Uncollected Rent Now Taxable for Non-Resident Landlords in Spain: TEAC Aligns with Supreme Court Doctrine
24/09/25 13:25 Filed in:
Derecho Tributario
Foto de Olga DeLawrence en Unsplash
Important Update for Non-Resident Landlords in Spain
If you are not a Spanish tax resident but own rental property in Spain, a recent development may directly affect your tax obligations.
The Central Economic-Administrative Tribunal (TEAC)—an internal review body of the Spanish Tax Agency, not part of the judiciary—has confirmed that it will follow the doctrine established by the Spanish Supreme Court in its judgment No. 1467/2021 of 14 December 2021 (Case No. 5253/2020 – ECLI:ES:TS:2021:4649 – CENDOJ No. 28079130022021100421). This position has now been expressly adopted in TEAC Resolution No. 1522/2022 of 24 June 2025.
What this means for landlords
Under this criterion, landlords must declare as taxable income not only rent actually collected but also rent that should have been collected but has not been paid by the tenant.
The Supreme Court clarified that:
- Rental payments and amounts equivalent to rent (such as reimbursement of utilities) are classified as real estate capital income from the moment an eviction claim for non-payment is filed—together with a claim for unpaid amounts—until the landlord effectively recovers possession of the property.
- This income is allocated to the tax year in which it becomes legally enforceable, regardless of whether it has actually been paid.
- Special rules apply when payments are deferred, or when the claim is under judicial dispute (litigious credit).
Key legal point
Although the filing of an eviction lawsuit constitutes grounds to terminate the lease, the contract is not legally terminated until the court issues judgment and the landlord take possession of the leased house. For this reason, the unpaid amounts are treated as rent, not as compensation for unlawful occupation.
Practical effect for non-resident landlords
The Non-Resident Income Tax (IRNR) regime is now fully aligned with the rules that apply to Spanish tax residents under Article 22 of the Personal Income Tax Law (IRPF). In practice, this means non-resident landlords face the same obligation to declare both collected and uncollected rent.
If you are a non-resident renting property in Spain, you should review your current declarations and assess whether adjustments are necessary to reflect this binding interpretation. Professional tax advice is strongly recommended to ensure compliance and to manage potential disputes regarding uncollected rent.
Tags: alquileresAbogados, Derecho, Ley, Noticias, Fuengirola, Mijas, Málaga no residentes
