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UK Homeowners In Spain Could Pay Less Tax On Rental Income

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British homeowners who rent out property in Spain could eventually pay less tax if the country’s Supreme Court rules in favour of allowing non-EU residents to deduct rental expenses. The court has agreed to examine whether landlords living outside the European Union should be taxed on their gross rental income without being able to deduct costs such as repairs, maintenance and insurance. The outcome could have financial implications for UK property owners, although no final ruling has been issued, according to El País.

How much tax do British landlords currently pay in Spain?

Non-residents who rent out property in Spain generally pay Non-Resident Income Tax (IRNR). The standard rate is 24 per cent for people living outside the EU and the relevant European Economic Area countries, compared with 19 per cent for qualifying EU/EEA residents.

Current rules generally allow eligible EU/EEA residents to deduct qualifying expenses directly connected with their rental income. Non-EU residents, including people living in the UK, have generally been unable to deduct these costs when calculating taxable rental income.

The distinction is based on tax residence rather than nationality. A British citizen who lives and pays tax in Spain is not automatically subject to the same rules as someone who lives in Britain and owns a Spanish rental property.

What could the tax saving mean for UK property owners?

Consider a hypothetical UK-resident landlord receiving €12,000 a year in rent from a Spanish property and paying €4,000 in eligible expenses. Under the current general treatment for non-EU residents, the 24 per cent tax rate applied to the full €12,000 would produce a tax bill of €2,880.

If the Supreme Court ultimately confirms that the landlord can deduct all €4,000 in qualifying expenses, taxable income would fall to €8,000. Applying the same 24 per cent rate would produce a bill of €1,920.

That would mean a potential annual saving of €960 in this example. Actual deductions would depend on the expenses involved and the applicable tax rules. The calculation does not represent a saving that landlords can automatically claim today.

Why is Spain’s Supreme Court examining the rules?

The case concerns a property owner living in the United States who rented out a flat in Barcelona. Spain’s tax authorities had refused to allow deductions for rental expenses. The National Court (Audiencia Nacional) subsequently ruled in the owner’s favour, finding that the restriction could conflict with the European Union principle of free movement of capital. Spain’s State Legal Service appealed against that decision.

In July 2026, the Supreme Court agreed to examine the legal question. Judges will consider whether excluding non-EU residents from these deductions is compatible with European law, including whether the restriction can be justified under the rules governing the free movement of capital.

The issue could affect landlords from Britain, the United States and other countries outside the EU, although the final legal position will depend on the court’s decision.

Can British landlords claim back Spanish rental tax?

A previous ruling has already put the issue on the radar of non-EU property owners. Euro Weekly News covered the National Court decision in its August 2025 article, Spain eases tax for non-EU landlords.

However, the Supreme Court’s review means landlords should not assume that the matter is finally settled or that a refund is guaranteed. Anyone who believes they have overpaid should speak to a qualified Spanish tax adviser about their individual circumstances, the relevant ruling and any deadlines for correcting previous returns. Official guidance from Spain’s Tax Agency explains the existing rules for rental income earned by non-residents.

What happens next at Spain’s Supreme Court?

The Supreme Court must now decide whether non-EU residents should be allowed to deduct qualifying expenses from their Spanish rental income under the disputed rules. The case may also raise questions of European Union law.

The case is still pending in the courts. The Supreme Court has agreed to review the issue, but it has not delivered its final judgment. Until the legal position is clarified, British homeowners should not treat the proposed deductions as a confirmed change to Spain’s rental tax rules.

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Málaga Surgeon Calls For E-Scooter Driving Tests As Crashes Leave Riders Needing Surgery

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Helmets are compulsory, but e-scooter riders in Spain still don’t need to pass a test. Credit: Pixel-Shot / Shutterstock

E-scooter riders in Spain now need a helmet, insurance and a spot on the official register, yet nobody checks whether they can actually ride their vehicle properly or handle the traffic on the road. A Málaga surgeon who operates on riders after the worst crashes thinks that gap needs closing.

