Editorial transparency and use of artificial intelligence
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 are a non-EU owner renting out a property in Spain — American, British, Canadian, anyone outside the EU — you were long taxed more harshly than EU owners: taxed on gross rent with no deductions. That has changed.
A 2025 National Court (Audiencia Nacional) ruling confirmed that non-EU non-residents can deduct property expenses — mortgage interest, IBI, community fees, repairs, insurance, depreciation — in the IRNR, just like EU owners; limiting it to the EU breached the free movement of capital. If you have been paying tax on gross rent, you may be owed a refund. This page explains the deduction and how to claim it.
Last updated: 14 January 2026
Quick Answer
What: Landmark court ruling allowing non-EU property owners to deduct rental expenses in Spain.
Who it’s for: Non-EU nationals (UK, US, Canadian) who own rental property in Spain.
Key fact: Non-EU owners can now deduct mortgage interest, repairs, and management fees — previously only available to EU owners.
CostaLuz difference: personalised quote legal advice. No percentage charges. Bilingual team since 2006.
Recent court decisions in Spain have recognised the right of non-EU property owners who rent out property in Spain to deduct certain rental-related expenses when declaring Non-Resident Income Tax.
While this represents a positive development, the current legal landscape requires careful and balanced consideration, rather than rushed action.
A Favourable Judicial Trend — Still Awaiting Final Clarification
Spain’s National Court has ruled in favour of allowing non-EU landlords to deduct rental expenses, bringing Spanish tax practice closer to principles of equality applied within the European Union.
However, the Spanish Tax Agency (Hacienda) has indicated that it will continue to dismiss administrative appeals until the Spanish Supreme Court issues a final and binding ruling on the matter.
A Supreme Court decision may reasonably take two to three years.
Why a Measured Approach Is Advisable
Given this context, it is important to understand that:
- Administrative claims may not be successful in the short term
- Legal certainty will only be achieved once the Supreme Court has ruled
- Not all cases justify the same level of procedural or financial effort
For many property owners, the key question is not whether a claim is theoretically possible, but whether pursuing it is proportionate and cost-effective in light of their specific circumstances.
The Importance of a Balanced Legal and Tax Strategy
Rather than pursuing blanket claims, a prudent strategy may involve:
- Reviewing past tax years still open under limitation periods
- Assessing the amount of potential deductions in relation to expected costs
- Evaluating whether to file, defer or simply monitor developments
- Ensuring any action taken preserves options without unnecessary expense
In this context, professional assessment is essential to strike an appropriate balance between potential tax recovery and procedural costs.
Strategic Considerations for Non-EU Landlords
Each case should be assessed individually, taking into account factors such as:
- Rental income levels and deductible expenses
- Number of tax years involved
- Likely administrative and legal costs
- Tolerance for long timelines and legal uncertainty
In some cases, adopting a wait-and-see approach, supported by professional monitoring of legal developments, may be the most sensible course of action.
Conclusion
While the legal trend appears favourable for non-EU property owners, the absence of a Supreme Court ruling means that caution and strategic planning remain essential.
A carefully considered approach — based on proportionality, cost-benefit analysis and expert guidance — will ensure that any decision taken today remains appropriate, regardless of how long the final judicial clarification may take.
For this reason, seeking professional advice before acting is strongly recommended.
Related Rental & Property Law Guides
Non-EU Rental Tax Treatment: Before vs After Court Ruling
| Item | Before Ruling | After Ruling (TJUE C-478/21) |
|---|---|---|
| Tax Base | Gross rental income | Net rental income (expenses deductible) |
| Tax Rate (non-EU) | 24% on gross | 24% on net (effectively lower) |
| Deductible Expenses | Not allowed | Mortgage interest, repairs, insurance, IBI, community fees |
| Effective Tax Burden (example) | 24% × 12,000 = 2,880 EUR | 24% × 6,000 (net) = 1,440 EUR |
| Legal Basis | Art. 24.1 IRNR Law | EU free movement of capital (Art. 63 TFEU) |
| How to Claim | N/A | File Modelo 210 with expenses + request rectification for past 4 years |
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.
