Non-EU residents may deduct expenses in the IRNR (Non-Resident Income Tax) for renting in Spain.

In a recent ruling (SAN 28-07-2025, nº. rec.636/2021), the National Court upheld the appeal of a taxpayer residing in the United States, recognising her right to deduct the expenses necessary to obtain income from the rental of a property in Barcelona, within the framework of the Non-Resident Income Tax (IRNR).

Until now, Spanish regulations only allowed this deduction for residents of the European Union (EU) or the European Economic Area (EEA), provided that there was an effective exchange of tax information. However, the National Court considers that this limitation violates the principle of free movement of capital set out in Article 63 of the Treaty on the Functioning of the European Union (TFEU). The ruling is based on solid case law from the Court of Justice of the European Union (CJEU), which has extended the prohibition of discrimination to residents of third countries, such as the United States.

This ruling recognises the right of residents of non-EU countries to deduct expenses related to the rental of property in Spain on an equal footing with residents of the EU or the European Economic Area and opens the door for non-resident taxpayers in third countries to request the rectification of IRNR self-assessments and the refund of undue payments, provided they meet the legal requirements.