An MR element incorporates a layered structure. The layered structure includes: a spacer layer having a first surface and a second surface that face toward opposite directions; a free layer disposed adjacent to the first surface of the spacer layer and having a direction of magnetization that changes in response to a signal magnetic field; and a pinned layer disposed adjacent to the second surface of the spacer layer and having a fixed direction of magnetization. The spacer layer is a layer at least part of which is made of a material other than a conductor, and the spacer layer intercepts the passage of currents or limits the passage of currents as compared with a layer entirely made of a conductor. The MR element further incorporates a conductive film that is disposed on the peripheral surface of the layered structure and allows conduction between the free layer and the pinned layer.