Frequently asked questions
Which court ruled that non-EU landlords can deduct rental expenses in Spain?
The Audiencia Nacional, in ruling SAN 3630/2025 of 28 July 2025. It is not a binding Supreme Court precedent.
Which rental expenses does the ruling treat as deductible?
Mortgage interest, IBI, community fees, repairs and maintenance, insurance, supplies linked to the let, and depreciation.
How does a non-EU landlord claim the deduction on past filings?
By filing a rectification of each Modelo 210 (rectificacion de autoliquidacion) within the open four-year window, claiming the deductions plus interest.
Does the Spanish Tax Agency accept these deduction claims yet?
No. The Spanish Tax Agency continues to reject these claims until the Supreme Court or the Court of Justice of the EU rules definitively, which may take two to three years.
We provide independent legal advice on Spanish law for international clients, with personalised quote pricing and no percentage of recovery. For a fixed-price quote on your specific matter, email marialuisa@costaluzlawyers.es.
Thinking of Buying a Spanish Property to Rent Out?
Knowing the tax rules is only one side of the picture. Before you buy, you also need to verify that the property is legally permitted to be rented in its specific location — community, municipality, regional and national-registry compliance. CostaLuz Lawyers’ QuickLease service is the Rental Compliance Pre-Purchase check that catches the problem before you sign. 1.000€ + IVA. Reviewed by María Luisa de Castro.
Learn more about QuickLease → · Email us your property details · Response in 24 hours.
Important — this is not yet final. The decision is a ruling of the Audiencia Nacional (SAN 3630/2025, 28 July 2025), not a binding Supreme Court precedent. The Spanish Tax Agency (Hacienda) continues to reject these claims until the Supreme Court — or the Court of Justice of the EU — rules definitively, which may take two to three years.
Why act now anyway: Non-Resident Income Tax can only be reclaimed for the last four years (the general limitation period). Filing a rectification now is a protective step — it stops the four-year clock on those years and puts you in line for a refund if the higher courts confirm the ruling. It is not a guarantee of repayment today.
What you can reclaim, and how
If you are a non-EU non-resident who filed Modelo 210 on gross rent without deductions, the expenses the ruling treats as deductible include mortgage interest, IBI, community fees, repairs and maintenance, insurance, supplies linked to the let, and depreciation. The process is to file a rectification (rectificación de autoliquidación) of each Modelo 210 within the open four-year window, claiming the deductions plus late-payment interest. Because Hacienda will likely reject it pending the Supreme Court, the filing preserves your right rather than producing an immediate refund. See our rental income tax guide and the wealth-tax page for the wider non-resident picture.
Non-EU owner taxed on gross rent? Book a call and we will tell you what you can now deduct — and whether you can reclaim overpaid tax. No obligation.
Check if you’re owed a refund →
Prefer to write first? Send a message → — María replies within one business day.
Need to speak now? +34 919 499 342 (EN/ES, 24h). Office: +34 956 092 687. Costaluz Lawyers — María Luisa de Castro, ICA Cádiz nº 2745.
This ruling directly changes the numbers behind a realistic yield calculation — see our guide to calculating your Spanish rental yield after tax.
24 % so as a non EU Citizen/Resident, does this mean I can claim back my overcharges ? What is the cost of processing this and timescale ? So we still as non EU pay 24% but can offset expenses now ?
Yes. The rate stays 24% for non-EU/EEA, but you can now deduct actual rental expenses (property tax/IBI, community fees, insurance, repairs/maintenance, management fees, mortgage interest, building depreciation, etc.). That means you can claim refunds for non-prescribed periods (last 4 years) where you were taxed at 24% on gross rent.
How to do it (fast):
File an amended Form 210 for each affected period (and, if applicable, a refund of undue payments request).
Attach lease, rent statements, invoices & proof of payment, cadastral data, and a tax residency certificate.
Costs: no AEAT filing fee; only professional fees if you hire help.
