If you live outside the European Union, have a rented flat in Spain and pay IRNR tax, this news is of great interest to you. The National High Court has recognised that non-EU non-residents may also deduct the expenses necessary to obtain their rental income in Spain. The change is effective under the 28 July 2025 ruling, which applies the principle of free movement of capital under Article 63 of the TFEU and eliminates the unequal treatment that has been affecting thousands of taxpayers.
What has been there so far, and why is it changing?
To date, Article 24.6 of the IRNR Law (RDL 5/2004) only allowed EU/EEA residents to deduct expenses, excluding those residing in third countries. In practice, an owner residing in the US or the UK was taxed on gross income without being able to deduct expenses such as repairs, community fees or insurance. The National High Court corrects this inequality and extends the right to all non-residents, based on Article 63 TFEU and the doctrine of the CJEU.
The legal key, in simple terms
The ruling considers that buying and renting property is a movement of capital and that those investing from outside the EU cannot be penalised with worse tax treatment than EU residents. Consequently, the deductibility of “expenses necessary to obtain income”—typical of a rental—extends to non-EU residents in IRNR. Various media outlets and law firms have reported on the ruling, highlighting its practical impact.
What expenses are involved?
The rule is common sense: necessary expenses directly related to the rental. In practice, we are talking about—among other things—property depreciation, utilities, community fees, repairs and maintenance, and insurance. The critical message is not the exhaustive list, but the criterion: justified expenses related to rental income in Spain.
Can I claim a refund from previous years?
Yes, if they have not yet expired, it is possible to rectify self-assessments (Form 210) and request refunds for undue payments. Sector coverage and technical analysis focus precisely on reviewing the most recent financial years, without limitation, and proposing refunds where appropriate. For the actual operation of Form 210, remember that the official instructions are available on the AEAT website.
Is everything final, or could it change?
Critical: although the ruling is highly significant, several media outlets report that it could be appealed before the Supreme Court. In other words, the criterion is already gaining momentum, but it is advisable to proceed with caution and document each step thoroughly, anticipating possible legal proceedings.
How can Certus Legal Firm assist you?
In scenarios such as this, the difference between “being right” and “getting a refund” lies in the technical details. Our approach:
- Precise diagnosis, case by case. We review your rentals in Spain, your expenses and your IRNR returns (not expired). We identify recoverable amounts and actual risks.
- Well-prepared rectification (Form 210). We calculate the new result by correctly applying the deductible expenses and prepare the entire test, including invoices, supporting documents, contracts, and payment traceability.
- Documented refund request. We defend your position with references to the National High Court ruling and applicable regulations, in order to expedite and secure the refund.
- Strategy if there are appeals. If the matter goes to the Supreme Court, we will activate a line of defence based on the TFEU, the case law of the CJEU and double taxation agreements, with a focus on non-discrimination.
- Plan for the future. We provide an operational checklist for future tax years, outlining how to document, what to retain, and how to file your tax return to optimise your IRNR without any surprises. (Operational reference for Form 210 included).
If you want to rent in Spain from outside the EU, it's time to make a move.
The National High Court levels the playing field: non-EU non-residents can deduct expenses in their IRNR tax returns for rentals in Spain. It is time to review non-expired exercises, rectify any issues where appropriate, and claim refunds with a well-structured file. And, for whatever comes next, it is best to have a solid, preventive legal strategy in place.
