Big Win for Non-EU Non-Residents with Property in Spain
On 28 July 2025, Spain’s National Court delivered a landmark ruling that could change the way thousands of international property owners are taxed. The Court declared it discriminatory and against EU law to deny non-EU non-residents the right to deduct rental expenses on their Spanish properties.
What this means for non-EU property owners
If you’re a U.S. citizen or from another non-EU country and rent out your home in Spain, you’ve always faced a harsher tax regime than EU/EEA owners. Until now:
✅ You can now deduct rental expenses such as repairs, mortgage interest, insurance, property management fees, and maintenance costs.
✅ You’ll be taxed only on net rental income, instead of gross income as before.
✅ You may even claim refunds for overpaid taxes going back up to four years.
This ruling levels the playing field, potentially saving non-EU owners thousands of euros.
The old system: unfair treatment
For years, Spain applied different rules depending on your residency:
- EU/EEA non-residents → deductions allowed + 19% tax rate
- Non-EU non-residents (U.S., UK, Latin America, Asia, etc.) → no deductions + 24% tax on gross rental income
That meant two property owners with the same rental property could face very different tax bills, simply because of where they lived.
What’s next?
While this ruling is a major step forward, Spain’s Supreme Court will also be weighing in on further issues that could benefit non-EU owners, such as:
- Whether they can also apply the reduced 19% tax rate (instead of 24%)
- Whether they can benefit from the 50–60% rental reduction currently available to Spanish residents
If confirmed, the financial impact could be even more significant.
Why it matters
For international homeowners in Spain, this ruling is more than just a legal technicality. It’s about fair treatment and financial relief. Lower tax bills, fairer rules, and the possibility of refunds mean more freedom to invest in property, maintain homes, and enjoy the benefits of owning in Spain.
If you’re a U.S. citizen or any other non-EU property owner renting out a home in Spain, now is the time to review your tax situation. This decision could mean serious savings and money back in your pocket. With fairer tax rules now in place for non-EU owners, there’s never been a better time to invest. At Roccabox, we help clients find the perfect home while guiding them through every step of the buying process.
Explore our latest listings here: Marbella properties for rent