I live in the UK or Switzerland: can I deduct expenses from my Spanish rental income?

A gross tax for non-EU residents

Spanish non-resident tax treats landlords differently depending on where they are tax resident, not on their passport. EU and EEA residents are taxed on net income at 19 %. Everyone else is taxed on every euro of rent received, at 24 %, with no allowance for IBI, community fees, insurance, cleaning, commissions or interest.

That includes residents of:

• the United Kingdom, since Brexit took effect;
• Switzerland, which is neither in the EU nor in the EEA;
• the United States, Canada, Australia, Russia, Ukraine, Morocco and other third countries.

A British national who is tax resident in Portugal or France is treated as an EU resident. A German national who lives in Zurich pays 24 %.

What the gap looks like

Imagine a villa that earns 15,000 € a year in holiday lets, with 5,000 € of genuine costs.

Owner's residence	Taxable amount	Rate	Spanish tax
Netherlands (EU)	10,000 €	19 %	1,900 €
Norway (EEA)	10,000 €	19 %	1,900 €
United Kingdom	15,000 €	24 %	3,600 €
Switzerland	15,000 €	24 %	3,600 €

You can compare your own figures with the rental simulator.

Relief at home, not in Spain

The costs you cannot deduct in Spain are not necessarily wasted. Your home country normally taxes the same rent under its own rules, often with its own expense deductions, and gives relief for the Spanish tax under the double tax treaty. In the UK, for instance, the let goes on the foreign property pages of Self Assessment, with a credit for Spanish tax that cannot exceed the UK tax on that income. Our page on being taxed twice explains why part of the Spanish tax may still remain a cost.

Points to watch

• The rental return does not replace the imputed income for unlet days, which is also at 24 % for you.
• Keep records of your costs anyway: you will need them for your UK or Swiss return.
• If you move to an EU country, the 19 % regime and deductions apply from the year you become resident there; a certificate of tax residence supports the change.