Income obtained from sources other than a permanent establishment must be filed separately for each partial or total accrual of income subject to tax.
The tax applies operation by operation, so there is no possibility to compensate between capital gains and losses.
Taxable base
Generally, the taxable base is the net amount received, without deduction of any expenses.
In case of provisions of services, technical assistance, installation or assembly works derived from engineering contracts and, in general, from activities or financial operations performed in Spain not through a permanent establishment, the taxable base will be the
difference between the gross amount and the wages and salaries, supplies of materials incorporated into the work or service and other supplies.
The taxable base corresponding to earnings derived from reinsurance operations will be the total amount of the reinsurance premiums
paid to the nonresident reinsurer.
The taxable base corresponding to capital gains will be determined applying the general income tax rules to each capital transfer.
With regard to capital gains derived from stock or shares in an company whose assets are mainly real estate situated in Spain or which attribute to the holder the right to use real estate assets located in Spain, for the proceeds derived from the transfer of stock or shares of organizations that are resident of countries with which there does not exist an effective exchange of tax information, the value of the transfer will be determined by market value, at the moment of the transfer, of the real estate property located in Spain or of the rights to use those assets. The real estate assets located in Spain will remain liable for the payment of the tax.
The taxable base corresponding to the imputed income from real estate assets located in Spain (in the case of nonresident individuals)
will be determined in accordance with Income Tax regulations.
Tax rate
1) Generally, 24% (up to December 31, 2006 it was 25%).
2)Wages and salaries, received by nonresident individuals by virtue of a fixed term contract for seasonal workers, within the scope of Labor regulations, 2%.
3) Dividends and other income derived from the stake of ownership in a company. The tax rate varies based on the year in which it is due
4) Interest and other income obtained through the assignment of owned capital to others. The tax rate varies based on the year in which it is due (see table).
5) Royalties paid to a company that is a resident of a EU country or to a permanent establishment of this company located in another Member State of the EU, 10%, provided certain requirements are met (effective January 1, 2005).
6) Pensions and other similar benefits received by individuals who are nonresidents in Spain, whoever the person who generated the right to the payment may be, will be taxed in accordance with a specific scale
7) Income derived form dependent personal services of individuals who are nonresidents in Spain, will be taxed at 8%.

8) Proceeds derived from reinsurance operations, 1.5%.
9) Shipping or air transport organizations resident abroad, whose ships or aircraft are physically present in Spain at any point, 4%.
10) Capital gains derived from the transfer or reimbursement of shares or stakes representative of capital or assets of mutual investment institutions, which will pay tax at the rate in force for the year in which the tax is due
11) Other capital gains that come to light during the transfer of assets other than those mentioned above, 18%

Reliefs
• Tax relief on gifts to charities, under the conditions described in the General Personal Income Tax Act (IRPF) and in the Act setting
up a tax regime for not for profit organizations and of tax incentives for sponsorship.
• Tax that may be withheld on the taxpayer's income.

Tax refunds

Nonresident taxpayers will not be obliged to file a tax return form corresponding to income when tax has been withheld. Neither will they be compelled to file a tax return for those types of income subject to withholding but exempt by virtue of the provisions of the tax laws of their country of residence or by the application of a double taxation agreement.
In particular, there is an obligation to file a tax return in the following types of income:
• Income subject to taxation by nonresident income tax but exempt from the obligation of withholding or paying on account of in-kind income. This includes, for example, capital gains derived from the sale of shares.
• Income presumed from ownership of urban real estate assets (only individuals).
• Earnings paid by people who are not withholding agents by law. For example, proceeds derived from the renting of real state when the tenant is an individual and the rent is paid outside the framework of an economic activity.
• Capital gains earned by transfer of real estate assets.
• In order to request a refund of an excess of tax withheld.

Ordinary tax return: Form 210
It is used for any type of income (only one type of income at a time) got by a nonresident with no permanent establishment, except for capital gains derived from the transfer of properties assets which are to be filed on Form 212.
Where to file the return:
The returns must be filed at the offices of the Spanish Tax Agency according with the following rules:
• For income derived from real estate ownership, the local Tax Agency where the building is located
• Other cases:
- When the tax return is filed by a Representative, a Surety, or a Withholder, the office corresponding to their tax domiciles.
- When the tax return is filed by the taxpayer, the office corresponding to the tax representative’s domicile.
In the absence of a representative:
a) If the tax return derives form a profit, the office corresponding to the address of the payor.
b) If the tax return derives from capital gains subject to withholding, the office corresponding to the withholder's tax address; in the absence of a withholder, the office corresponding to the tax address of the trustee or manager of the assets or rights. As a last resort, the Madrid Tax Office.

Payment or request for refund:
• For tax returns where tax is owed, the taxpayer will proceed as follows:
The tax return shall be filed, whether or not it carries taxpayer’s identifying labels, and the payment shall be made at any collaborative tax collecting organizations, most banks located in Spain
• For tax returns claiming a refund or with no amount due, the return shall be filed in the respective Tax Branch, according to rules previously outlined.
Deadline:
The deadline for filing tax returns is:
• Tax returns with an amount due or 0 refund:
- Generally, one month from the date of accrual of the income reported.
- The income presumed from the ownership of urban buildings must be declared between January 1 and June 30 following the tax year.
Nonresident taxpayers, whose estate subject to tax in Spain is exclusively comprised of a house, may file both the Nonresident Income Tax (for the imputed income) and the Wealth Tax return (corresponding to its ownership) on Form 214. The filing and payment of this tax shall be made anytime during the calendar year immediately after the year to which the tax refers.
• Tax returns claiming a refund: the return may be filed after the end of the period established for the payment of the tax that has been withheld, with the following deadlines:
1) If the request is derived from the application of an Agreement to avoid double taxation, except in the case described in the second paragraph following:
- related to income accrued after January 1, 2003, four years, except when the Ministry of Finance has established a different deadline and no reciprocate agreement exists.
- related to income accrued until December 31, 2002, two years.
2) If the request derives from the application of an Agreement to avoid double taxation , and relates to income referred to under an Order for the development of the Agreement , provided the Order is in force at the time of accrual, during the time period stated in that Order.
3) In all other cases, four years.

Collective return: Form 215
Allows to accumulate various taxes due in the same quarter by one or several taxpayers within the same tax return.
This tax return cannot include the following types of income:
• Income where the taxable base is determined by the difference between gross income and certain expenses.
• Imputed income from urban real estate assets.

Deadlines:
The first 20 calendar days of the months of April, July, October and January. For returns claiming a refund, the deadlines are the same as those for Form 210.

Where to file the return and make the payment:
The place for filing the return and making the payment is the same as that indicated for Form 210.

Taxation of the most common types of income