British landlords in Spain may have overpaid tax since Brexit
Here's how to claim back before it's too late
Thousands of British property owners renting out across Spain may have been overpaying tax since Brexit – not through any error of their own, but due to a rule that a Spanish court has now declared unlawful. The refund window is open and IberianTax, a specialist online platform for Spanish non-resident property tax compliance, is already helping landlords claim back what they are owed before it's too late.
Until now, non-resident landlords based outside the EU, which includes all UK residents since Brexit, were taxed at 24% on their gross rental income from Spanish property, with no right to deduct a single expense. Property repairs, insurance costs, management fees, mortgage interest: none of it counted. European non-resident landlords, by contrast, could deduct these costs and were taxed at the lower rate of 19% on their net income.
Spain’s National Court has ruled that denying non-EU landlords the right to deduct rental expenses may breach EU free movement of capital rules. The practical difference is significant: if you earned €10,000 in rental income with €3,000 in legitimate expenses, as a UK resident landlord in Spain you were taxed on the full €10,000. Under the new ruling, tax should only apply to the remaining €7,000, and for previous years, the difference may be yours to claim back.
The urgency lies in the four-year statute of limitation: Spain limits refund claims to the last four tax years. Prior to 2024, rental income was filed quarterly, meaning every quarter has its own individual expiry date. Take rental income from April to June of 2022, typically declared by 20 July of 2022: that refund window may close as early as 20 July 2026. After that, it is gone.
From 2024 onwards, the rules changed: rental income is now declared once a year, due in the first 20 days of January the following year. That means recent years are likely still claimable. Older periods are a different story: whether they can still be reclaimed depends on exactly when each return was originally filed and paid.
The years most at risk right now are 2022 and 2023. IberianTax recommends filing a preventive refund claim for those years as a priority. For 2024 and 2025, the window is wider, and many landlords may prefer to wait for a final Supreme Court ruling before proceeding. But older years will not wait - and once a period expires, that portion of the refund is gone permanently.
Most landlords affected have never heard of this ruling. Acting now puts you ahead of the majority of people in exactly the same position, and helps preserve your right to claim months, and even years, before they expire.
IberianTax, Spain's leading online solution for non-resident property tax compliance, offers a dedicated Rental Expenses Reclaim service for non-EU landlords, covering tax years from 2022 onwards. The process is handled online, in English, with clear guidance at every step and expert tax support included, at no extra cost.
For your ongoing annual compliance, the platform also helps non-resident property owners file Modelo 210 returns for imputed income, rental income and capital gains starting from just €34.95 per filing (incl. VAT). Registered users also get free access to an integrated rental expenses tracker built directly into their personal dashboard, making it easy to log and organise receipts throughout the year so everything is ready when it's time to file. With over 1,000 reviews across Google and Trustpilot, IberianTax clients consistently praise its simplicity, ease of use, and fast expert support, all at a price that makes it an easy decision.
As a Spain Today Online reader, use the code SPAINTODAY10 at checkout for 10% off your first Modelo 210 filing. Create your free account at iberiantax.com in just a few minutes to get started.
Who may be affected?
Modelo 210 rental income tax returns without being allowed to deduct expenses. It does not apply to periods where the property was only used privately or left empty, as those periods are normally covered by imputed income tax, not rental income tax.
Which years can potentially be claimed?
At this stage, recent rental income tax years may still be within the reclaim window, depending on when each Modelo 210 return was filed and paid. IberianTax currently recommends prioritising preventive claims for 2022 and 2023, where the risk of prescription is more immediate, while waiting for greater clarity from the Supreme Court before focusing on later years.
What expenses may be included?
Deductible expenses may include mortgage interest, IBI bills, community fees, insurance, repairs, maintenance, cleaning, management fees, utilities paid by the landlord and property depreciation, provided they relate to the rented property and can be properly supported.
IberianTax is an official collaborator of the Spanish Tax Agency (Agencia Tributaria) and trusted by over 15,000 property owners across more than 80 countries.
If you own property in Spain but don’t live there, you must pay tax – whether you use it as a holiday home, rent it out or sell it.
IberianTax helps non-resident property owners file their Modelo 210 tax forms quickly and securely. Our easy-to-use online platform simplifies the process of filing the Modelo 210 tax form, ensuring full compliance with Spanish tax laws. With step-by-step support and affordable pricing starting at just €34.95, filing your taxes has never been easier or stress-free.
Join thousands of non-resident homeowners who have chosen IberianTax as their trusted tax partner in Spain. Visit our website and sign up for your free account now.
What is the Modelo 210 tax form?
The Modelo 210 is Spain’s tax form for non-residents who own property in Spain. It is used to declare taxes related to your property.
There are different types, depending on the tax:
- Imputed Income (Modelo 210): Owning a property for personal use (i.e.: holiday home).
- Rental Income (Modelo 210): For income earned from renting out your property.
- Capital Gains (Modelo 210): For tax due when you sell your property.
How to file your non-resident Modelo 210 tax with IberianTax in 3 steps
- Create an Account: Sign up for free to start. You can get a free tax estimate by using our tax calculator and only pay when you submit your Modelo 210.
- Enter Your Details: Complete the simple IberianTax questionnaire with your property and personal information. Step-by-step guidance and examples are included.
- Submit Your Tax: Choose your payment method, and IberianTax will file your Spanish non-resident tax return online for you. Simple!
Why use IberianTax to file your Modelo 210?
- Fast & Easy: File your Modelo 210 online in minutes.
- Simple: Step-by-step questionnaire – no tax knowledge needed.
- Affordable: Services from €34.95 VAT inc., far less than typical €150+VAT.
- Flexible: File anytime, anywhere, with multiple payment options.
- Accurate: Built by tax experts with automatic checks.
- Secure: Data encryption and safe online payments.
- Certified: Approved by the Spanish tax authorities.
- Multilingual: English, French and German support available.
Whether you need to file taxes for personal use, rental income, or capital gains, IberianTax offers a comprehensive, reliable, and cost-effective solution for non-resident property owners in Spain.
Get started now on the IberianTax website and enjoy a 10% discount or, if you have any further questions, the team will be happy to answer them. Just use the contact box above, or fill in the contact form on their website.
Alternatively, you can send an email to contact@iberiantax.com and they will get back to you as soon as possible.
