Non-Residents Income Tax: Non-deductibility of expenses in property leases by residents from outside the European Union

The Spanish Central Economic-Administrative Court (TEAC), in its resolution dated 20 March 2024, confirms the non-deductibility of expenses in property leases by taxpayers residing in non-EU countries. This decision considers that the fact that the special rule on the deductibility of expenses and the reduced tax rate of 19% only apply to residents of the EU and the European Economic Area do not imply an incompatibility of the Spanish legislation with European Union Law nor a possible violation of constitutional principles.

Access to the full resolution HERE