Important: tax residence, not nationality, determines the regime.
The ordinary filing rule
Article 24.6 of the Non-Resident Income Tax Act allows directly related rental expenses for tax residents in the EU and in the EEA states covered by mutual assistance: Iceland, Norway and Liechtenstein. The Tax Agency applies 24% to gross rent for other residents, including UK, US, Swiss and Canadian residents.
What the National Court actually decided
Judgment SAN 3630/2025, 28 July (appeal 636/2021; ECLI:ES:AN:2025:3630) allowed a US resident to deduct expenses. The main basis was Article 63 TFEU on free movement of capital. The Spain–US treaty and effective information exchange supported the analysis.
SAN 1521/2026, 27 March (appeal 637/2021; ECLI:ES:AN:2026:1521) addresses the same legal issue and expressly applies the reasoning of the earlier judgment. The published texts do not establish that they involve the same taxpayer or the same underlying litigation. They are two rulings on the same legal question, not settled case law.
As at 9 August 2026, no published Supreme Court admission order or final judgment has been identified for these appeals. The statute and the Tax Agency guidance remain unchanged. A claim may succeed, but the law is not settled.
Country-by-country strength
| Residence | Practical position |
|---|---|
| EU + Iceland, Norway, Liechtenstein | Expenses permitted by statute, subject to proof. |
| United States | Strongest fact match to the decided case; treaty and information exchange add support. |
| UK, Switzerland, Canada and other treaty/assistance states | Potential argument, but not decided by these US judgments. Review the particular treaty and evidence. |
| No effective assistance | Generally more difficult; the same outcome should not be promised. |
Lower-risk route: file, pay, then amend
- File Form 210 under the Tax Agency's current rule: 24% of gross rent.
- Request rectification and repayment, identifying and proving every expense.
- If refused, appeal within the deadline in the decision. A request does not remove the need to monitor subsequent appeal periods.
Deducting expenses directly creates an immediate dispute, with a potential adjustment, interest and a possible penalty discussion. A penalty is not automatic, but the exposure must be considered.
Limitation is not simply “every 1 January”
The general repayment period is four years under Articles 66–68 of the General Tax Act, calculated from the relevant filing/payment deadline. Old quarterly returns may expire in January, April, July or October; the new annual rental return is linked to April. Review each return individually.
Evidence checklist
- Annual tax residence certificate.
- Tenancy agreements, bank statements and complete income schedule.
- Invoices and payment proof for local tax, community fees, insurance, repairs, finance, utilities and management.
- Title deed, land/building split and depreciation calculation.
- Let days, owner-use days, ownership percentage, filed returns and payment receipts.
Sources
- Spanish Non-Resident Income Tax Act, Article 24.6.
- Tax Agency: rental income.
- Tax Agency: Brexit consequences.
- SAN 3630/2025 and SAN 1521/2026, identifiers above.
- General Tax Act, Articles 66–68.
Information updated on 9 August 2026. Outcome, duration and costs cannot be guaranteed; viability depends on residence, treaty, evidence, limitation and judicial developments.
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