Until recently, Spanish regulations discriminated against non-resident owners living outside the European Union (or EEA), preventing them from deducting any expenses related to renting out their properties in Spain.
This meant paying tax on the total gross income, without being able to subtract property tax (IBI), community fees, or repairs. An unfair treatment that has come to an end.
The Key: The recent Spanish National Court (Audiencia Nacional) Ruling of July 28, 2025 has marked a turning point, declaring that this discrimination violates EU law.
What does the ruling say exactly?
The court has ruled that preventing non-EU residents from deducting expenses violates the principle of free movement of capital. Therefore, it opens the door for citizens of the UK, USA, Switzerland, Canada, LATAM, etc., to deduct necessary expenses for obtaining rental income.
Key Requirements for Deduction
- There must be a real rental. It does not apply to periods where the house is empty (imputed income).
- Expenses must be directly related to the rental (IBI, insurance, mortgage interest, repairs).
- You must have valid invoices and proof of payment.
💰 Could you have overpaid in the last 4 years?
We can analyse your case and check whether there's sufficient legal basis to file a rectification of your previous Form 210s. Each file requires individual analysis.
Request Free Initial GuidanceTechnical viability study: €150 + VAT, fully deducted if you proceed with the claim.
How to claim your money back?
The procedure involves submitting a request for rectification of self-assessment for non-prescribed years (generally the last 4 years).
It is likely that the Tax Agency will initially deny the request based on previous regulations, so it will be necessary to present allegations citing this new jurisprudence. It is a technical process with a favourable legal basis, subject to individual case analysis.
At Spain Tax Experts, we handle the entire administrative process, from calculating the refund to filing appeals.