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Taxes for Non Residents in Tenerife

Updated: 03-05-2012 by

A Few Guidelines on Taxes for Non Residents in Tenerife

If you're a non resident and living in Tenerife, then you need to know all about the tax laws that apply to anyone who has a second home they rent out on the island. There's lot to think about as it is slightly complicated.

What is Impuesto de la Renta de No Residentes (IRNR)?

IRNR is a tax all people love to hate. If you own a property on the island then you have to pay a tax whether you're renting out or not.

How is this tax calculated?

First you have to know the cadastral value of any properties you might own in Tenerife.

Where do I find the cadastral value of my property?

You can find this on IBI receipts (local rates). Properties not valued since 1994 are calculated at 2% of the amount. Properties valued after this date are calculated at 1.1% of the value. Next you have divide this by two and then multiply the figure by 0.24 (rate of tax is set at 24%). This will give you the amount you have to pay in IRNR taxes.

Example:

Cadastral value of property= €100,000
1.1%    = €    1,100
Divided by 2    =  €   550
24% of this figure =  €    132    This is the amount to pay

What is Patrimonio Tax?

This is a zero rated tax that non residents do not have to pay

What Tax Return do I need to fill in?

You need to fill out a form 210 and you can find this at your local tax office or you can download one from Agencia Tributaria. Another alternative is to get one from a tax advisor.

Do I have to submit my Tax Returns in Tenerife?

Once completed the form has to be submitted to the tax office.