Timing: AEAT has up to 6 months to decide per procedure; silence can be appealed.
Bottom line: you still face 24%, but now on net income after expenses—and you can recover what you overpaid within the 4-year window.
Hi I have pdf copies of modelo 210s which were submitted by a tax advisor. Can I add expenses manually on the form and submit with supporting documentation
Thanks
Nigel
Hi Nigel,
Thanks for your message.
In short, no — you can’t simply add expenses manually on previously submitted Modelo 210s and re-submit them with supporting documents to “update” what was filed.
If the Modelo 210 was filed and paid without deducting expenses (or with an error in the calculation), the correct route is to file a reclamación de ingresos indebidos (refund claim for undue payment) and request the difference back, attaching the supporting documentation.
Maria De Castro
I have now sold my property in the Canary Isles. I have instead bought 4 weeks in a timeshare resort. But as I own more than 2 weeks timeshare if I want to rent out any one week through the management company they charge me tax at 24%.
Can I claim back any of the expenses such as water and electricity now. They also do not give me proof that the tax has been payed, for example a tax paid certificate. Only an invoice stating tax deductions. Many thanks.
Timeshare weekly rentals: 24% withholding — ultra-short
Tax rate:
Non-EU/EEA: IRNR 24% on gross (no expenses).
EU/EEA residents: 19% and you can deduct expenses (utilities, HOA, management, depreciation) pro-rated to rented days.
Proof of tax paid:
Ask the resort/manager for a withholding certificate — an invoice showing “tax deducted” is not enough.
Regularise via Form 210:
EU/EEA: file Modelo 210 (usually quarterly) to apply expenses and recover over-withholding.
Non-EU/EEA: file only to correct wrong/insufficient withholding.
General info, not tax advice. Bring your contract, residency status, and withholdings for a quick review.
24%: That’s Spanish non-resident rental tax (IRNR). The resort is acting as withholding agent.
Deductions: From 2025 you can deduct necessary expenses (water, electricity, cleaning, management fees, insurance, HOA/community fees, proportional IBI) and be taxed on net rent.
Proof of payment: Ask the resort for a “withholding and payment certificate (Models 216/296)”. An invoice showing “tax withheld” isn’t enough.
How to recover: File Form 210 (quarterly, or amend past periods within 4 years) using that certificate + your invoices to offset or claim a refund.
If helpful, I can share a mini checklist on prorating expenses per rented week.
Would this ruling apply for people that are under the Beckham Law “Regiment Especial Impatriados”?
To my understanding they are trated as Non EU Residents for tax purposes.
I’d appreciate the interpretation on this point.
Hi Toni! Apologies for the late response: Just wrote a post on that, after doing my research 😉
https://www.costaluzlawyers.com/can-beckham-law-taxpayers-deduct-rental-expenses-in-spain-a-2025-turning-point/
Hola Maria.
Soy español residiendo en USA desde hace 4 años.
Me gustaria poder reclamar el dinero abonado en estos pasados ejercicios dada la nueva situación.
Podría concertar una llamada o video llamada para saber mas y si ofrecen el servicio?
Gracias
Gracias por tu mensaje. Estaré encantada de explicarte el procedimiento para reclamar los gastos de alquiler y valorar tu caso concreto.
Te escribo por correo electrónico para coordinar una llamada o videollamada en el momento que te resulte más cómodo y así comentarte los pasos a seguir.
HI Maria, The Modulo 210 still prevent from inputing expenses if you are non-Eu national. What shoudl I do? put the net amount on the gross filed or wait hoping the modulo 210 will be adjusted? Thanks
You should file the Modelo 210 declaring the full gross income as the system requires, and then we can claim back the overpaid tax afterwards based on the recent court ruling.
How much do you charge to help claim back the overpaid tax for the last 4 years?
Our fee for this service is €140 + VAT per tax year in which there are rental incomes to be reclaimed.
So, if we need to claim back overpaid tax for the last 4 years and there are rentals in each of those years, the total professional fee would be €560 + VAT.