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.
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.