Non-EU Owners Can Now Deduct Rental Expenses in Spain

Non-EU Owners Can Now Deduct Rental Expenses in Spain

Big news for non-EU property owners renting in Spain: a Spanish court has ruled it is unlawful to stop you deducting expenses such as repairs, community fees, insurance and mortgage interest from your rental income.

Until now, EU/EEA residents paid 19% on net income, while non-EU owners (including Brits since Brexit) paid 24% on gross income, with no deductions.

This ruling changes that and also opens the door to claim back overpaid taxes from the last 4 years.

The 24% vs 19% tax rate issue is still under review, but this decision is already a major step towards fairness.

What do you think? Will you be claiming a refund? Share your thoughts below.

We are UK residents. We bought our house in Malaga Province in 2015 and each year my wife and I each pay a nominal annual non-resident tax based upon the cadastral. I have just paid 

The property is not directly relevant to your article because it is a holiday home used only by family and close friends, but I had previously been advised that Spanish properties in foreign ownership are liable to pay this federal tax because the system assumes that there will always be an element of rental income. Is this still the case?

Best regards

Steve