The Lifeline Easy Guide to Non-resident Tax in Tenerife

Most people baulk at the idea of taxes and having to fill in a long form in Spanish can turn even the most muscle bound Adonis into a quivering lump of jelly.  Non resident tax returns are due by the end of December, so to avoid seeing grown men cry, we have put together a simple guide to non resident taxes for Tenerife Property owners. 

If you earn an income in Tenerife or rent out your property, then your tax return is going to be more complicated than we will deal with in this short article. 

Impuesto de la Renta de No Residentes (IRNR)

This is the tax we all love to hate.  Basically you are assumed to be letting out your home to tenants and collecting rent, whether you do or you don’t.  Here’s how it is calculated:

1.    Start with the cadastral value of your property.  You can see this amount on your IBI (local rates) receipt.  If your property was has not been valued since 1994, then calculate 2% of this amount.  If it has been valued since then (which is most likely), calculate 1.1% of the value.
2.    Divide that number by 2
3.    Multiply the result by 0.24 (the tax rate is 24%) and the resulting figure is how much you have to pay.

Here’s an example:
Cadastral value = €100,000
1.1% of that = €1,100
Divide by 2 = €550
24% of that = €132, which is how much you owe!

Patrimonio Tax

We loved hating this tax too, but fortunately it was zero rated, so you won’t have to pay this one.  Phew!

Filing your Tax Return

You will need to fill in form 210.  You can get this from your local tax office, a tax advisor or download it from the Agencia Tributaria (but the download doesn’t seem to be working from the English language section, so  download it from here). 

There is a booklet in English about non resident tax to help you, which you can download here.

And here's the page (in English) from the Agencia Tributaria all about non resident taxes.

The completed form should then be returned to the tax office before the end of December.  Good luck!