Can foreigners deduct property expenses in Spain?

Foreigners who own a property in Spain can indeed deduct certain expenses. In order for an expense to be deductible, it must be directly related to the generation of income (in the case of rentals) or meet the requirements for investment in a primary residence.

At Fotocasa, we explain in simple terms which invoices are deductible depending on your residency status and the use of the property, as rules can vary if you are a tax resident in Spain or if you live abroad. We will analyze the list of permitted expenses and the latest legal developments that equalize the rights of all owners.

Do you know if your residency status allows you to deduct mortgage interest or community fee invoices?

Which foreigners have the right to deduct property expenses in Spain?

The possibility of deducting expenses depends directly on tax residency and the tax being paid. Foreign residents (those residing more than 183 days a year in Spain) pay IRPF (Personal Income Tax), while non-residents pay IRNR (Non-Resident Income Tax).

Both profiles are entitled to deductions, but the requirements change: residents usually apply them to their primary residence or rentals, while non-residents focus exclusively on the income generated by the property.

What expenses can foreigners deduct if their property is rented out?

If you are a foreigner and own a property in Spain intended for rental, the law allows you to subtract various expenses from the gross income to pay taxes only on the net profit.

Main expenses that foreigners who have a rented home can deduct

Whether you reside in Spain (IRPF) or live abroad (IRNR), if you have the house rented out, you can deduct the following expenses necessary for the lease:

1. Mortgage interest: Interest on loans for the purchase or improvement of the property.
2. 3% Depreciation: It is possible to deduct 3% of the construction value. To calculate this, the higher of these two values is taken: the acquisition cost or the cadastral value (always subtracting the land value). This expense compensates for the depreciation of the building without the need to present an annual invoice.
3. Repairs and maintenance: Painting and fixing installations (improvements or extensions are not included).
4. Local taxes: Receipts for IBI (Property Tax) and waste collection or sewage fees.
5. Community fees and security: Monthly fees and concierge services.
6. Insurance premiums: Home, civil liability, and non-payment insurance.
7. Utilities: Electricity, water, gas, and internet (provided they are paid by the owner).
8. Platform commissions: Management fees for Airbnb, Booking, or real estate agencies.
9. Mandatory certificates: Cost of the Energy Efficiency Certificate (CEE) and certificate of occupancy.
10. Formalization of contracts: Legal, administrative (gestoría), or notary fees.

Important note: Expenses are only deductible in proportion to the number of days that the property has been effectively rented out during the year. For example, if the property has only been rented for 6 months, you will only be able to deduct half of the fixed expenses (such as IBI or insurance).

The costs to consider when maintaining a home in Spain as a non-resident foreign buyer

Table: Expenses that a foreigner can deduct for renting out their property

Source: Fotocasa

As we can see in the table, foreigners who rent out their homes can deduct various property expenses. The goal is to pay tax only on the net profit, subtracting all invoices linked to the rental activity.

Can I rent out my home in Spain while living abroad?

Can foreigners deduct expenses on a primary residence?

If you are a foreign tax resident in Spain and the house is your primary residence, the deduction options are different:

1. Deduction for purchase (Transitional regime): Only if you bought the property before January 1, 2013, can you deduct 15% of the amounts invested (with a limit of €9,040).
2. Energy efficiency: You can deduct between 20% and 60% if you carry out works that improve insulation or reduce the consumption of non-renewable energy in the home.
3. Regional deductions: Many resident foreigners can deduct part of what they pay in rent depending on their Autonomous Community (especially those under 35 or with low incomes).

Can non-EU foreigners deduct property expenses in Spain?

Until recently, tax discrimination existed: non-EU citizens (such as British, Americans, or Mexicans) could not deduct expenses in the IRNR. However, following the National Court rulings in 2025, this situation has changed.

The courts have determined that denying the deduction of expenses to residents of third countries violates the free movement of capital.

Currently, any foreigner, regardless of whether their country belongs to the EU or not, has the right to deduct the necessary expenses for the maintenance of their rented property in Spain, thus paying tax on the actual net yield.

If you are a foreigner with a property in Spain, the key is the use. If you rent it out, keep all IBI, community, and repair invoices, as they will reduce your tax bill. If it is your primary residence, check the energy efficiency grants in your Autonomous Community.

The unification of criteria for non-EU foreigners in 2026 marks a milestone of fiscal equality that makes real estate investment in Spain much more attractive for citizens from outside the European Union. If you are a non-EU citizen and did not deduct expenses in previous years, consult with an expert about the possibility of claiming undue income based on the new case law.

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