Lower taxes and more benefits: tax changes for non-EU citizens who want to buy property in Spain

If you’re thinking about buying a property in Spain and you’re not a citizen of the European Union, we have great news: the Spanish Supreme Court has changed the rules of the game, and investing in Spain is now more attractive than ever.

What was the situation before?

Until recently, non-EU property owners renting out their homes in Spain had to pay 24% on gross income, without being allowed to deduct any expenses. Meanwhile, EU residents paid 19% and could deduct costs such as repairs, insurance, commissions, and other related expenses.

What has changed?

• Non-EU property owners can now deduct rental expenses.
• The previous system has been deemed discriminatory.
• The principle of free movement of capital within Europe has been upheld.

In short: you pay less, gain equal treatment, and investing in Spain has become more profitable.

And what about the so-called “100% tax”?

 The controversial “State Complementary Tax”, which proposed a 100% surcharge for non-EU buyers, now has very little chance of being enforced after the recent court ruling.

• Punitive taxes based on residency cannot be imposed.
• It would be contrary to both Spanish and European law.
• The likelihood of approval is considered very low.

This brings greater legal certainty and confidence for those looking to buy a home in Spain as a second residence or to invest in short- or long-term rentals. In other words, more legal security and trust for international investors.

New advantages when buying a property in Spain

In summary, buying property in Spain now offers tangible benefits for non-EU citizens:

• Tax deductions on rental income, reducing the overall tax burden.
• Greater equality of treatment with EU property owners.
• Lower risk of future discriminatory taxes.

This new landscape makes Spain an increasingly attractive destination for real estate investment—whether you’re looking for a personal home or aiming to generate income from rentals.

We advise you on legal, tax, and financial matters when buying a property in Spain

Buying a property in Spain now includes major tax opportunities for non-EU citizens. At VINCENT REAL ESTATE, we help you understand and take advantage of these changes:

• Rental expense deductions: learn how to deduct repairs, utilities, insurance, commissions, and other costs allowed under the new regulations.
• Tax benefits for non-EU residents: optimize your taxation and reduce your tax burden thanks to equal treatment with EU property owners.
• Protection against future discriminatory taxes: we guide you on how to safeguard your investment from potential punitive measures.

Our team combines tax, legal, and market expertise to ensure every decision is backed by accurate and up-to-date information. We accompany you throughout the entire process—from property selection to tax planning—ensuring your investment is both profitable and secure. Contact us today and discover how to make the most of the new tax regulations when buying a property in Spain.

info@vincent-realestate.com

Offices: 

• Avda. Federico García Lorca, 37 - Benijófar 03178 (Alicante), Spain (UK Phone: +44 208 0998997 | ES Phone: +34 966 712 440).
• Calle Niágara – Edif. Miraflores III – Local 6-7 – Playa Flamenca 03189 Orihuela Costa (Alicante), Spain (ES Phone: 0034 965 326 606 | UK Phone: +44 (0) 203 0048990).