Deductible Rental Expenses in Spain for Non-Residents: Full 2025 Guide

December 15, 2025

If you’re an EU or EEA resident who rents out a property in Spain, you benefit from one important tax advantage when it comes to filing your non-resident Rental Income Tax return: you can deduct certain rental expenses from your taxable income. This means you’re taxed not on the full rental amount, but only on the income you actually earned after necessary costs.

However, in July 2025 the National Court issued a ruling that could open the door to an important change: non residents of Spain who reside outside of the EU/EEA might finally be able to deduct rental related expenses too. IberianTax now offers Rental Expenses Reclaim services for 2022 onward. If you’d like to start your submission, simply email us at support@iberiantax.com or get in touch through here.

The rules can feel technical, the deductions are often misunderstood, and the process can be time-consuming if you’re trying to work everything out alone. That’s exactly why so many non-resident owners choose IberianTax. Our platform handles the calculations for you, applies the correct proportional rules automatically, and makes sure your filing is accurate from start to finish - with no paperwork, no guesswork, and no need to navigate Spanish tax forms yourself.

And with the annual filing deadline approaching, now is the ideal time to understand what you can deduct, what you can’t, and how to avoid the most common mistakes.

This guide breaks it all down clearly, in simple terms, so you can confidently prepare your Rental Income Tax return with ease this year.

What Are Deductible Expenses for EU/EEA Owners?

Under Spanish tax rules, EU/EEA non-resident landlords can deduct expenses that are necessary for obtaining rental income. These costs must be directly linked to the rental activity and must correspond to the period in which the property was rented.

In practice, this means you can deduct:

1. Utilities (electricity, water, gas, internet)

If you cover utility costs while guests stay in your property, these are deductible for the rented days.

2. Community fees

Regular community charges for building maintenance can be deducted proportionally.

3. IBI (Property Tax)

Spain’s local property tax is partly deductible based on the days the property was rented.

4. Home insurance premiums

Premiums covering fire, damage, theft, or liability can be included.

5. Cleaning, laundry, and changeover services

Anything needed to prepare or maintain the property between guests.

6. Repairs and basic maintenance

This includes repairs (e.g., fixing a leak, replacing a broken appliance), but not improvements or upgrades. The purchase of furniture can only be deducted via depreciation at the rate of 10% per year.

7. Property management and agency fees

Commission costs from agencies, Airbnb management services, or marketing platforms.

8. Mortgage interest

Only the interest portion of a mortgage payment is eligible to be deducted.

9. Legal and accounting fees

Fees paid to legal and accounting professionals to assist with the rental of the property.

10. Depreciation

A small percentage of the property’s value can be depreciated each year. The depreciation cost is calculated at 3% of the greater purchase price, or the cadastral value of the property, excluding the plot value.

You can only deduct expenses in proportion to the number of rented days, not the full year, unless your property was rented for the full 365 days.

What Expenses Cannot Be Deducted?

Not every cost associated with owning a property qualifies. The Spanish tax authorities distinguish clearly between expenses that relate to rental activity and those that are private or long-term investments.

You cannot deduct:

Personal-use costs
Improvement works (e.g., full kitchen renovation)
Furniture upgrades that add long-term value
Travel costs to Spain
Fines or penalties
Security deposits returned to guests
Any costs without invoices

If the expense does not relate directly to earning rental income, it cannot be deducted.

How Deductions Are Calculated

Most expenses must be claimed in proportion to how many days the property was actually rented. So, if your property was let for 120 days in a given year, you can only apply 120/365 of yearly costs such as IBI, community fees, utilities or depreciation.

IberianTax applies these rules automatically when you file, so you don’t need to calculate anything manually.

What Documentation Should You Keep?

To claim these expenses, you must keep:

Invoices (not receipts or card slips)
Proof of payment
Copies of community fee statements
Rental calendar showing the exact dates rented
Contracts, agreements, or agency statements
If the property is co-owned, you will need the ownership percentages for each owner, as expenses must also be split accordingly.

Frequently Asked Questions About Deductible Expenses

What expenses can non-residents deduct on rental income in Spain?

EU/EEA non-residents can deduct expenses directly associated with generating rental income, including utilities, cleaning, community fees, IBI, insurance, repairs, management fees, mortgage interest and more. It’s important to note that non-EU owners cannot deduct expenses, however, a 2025 National Court decision opens the possibility for non-EU/EEA residents to claim retroactive refunds for open years, usually from 2022 onwards, subject to the four-year statute of limitations. To ensure you do not lose this opportunity if the Supreme Court upholds the ruling, we recommend filing a precautionary rectification request. This preserves your right to claim in the future. Without it, claims for older tax years could be permanently lost.

IberianTax can assist you every step of the way - just get in touch to start the process.

Can I deduct Airbnb or Booking.com fees?

Yes. Platform commissions and management service fees are considered necessary for generating rental income and are therefore deductible for EU/EEA residents.

Can renovations be deducted?

No. Renovations, upgrades and improvements are treated as investments and are not deductible. Only repairs that maintain the property’s condition qualify.

What if my property was only rented for part of the year?

You can still deduct expenses, but only proportionally based on the number of days rented, unless the expense relates exclusively to a rental booking.

What happens if I don’t have the receipts for my expenses?

The tax authorities can reject those expenses, recalculate your tax and apply surcharges. Proper documentation is mandatory in order to claim expenses.

Why can’t non-EU owners deduct expenses?

Under current Spanish tax rules, non-EU residents cannot deduct any expenses when declaring rental income. Only EU and EEA residents are allowed to deduct costs directly linked to generating that income. This distinction is still in force today.

Although a 2025 court ruling suggested that non-EU owners should be allowed deductions, the Spanish tax authorities have not yet updated their regulations, meaning the rule has not changed in practice. Until the Spanish authorities officially implement the new criteria, non-EU owners must continue filing as normal. However, non EU/EEA residents can now file for a retroactive refund claim ahead of this change.

Claim your Rental Expenses with IberianTax

With IberianTax, non-EU/EAA residents can now file for a Rental Expenses Reclaim for the years 2022 onwards. To begin the process, simply contact us at support@iberiantax.com or reach out through our contact page.

IberianTax takes the complexity out of the process. You can record your expenses throughout the year via our platform, and when it’s time to file, we automatically apply the correct calculations and offset them against your tax due. No spreadsheets, no guesswork and no navigating Spanish paperwork on your own.

Our service is available in English, German, French and Spanish, with a dedicated support team ready to help whenever you need us. It couldn’t be easier!