A surgeon wants riders tested like other road users 

Rafael López Arévalo, head of orthopaedic surgery and traumatology at Hospital Quirónsalud Málaga, believes e-scooter riders should have to pass a test comparable to the ones other road users face before they head out among cars, buses and vans.

His case is built on what he’s seeing in theatre. He estimates that 30 to 40 per cent of the e-scooter accident patients his team treats end up needing surgery, with some of the more complex fractures potentially affecting their ability to work further down the line.

That’s an estimate for the patients who reach his team, though, and not a figure for every scooter crash in Málaga. Earlier University of Málaga research found bruising was by far the most common injury among scooter patients seen in emergency departments. 

Riders are sharing the road with cars

Since January 2021, e-scooters have been banned from pavements across Spain and capped at 25km/h, which moved riders off the pavement and onto the road alongside motor traffic. López Arévalo’s argument is about whether riders really understand what that involves. Plenty of people hop on with the attitude of ‘it’s only a scooter, how hard can it be?’, and a test is designed to challenge exactly that assumption. 

For parents whose teenagers ride to school, commuters weaving through the city and residents stepping off the kerb as a scooter comes the other way, it’s a question that comes up every single day.

What the university research did and didn’t find 

The University of Málaga (UMA) study behind EWN’s August coverage analysed more than 400 patients treated in emergency departments between 2018 and 2022, and it also looked at what changed once scooters moved onto the road.

Pedestrians being knocked down fell from 10.9 per cent of cases to 5.2 per cent, while collisions with motor vehicles rose from 8.8 per cent to 18 per cent. However, the researchers said in their January release that they hadn’t seen any increase in the overall severity of injuries, despite those extra collisions.

So the research doesn’t show that moving riders onto the road made injuries worse. The surgeon’s estimate is a separate observation, based on the patients his own team is treating now.

Helmets are compulsory, but there’s still no test 

Since Thursday October 1, riders across Spain have had to wear a certified helmet, with fines of around €200 for those who don’t. The scooter itself must also be registered with the DGT (Spain’s traffic authority) and insured. However, there’s still no test or licence needed to ride one. 

Until that changes, riders’ best protection is the helmet and the 25km/h limit they’re already bound by. UMA’s researchers go a step further and recommend full-face helmets, as so many of the fractures they recorded were to the face and jaw.

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La Cala Lions Go Showbiz For 2027 Charity Calendar

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La Cala Lions 2027 calendar now on sale. Credit: La Cala Lions

La Cala Lions have swapped their familiar blue shirts for show-stopping costumes in a hilarious new 2027 calendar that recreates some of the best-loved musicals of stage and screen.

Titled ‘La Cala’nder Girls!, the calendar features members of the Mijas-area charity club posing as characters from famous productions including Sister Act, The Sound of Music and Mamma Mia!. The big question is whether you can work out which Lion is which!

Known for their tireless fundraising for local good causes and for bringing British expats and Spanish residents together, the Lions have come up with a fun way to raise money while giving supporters something to smile about throughout the coming year.

A Christmas present with a difference

With Christmas approaching, the calendar could be the perfect stocking filler or present for anyone who knows the Lions and their work in the local community.

Production of the calendar has been supported by sponsors Bobby Jones and Spikes, Ibex Insurance, Bar Tuta, Legends Bar and Bridges Bar, whose backing is celebrated through this light-hearted project.

La Cala Lions president for 2026/27, Sandie Tavendale, paid tribute to the people who helped make the calendar possible, particularly John Sharples and Lynne Armitage, whose time and commitment were essential to the project.

She also thanked the club’s volunteers, whose work keeps its charity shops and fundraising activities running successfully, as well as the sponsors who continue to support its efforts.

Where to get your 2027 calendar

The ‘La Cala’nder Girls! 2027 calendar is available from the La Cala Lions Charity Shop in La Cala de Mijas and wherever members of the Lions are out and about, for just €10.

