II. The effective rate can be as low as 0.2-1% of value. Municipal capital gains tax also applies. It is advisable to make a Spanish will.

Legal & Tax 28 June 2025 3 min 417

Income Tax Returns for Foreigners in Galicia: IRPF and IRNR Guide 2025

IRPF vs IRNR: which tax applies to you

The first question any foreigner with interests in Galicia must ask is whether they are considered a tax resident or non-resident in Spain. This distinction determines which income tax you pay, how it is calculated, what deductions apply and what filing obligations you have.

Criteria for tax residency: more than 183 days per year in Spain, main economic interests in Spain, or spouse and minor children residing in Spain.

Aspect	IRPF (Resident)	IRNR (Non-Resident)
Taxable base	Worldwide income	Only Spanish-source income
Tax rate	19-45% (progressive)	19-24% (flat rate)
Deductions	Extensive (state + regional)	Very limited
Filing	Annual mandatory return	Per income received
Main home deduction	Available	N/A
Withholding	15-45% by bracket	19-24%

Filing obligation for tax residents

You must file IRPF if: employment income exceeds 22,000 € from one payer (15,000 € from two+ payers if second exceeds 1,500 €), unwitheld investment income exceeds 1,600 €, rental income exceeds 1,000 €, or imputed property income exceeds 1,000 €.

Galicia's autonomous deductions in IRPF

Deduction	Maximum amount	Requirements
Rental of main home	300 € (under 35) / 600 € (disabled)	Income <25,000 €, contract after 2015
Investment in main home	Up to 9,040 € (home savings)	Contracts before 2013
Donations to Galician charities	10-15% of donation	Recognised Galician NGO
Large family	250-500 €	Valid large family certificate
Renewable energy installation	20% of cost (max 1,000 €)	Home in Galicia, invoice after 2021

IRNR: Non-Resident Income Tax

If you are not a tax resident but own property in Galicia, you must pay IRNR on Spanish-source income. Key categories for foreign property owners: imputed property income (1.1% or 2% of cadastral value), rental income (19% EU, 24% non-EU), and capital gains on property sales (19% EU, 24% non-EU, plus 3% buyer withholding).

Imputed property income: the hidden tax

Imputed property income is a fictitious income the tax authority assigns to empty properties. Calculation: cadastral value × 1.1% (properties with post-1994 valuations) or 2% = base. Apply 19% (EU) or 24% (non-EU). Example: Cee property with 100,000 € cadastral value → 1,100 € imputed → 209 €/year tax (EU).

How to file: step by step

IRPF (residents): April-June annually. Renta WEB platform at sede.agenciatributaria.gob.es. Access with digital certificate, Cl@ve PIN or reference number. Review pre-filled draft and submit.

IRNR (non-residents): Form 210. Filed quarterly (rental) or annually (imputed income). Via AEAT electronic portal. Deadlines: imputed income by December 31 of the following year; rental quarterly by the 20th of April, July, October and January.

Double taxation treaties

Country	Treaty	Pensions taxed in	Property income taxed in
UK	Yes	Country of residence	Spain
Germany	Yes	Country of residence	Spain
France	Yes	Country of residence	Spain
USA	Yes	Country of residence	Spain

Professional tip: If you are a tax resident in Galicia receiving a UK or German pension, verify that country is not withholding tax on your pension. Under treaties, pensions are taxed in your country of residence.

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Written by Cristina Vázquez

Real estate agent in Corcubión with over 10 years of experience in the Costa da Morte market.

Contact Cristina →