The Central Tax Court (TEAC), in its decision dated 20 March 2024, has reiterated, in line with previous resolutions, that the income obtained by a resident in Germany from the lease of a property located in the Spanish territory is subject to taxation in Spain, without entitled the non-resident taxpayer to benefit from the reductions provided for in the Personal Income Tax Law (specifically, the 60% reduction for being a residential lease).
We will be attentive to confirm if this criterion, which is certainly questionable, is modified if this case reaches the Courts of Justice.
Access to the full resolution HERE
