Why is Spanish non-resident tax 19% or 24%?

A rate set by residence

Spanish non-resident income tax has a general rate of 24%. A reduced rate of 19% applies to residents of the EU and the European Economic Area: Norway, Iceland and Liechtenstein as well as the 27 member states.

What counts is where you are tax resident in the year you declare. A British passport holder living in Spain's neighbour Portugal and tax resident there pays 19%. An Irish citizen living and working in London pays 24%.

The Brexit effect

Before Brexit, UK residents paid the EU rate. Since the UK left, they have been in the general group. On a flat with €1,500 of imputed income, that means €360 a year instead of €285. Owners who still file at 19% from a UK address are underpaying, and the tax office can claim the difference with surcharges.

The second difference: expenses

The rate is not the only gap. For rental income, EU and EEA residents may deduct expenses such as community fees, insurance, IBI and interest in proportion to the days let. Residents elsewhere are taxed at 24% on the gross rent. For a home that is not let, nobody deducts anything, whatever the rate.

Where you live	Rate	Rental expenses deductible
Ireland, France, Germany, Netherlands, Norway…	19%	Yes
United Kingdom, Switzerland, United States, Russia, Morocco…	24%	No

How to prove your residence

The tax office may ask for a tax residence certificate issued by your home country, especially if you claim 19%. Irish residents can obtain one from Revenue. Keep a copy with each year's return.

US owners should note that the Spanish rate is only half the picture; US citizens report worldwide income and may have foreign account reporting such as FBAR, which an adviser can confirm. For your own amount, see how the tax is calculated or whether EU residents still pay.