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This article forms part of the CostaLuz Lawyers blog and is published for general informational and educational purposes only. It was prepared with the assistance of artificial intelligence tools and, before publication, was substantively reviewed and editorially approved by Maria de Castro, a Spanish-qualified lawyer registered with the Cádiz Bar Association under number 2745, founder of CostaLuz Lawyers and the person responsible for the editorial review of the published content.
This article does not constitute legal, tax, immigration, employment, estate-planning or investment advice and does not replace an individual assessment and the professional work of the appropriate CostaLuz Lawyers specialist. No action or omission should be based solely on this information.
If you’re an expat living in Spain under the so-called “Beckham Law” (the Special Expat Regime), and you rent out property here, a recent Spanish court ruling could make a big difference in your taxes.
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The Big News: A Game-Changing Ruling
In July 2025, Spain’s National Court ruled that non-EU property owners renting out Spanish real estate must be allowed to deduct related expenses (like mortgage interest, IBI, maintenance, insurance). Until now, this was a benefit only for EU/EEA residents.
The Court said denying this deduction to non-EU residents violates the EU principle of free movement of capital and Spain’s double tax treaties. This opens the door for thousands of landlords—previously taxed on their gross rental income—to claim deductions and potentially get refunds.
What About Beckham Law Expats?
People under the Beckham Law are Spanish tax residents but taxed like non-residents for income not covered by their employment (such as rental income). So, for rental income, they follow the same rules as non-residents and must declare it under Spain’s non-resident tax regime (IRNR), usually using Form 210.
Until now, only those with an EU address could deduct expenses. But with this new ruling, Beckham Law expats—regardless of nationality—may now be able to deduct expenses related to rental income too.
What You Can Do
- Check your previous returns (last 4 years) if you’ve paid 24% on gross rental income without deductions. You may be entitled to a refund.
- For upcoming filings, consider deducting valid property-related expenses. Just keep all invoices and evidence.
- Be cautious: The ruling isn’t yet confirmed by Spain’s Supreme Court. The tax office may still reject these deductions, so you might need to appeal.
Common Questions
Q: Does this mean I pay less tax on my Spanish rental income?
A: Potentially, yes. If you can deduct expenses like mortgage interest, repairs, and property tax, your taxable base drops and so does your bill.
Q: Can I apply this retroactively?
A: Yes, for the last four tax years—if you filed without deductions, you may file for rectification and request a refund.
Q: Do I need to live in the EU to benefit?
A: Not anymore. The ruling confirms that even non-EU residents should have the same rights to deduct expenses.
Q: What if the tax agency rejects my deductions?
A: You can appeal. This court decision is a strong argument and can be used in administrative or judicial claims.
Q: Does this ruling affect the 60% rental reduction?
A: No. That IRPF-only benefit still doesn’t apply under Beckham Law or for non-residents.
Bottom Line
Beckham Law taxpayers renting in Spain now have a strong legal basis to claim the same tax deductions as other EU landlords. It’s a big step toward tax fairness—but proceed smartly and with advice.
Need help? As specialists in international tax and Beckham Law, we’re here to guide you.
Related Rental & Property Law Guides
For a complete overview of taxation in Spain, see our Spanish personal tax guide.
Disclaimer: This information is provided for general guidance purposes only and does not constitute personalised tax or legal advice. Each case must be assessed individually according to the client’s specific circumstances. It is essential to consult a qualified specialist before taking any action or making any decision.
Legal Notice: The content on this page is provided for general informational and educational purposes only. It does not constitute legal advice and should not be relied upon as such. No action should be taken based solely on this content without first seeking independent professional legal counsel. Each case requires individual assessment based on its specific circumstances. CostaLuz Lawyers accepts no liability for actions taken or not taken based on this content.
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CostaLuz Lawyers regularly advises expat landlords on rental-expense deductions in Spain.
Reviewed by María Luisa de Castro, CEO at CostaLuz Lawyers — specialist in Spanish tax for expats & landlords — Updated 2026
This is general information, not definitive legal advice — every case requires individual analysis.