In situ denitrification (DNT) and denitrification enzyme activity (DEA) were measured in a Mediterranean riparian forest soil during two periods under contrasting soil moisture conditions in order to investigate the factors that affect denitrification through the year. Results showed that in summer, soil moisture limited denitrification throughout the entire soil profile, whereas in winter, anaerobic conditions in the soil were more favourable for denitrifiers. The potential for denitrification was larger at shallow depths (<30 cm), and neither nitrate nor organic carbon limited denitrification significantly. Some denitrification was measured during winter at depths below 30 cm, suggesting that a reduction of groundwater nitrate could occur in some areas of this riparian forest during the wet period. In summer, low denitrification, together with high mineralization rates, brought about an increase of soil N, which could be leached to the stream channel during rainfall events. This study suggests that Mediterranean riparian soils act as sources or sinks of dissolved nitrogen depending on the period of the year.