English-language tax analysis in Spain of DGT binding rulings 2023-2026 on Deductible Expenses for EU/EEA Resident Landlords. Each cited ruling links to the original Spanish text on the DGT consultation database. Article 24.6 TRLIRNR equal-treatment rule allows EU/EEA non-resident landlords to deduct expenses against Spanish rental income on the same basis as Spanish residents.
EU/EEA non-resident landlords have been entitled to deduct expenses since the equal-treatment rule entered force. Many still file on a gross basis — and many of those filings would attract substantial refunds if redone.
Topics » Non-Resident Income Tax in Spain (IRNR / Form 210) » Deductible Expenses for EU/EEA Resident Landlords
Following CJEU case-law (notably C-388/19 and earlier C-440/08), Spain extended the right to deduct expenses to non-residents who are tax-resident in another EU/EEA State. Article 24.6 of the IRNR Law (Real Decreto Legislativo 5/2004) implements the rule: EU/EEA residents can deduct expenses linked to their Spanish-source income, ending the historical disadvantage where they were taxed gross while Spanish residents were taxed net.
The 67 DGT rulings 2023-2026 of this subtopic resolve the practical questions: which expenses are deductible, what evidence is required, how the rule applies to rental income, employment income, and capital gains, and whether the rule extends to third-country residents (generally no).
Before turning to doctrine and worked examples, fix the technical terms that recur throughout the topic. Each has a precise meaning in Spanish tax law and EU jurisprudence; mastering the differences between them is the first line of defence vis-à-vis the AEAT:
EU/EEA residents only
Article 24.6 IRNR Law applies to residents of EU/EEA States. Third-country residents (US, UK post-Brexit) typically not eligible.
Linked to Spanish income
The expense must be directly linked to the production of the Spanish-source income.
Documentary evidence
Standard Spanish documentation rules apply: invoices, contracts, payment proofs.
Form 210 mechanics
The deduction is taken on Form 210 (quarterly or annual).
Theory makes more sense alongside real-world fact patterns. The cases below — built from DGT doctrine — show where the system grants relief and where it denies it:
📌 Case 1: German resident with rental property in Marbella
Deductible: agency commissions, repairs, insurance, IBI, depreciation, mortgage interest. Net rental income at 19% rate (EU/EEA rate).
📌 Case 2: French resident selling Spanish second home
Capital gain: deductible from acquisition cost include notary, registry, ITP, agency fees. Result subject to 19% (EU/EEA).
📌 Case 3: US resident with rental property in Madrid (post-Brexit comparator)
❌ Not eligible for the EU/EEA deduction regime. Taxed at 24% gross — significant disadvantage.
A visual summary of the doctrine. This table does not replace case-by-case analysis, but it allows the reader to identify quickly the general rule applicable to each situation:
| Situation | Rule | Notes |
|---|---|---|
| EU/EEA tax resident with Spanish rental | ✅ Deductible expenses + 19% rate | Art. 24.6 IRNR |
| UK tax resident post-Brexit | ❌ Generally not eligible | Brexit removes EU access |
| US/Canada/Mexico/Brazil resident | ❌ Not eligible (third country) | Taxed gross at 24% |
The cards below summarise representative DGT binding rulings on this topic in English from a practical tax perspective in Spain. Each card links to the original Spanish text of the consulta on the DGT consultation database.
A Spanish national writes to the DGT as it affects properties.
→ View original (Spanish) on the DGT consultation database
📖 DGT doctrine in plain English
DGT applies Article 24.6 TRLIRNR as an equal-treatment rule: an EU/EEA resident landlord computes IRNR on the net rental result (gross rent minus deductible expenses) at the 19% rate, mirroring the Spanish-resident IRPF computation. Deductible items include community fees, IBI, repairs and maintenance, depreciation at 3%, mortgage interest and insurance. Expenses must be apportioned to days actually rented; the 60% net-rent reduction for habitual-residence rentals (Article 23.2 LIRPF) does not extend to non-residents.
The taxpayer, with a connection to the United States, asks the DGT on the treatment of permanent establishment.
→ View original (Spanish) on the DGT consultation database
📖 DGT doctrine in plain English
DGT applies Article 24.6 TRLIRNR as an equal-treatment rule: an EU/EEA resident landlord computes IRNR on the net rental result (gross rent minus deductible expenses) at the 19% rate, mirroring the Spanish-resident IRPF computation. Deductible items include community fees, IBI, repairs and maintenance, depreciation at 3%, mortgage interest and insurance. Expenses must be apportioned to days actually rented; the 60% net-rent reduction for habitual-residence rentals (Article 23.2 LIRPF) does not extend to non-residents.
An individual of Spanish nationality consults the DGT specifically regarding shareholdings.
→ View original (Spanish) on the DGT consultation database
📖 DGT doctrine in plain English
DGT applies Article 24.6 TRLIRNR as an equal-treatment rule: an EU/EEA resident landlord computes IRNR on the net rental result (gross rent minus deductible expenses) at the 19% rate, mirroring the Spanish-resident IRPF computation. Deductible items include community fees, IBI, repairs and maintenance, depreciation at 3%, mortgage interest and insurance. Expenses must be apportioned to days actually rented; the 60% net-rent reduction for habitual-residence rentals (Article 23.2 LIRPF) does not extend to non-residents.
