Historic tax change: Non-EU property owners can claim tax refunds on rentals in Spain
A July 2025 court ruling has opened a unique opportunity to recover overpaid Income Tax for Non-Residents (IRNR).
What has changed?
Until now, property owners residing outside the European Union who rented out properties in Spain paid 24% IRNR on gross income, with no deductions allowed. Meanwhile, residents of EU countries could tax their net profit, deducting expenses such as property tax (IBI), community fees, insurance, repairs, mortgage interest, and depreciation.
The National Court has ended this discrimination. Now, all non-residents—regardless of their country of origin—are entitled to the same deductions.
What does this mean for you?
- Significant savings: This measure could mean hundreds or thousands of euros per year.
- Retroactive refunds: You can claim up to four previous tax years.
- Limited window: Taxes expire after four years. If you don’t act now, you risk losing the right to recover them.
Why is it urgent to act despite uncertainty?
- The tax regulations have not yet been updated, and the tax authority (Hacienda) may appeal this ruling.
- Initially, Hacienda might resist recognizing the right to refunds until this new interpretation is fully established.
However, our clear recommendation is to file your claim now. Even if Hacienda delays acknowledgment, claiming now prevents the expiration of your right to request a refund. You will be positioned to benefit once this new interpretation allowing non-EU residents to tax rental income on equal terms with EU residents is finalized.
Time is against you
- Until December 31, 2024, IRNR was declared quarterly.
- Each quarter you do not claim expires, permanently closing the possibility to recover those amounts.
- Every month that passes may mean money you can never recover, regardless of the final legal outcome.
What do you need to do?
To request a refund, you must:
- Amend previous Model 210 tax declarations
- Gather documentation of income and deductible expenses
- Submit the corresponding refund claim
Thousands of property owners from countries such as the United States, Mexico, Argentina, Canada, and the United Kingdom are already claiming their refunds.
Want to know if you can benefit?
Contact our firm:
- Email: palma@januarconsulting.com
- Contact form from our website
Don’t let your right expire. Act now and secure your position for when this historic change is fully consolidated.
Download our informative summary in PDF format on this interesting topic.
Historic tax change-Non-EU non-resident property owners can now deduct rental expenses in Spain