Whether you are a regular supporter, a local resident or simply looking for an amusing Christmas gift, the calendar offers a chance to enjoy some musical theatre nostalgia while supporting the club’s charitable work.

And with a different showbiz-inspired picture to enjoy as the months pass, what better way to start 2027?

Dancing for Dementia

Don’t forget that on October 22 there is Strictly Olivia’s, Dancing for Dementia, fundraising event for the Lions Alzheimers Group. There will be dinner, dancing & entertainment, for a fantastic fundraiser.

Latin American & Ballroom Dancing display with the sensational Alberto Andrada, professional dancer with his enigmatic and glamorous students Jaks and Renate. Join in with Alberto on the Dance floor later and learn some sexy dance moves!

Tickets cost just €60 (€10 of which goes directly to the charity). Call +34 952 494 935 to reserve, or WhatsApp +34 608 784 367. 7 o’clock sharp start.

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Low-Cost Airlines Defy Fuel Crisis As Millions Flock To Spain’s Airports

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If you have tried booking a flight to or from Spain this year, you may have noticed that the appetite for air travel has not gone away, even as airlines face rising fuel bills and uncertainty over the conflict in the Middle East. Millions of passengers have continued to pass through the country’s airports, with budget airlines playing a major role in keeping traffic moving.

Spain’s airports handled a record 257.2 million passengers between January and September 2026, an increase of 4.1 per cent compared with the same period last year. The latest figures underline how strongly low-cost carriers have contributed to demand during the busy summer travel season.

Ryanair leads the low-cost race

Ryanair remained Spain’s busiest low-cost airline during the July-to-September period, carrying 18.51 million passengers, up 1.9 per cent on the previous year. Vueling followed with 10.69 million, an increase of 5.4 per cent, while easyJet carried six million, up 1.2 per cent. The strongest growth came from smaller competitors. Wizz Air increased passenger numbers by 43.7 per cent, reaching the top ranks of airlines operating in Spain.

Volotea grew by 17.5 per cent, Jet2 by 10 per cent and Iberia Express by 9.4 per cent. The figures show that the summer increase was not confined to Spain’s three biggest low-cost operators. The airlines have benefited from demand for flights linking Spain with other European countries, including holiday destinations. Spain has also attracted travellers seeking a destination perceived as safer amid geopolitical instability, according to the Cinco Días report.

Fuel costs put pressure on airlines

The rise in passenger numbers has come as airlines contend with a steep increase in operating costs. European jet fuel prices rose by 122 per cent over a year, according to indices compiled by the International Air Transport Association (IATA) and cited by Cinco Días. The conflict in the Middle East has added to uncertainty over fuel prices and airline planning.

The pressure is already shaping decisions. Ryanair has adjusted capacity at several regional Spanish airports while focusing on larger airports and popular sun-and-beach destinations. IAG, the parent company of Iberia and Vueling, has also sought to contain capacity to limit the impact of higher kerosene costs.

The financial strain is particularly visible among smaller operators. Wizz Air reported losses for its first fiscal quarter, which ended in June, while Volotea has entered preliminary creditor-protection proceedings as it works to restructure its debt. Both still ranked among the 20 largest airline operators in Spain during the summer period.

Spanish airports continue to grow

The increase in low-cost traffic formed part of a wider rise across Aena’s Spanish airport network. In September alone, airports handled 31.7 million passengers, 4.2 per cent more than in the same month of 2025. Aircraft movements rose by 5.3 per cent, although freight volumes fell by 5.7 per cent.

Madrid-Barajas recorded 6.3 million passengers in September, up 6.6 per cent year on year. Barcelona-El Prat handled 5.4 million, while Palma de Mallorca recorded 4.2 million. Málaga-Costa del Sol also saw a strong month, with 2.8 million passengers, an increase of 6.8 per cent.

For travellers, the figures show that demand for flights to and from Spain remained strong through the main summer season. For airlines, however, more passengers have not removed the challenge of keeping flights profitable as fuel and geopolitical risks continue to weigh on the industry.

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