Non-Resident Income Tax. Rental of real estate located in Spain by a resident in Germany

May 9, 2024 | Tax Flash

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.

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