Which One is for You: IRPF or IRNR?
In Spain, IRPF (Impuesto sobre la Renta de las Personas Físicas) and IRNR (Impuesto sobre la Renta de No Residentes) are both taxes on income, but they apply to different categories of individuals based on their residency status. After 183 days, you’re a Spanish tax resident.
You cannot choose between being taxed under IRNR (Impuesto sobre la Renta de No Residentes – Non-Resident Income Tax) or IRPF (Impuesto sobre la Renta de las Personas Físicas – Resident Income Tax).
The law determines which regime applies based on your tax residence status, not personal preference.
Tax Residency and Applicable Regime
| Status | Applicable Tax Regime | Tax Scope | Key Features |
|---|---|---|---|
| Resident in Spain (spends >183 days in Spain during the year, or has Spain as the main centre of economic interests) | IRPF – Personal Income Tax | Worldwide income (employment, pensions, rentals, etc.) | Progressive tax rates (up to ~47% depending on region). Must declare all global income and assets (Modelo 720). |
| Non-resident (spends ≤183 days and has main interests abroad) | IRNR – Non-Resident Income Tax | Spanish-source income only | Flat rate (usually 24%, or 19% for EU/EEA residents). No obligation to declare foreign income. |
Main Differences Between IRPF & IRNR
IRPF is for residents and taxes their global income, with a progressive tax structure and various deductions. IRNR applies to non-residents, taxing only their Spanish-sourced income at generally flat rates, with fewer opportunities for deductions.
| Aspect | IRPF (Impuesto sobre la Renta de las Personas Físicas) | IRNR (Impuesto sobre la Renta de No Residentes) |
|---|---|---|
| Applicability | Applies to residents of Spain. | Applies to non-residents who earn income in Spain. |
| Tax Base | Global income (income earned both inside and outside Spain). | Only income earned within Spain. |
| Tax Rates | Progressive tax rates ranging from 19% to 47% depending on income level and region. | Flat rates, typically 24% for non-EU/EEA residents and 19% for EU/EEA residents. Specific rates may vary based on the type of income. |
| Deductions and Allowances | Residents can apply various deductions and allowances (e.g., personal allowances, family deductions, mortgage deductions). | Very limited deductions. Non-residents generally cannot apply personal deductions. |
| Filing Obligations | Residents must file an annual tax return if their income exceeds certain thresholds. | Non-residents are required to file if they earn income subject to tax in Spain. |
| Double Taxation Treaties | Income may be exempt or reduced under double taxation treaties, but residents must declare all income. | Double taxation treaties can also apply, often reducing or exempting certain types of income from taxation in Spain. |
Tax Guide 2026
If you need an overall view of tax obligations, click on Taxes in Spain Guide 2026.
Pros & Cons
IRPF is for residents and taxes their global income, with a progressive tax structure and various deductions. IRNR applies to non-residents, taxing only their Spanish-sourced income at generally flat rates, with fewer opportunities for deductions.
| Aspect | IRPF | IRNR |
|---|---|---|
| Deductions | PRO: Deductions and allowances available | CON: Limited or no deductions available |
| Taxable Income | CON: Global income is taxable | PRO: Only Spanish-sourced income is taxable |
| Benefits | PRO: Access to social benefits | CON: No access to Spanish tax benefits |
| Tax Rates | CON: Higher marginal rates (19% to 47%) for high earners | CON: Higher flat tax rates (24% for non-EU/EEA; 19% for EU/EEA) |
| Filing | CON: Complex filing requirements | PRO: Simpler filing process |
| Income Rates | PRO: Progressive tax rates can benefit lower incomes | PRO: Potential tax relief via treaties |
Tax Rates (For Comparing Scenarios)
- Non-Resident Income Tax (IRNR): Flat 24% on Spanish-sourced income (or 19% for EU/EEA citizens).
- Beckham Law (for new arrivals working for a Spanish company): Flat 24% rate on Spanish-sourced income up to €600,000 for the first six years. (A high-value consultation option).
- Savings/Investment Income (for Residents): Progressive rates: 19% (up to €6,000), 21% (up to €50,000), 23% (up to €200,000), etc.
When Can You Choose IRPF or IRNR? Beckam Law and Others
In Spain, there are specific circumstances where an individual can choose between being taxed under IRPF (Impuesto sobre la Renta de las Personas Físicas) or IRNR (Impuesto sobre la Renta de No Residentes). Here are the main scenarios where this choice might be available:
1. The Beckham Law (Special Expatriate Tax Regime)
- Who can choose?
Individuals who move to Spain for work purposes and meet specific criteria. - Choice Available:
Eligible expatriates can choose to be taxed under IRNR instead of IRPF for a period of up to 6 years (ongoing year plus five more). - Why choose IRNR?
Under this regime, the individual is taxed as a non-resident at a flat rate of 24% on income earned in Spain (up to €600,000) and 47% above that threshold, without having to declare global income. This can be advantageous for high earners who want to avoid the progressive tax rates of IRPF and the obligation to report worldwide income.
2. Dual Residency Situations
- Who can choose?
Individuals who are considered residents in Spain but also qualify as residents in another country under a double taxation treaty. - Choice Available:
Depending on the treaty, individuals may be able to choose which country’s tax regime they prefer to be taxed under. - Why choose IRNR?
If a treaty provides more favorable tax treatment under non-resident status, choosing IRNR might reduce the tax burden on Spanish-sourced income.
3. Returning to Non-Residency After Being a Resident
- Who can choose?
Individuals who have been residents and are leaving Spain. - Choice Available:
They can choose to be taxed as non-residents (IRNR) once they cease to be tax residents. - Why choose IRNR?
If they maintain some income sources in Spain but no longer reside there, IRNR would limit taxation to Spanish-sourced income only.
4. Temporary Assignments or Split Year Residency
- Who can choose?
Individuals on short-term assignments in Spain or those who only become residents partway through the year. - Choice Available:
Depending on the duration of stay and other factors, they may be able to choose between IRPF and IRNR for the relevant tax year. - Why choose IRNR?
It may be more beneficial to pay a flat rate on Spanish income rather than being subject to global taxation under IRPF.
General Guidelines
- Choose IRPF: If you are a resident in Spain for tax purposes (spending more than 183 days in the country or having your primary economic interests in Spain) and prefer access to deductions, allowances, and progressive tax rates.
- Choose IRNR: If you are eligible under the Beckham Law, want to avoid global income reporting, or are a non-resident with limited income sources in Spain.