A Spanish national writes to the DGT on the proper handling of inheritance.
→ View original (Spanish) on the DGT consultation database
📖 DGT doctrine in plain English
DGT applies Article 24.6 TRLIRNR as an equal-treatment rule: an EU/EEA resident landlord computes IRNR on the net rental result (gross rent minus deductible expenses) at the 19% rate, mirroring the Spanish-resident IRPF computation. Deductible items include community fees, IBI, repairs and maintenance, depreciation at 3%, mortgage interest and insurance. Expenses must be apportioned to days actually rented; the 60% net-rent reduction for habitual-residence rentals (Article 23.2 LIRPF) does not extend to non-residents.
An individual consults the DGT on the application of donation.
→ View original (Spanish) on the DGT consultation database
📖 DGT doctrine in plain English
DGT applies Article 24.6 TRLIRNR as an equal-treatment rule: an EU/EEA resident landlord computes IRNR on the net rental result (gross rent minus deductible expenses) at the 19% rate, mirroring the Spanish-resident IRPF computation. Deductible items include community fees, IBI, repairs and maintenance, depreciation at 3%, mortgage interest and insurance. Expenses must be apportioned to days actually rented; the 60% net-rent reduction for habitual-residence rentals (Article 23.2 LIRPF) does not extend to non-residents.
The consultation brings to the DGT in respect of shareholdings.
→ View original (Spanish) on the DGT consultation database
📖 DGT doctrine in plain English
DGT applies Article 24.6 TRLIRNR as an equal-treatment rule: an EU/EEA resident landlord computes IRNR on the net rental result (gross rent minus deductible expenses) at the 19% rate, mirroring the Spanish-resident IRPF computation. Deductible items include community fees, IBI, repairs and maintenance, depreciation at 3%, mortgage interest and insurance. Expenses must be apportioned to days actually rented; the 60% net-rent reduction for habitual-residence rentals (Article 23.2 LIRPF) does not extend to non-residents.
An individual of Spanish nationality consults the DGT concerning properties.
→ View original (Spanish) on the DGT consultation database
📖 DGT doctrine in plain English
DGT applies Article 24.6 TRLIRNR as an equal-treatment rule: an EU/EEA resident landlord computes IRNR on the net rental result (gross rent minus deductible expenses) at the 19% rate, mirroring the Spanish-resident IRPF computation. Deductible items include community fees, IBI, repairs and maintenance, depreciation at 3%, mortgage interest and insurance. Expenses must be apportioned to days actually rented; the 60% net-rent reduction for habitual-residence rentals (Article 23.2 LIRPF) does not extend to non-residents.
An individual consults the DGT on the proper handling of inheritance specifically regarding shareholdings.
→ View original (Spanish) on the DGT consultation database
📖 DGT doctrine in plain English
DGT applies Article 24.6 TRLIRNR as an equal-treatment rule: an EU/EEA resident landlord computes IRNR on the net rental result (gross rent minus deductible expenses) at the 19% rate, mirroring the Spanish-resident IRPF computation. Deductible items include community fees, IBI, repairs and maintenance, depreciation at 3%, mortgage interest and insurance. Expenses must be apportioned to days actually rented; the 60% net-rent reduction for habitual-residence rentals (Article 23.2 LIRPF) does not extend to non-residents.
The topic comprises a total of 67 DGT binding rulings 2023-2026. The above are the most representative; the rest follows the same line and can be retrieved from the official DGT search at Petete.
The errors below are those we most often see in practice. Most are avoided with up-front planning and contemporaneous documentation:
❌ Filing on a gross basis when EU/EEA deduction was available
Consequence: Overpaid tax; rectification needed
How to avoid it: Identify residence in EU/EEA and apply Art. 24.6
❌ Failing to keep contemporaneous documentation of expenses
Consequence: Deduction denied on audit
How to avoid it: Spanish-format invoices and payment proofs
EU/EEA residents enjoy net taxation on Spanish-source income; non-EU residents are taxed gross at higher rates. This is a significant structural difference that often justifies tax structuring decisions when entering or exiting Spanish investments.
From the practice
Notes from real cases · Jacob Salama, ICAMálaga 11.294
The rule allows deduction of community fees, IBI, repair costs, depreciation at 3%, mortgage interest, insurance and management fees on the same basis as a Spanish resident. The 60% net-rent reduction for habitual-residence rentals does not extend, but the basic expense deduction does.
Common pitfall: Many advisers continue to file Modelo 210 on a gross basis for EU residents because that is how the system worked pre-equal-treatment. Refund claims for the past four years are still open under the standard limitation period.
If you have a UK (post-Brexit) or other non-EU client landlord, check whether the equal-treatment rule extends — Ley 11/2021 broadened access materially, and many non-EU landlords are also entitled.
⚠️ Tax disclaimer: This content reflects Spanish DGT doctrine and Spanish/EU jurisprudence in force at the date of publication. DGT binding rulings only bind the Spanish tax authority on facts substantially identical to those of the consultation (Article 89 LGT); their application by analogy requires care. Treaty positions, the MLI, EU case-law and OECD MC Commentary may have evolved. Before filing any return, refund claim, appeal or position paper with the AEAT, please obtain individualised advice from a Spanish-licensed tax lawyer or registered tax adviser. SALAMA LEGAL SLP does not assume responsibility for decisions taken solely on the basis of this content.
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