UK vs EU Owner: The Tax Gap After Brexit

Here's something that catches a lot of British owners off guard: since Brexit, the Spanish tax office treats UK owners very differently from EU owners. Same island, same type of property, very different numbers.

The Rate Itself

EU and EEA resident owners pay 19% tax on their net rental income. UK owners, now classed as non-EU, pay 24%. That gap alone is significant.

The Bigger Hit: No Deductions

This is the part that really stings. EU owners can deduct expenses, mortgage interest, community fees, maintenance, before tax is calculated. UK owners currently cannot deduct anything. The 24% applies to gross income, not net.

In practice, this means two owners with an identical property and identical rental income can end up with a genuinely different tax bill, purely based on nationality.

Filing Dates Have Shifted

From the 2026 tax year onward, rental income must be declared between 1 and 20 April of the following year. This moved from the January window many owners were used to, so it's worth updating your calendar.

Don't Forget IGIC

On top of income tax, holiday rental owners in the Canary Islands also need to register and file IGIC, the region's local indirect tax. This is separate from standard Modelo 210 filings and easy to miss if you're used to mainland Spain rules.

Next post, in a couple of days: we'll look at what actually happens if you rent without a valid licence, and how enforcement works in practice.

This post is general information only, not financial or legal advice. Tax rules for non-resident property owners are complex and change often. Always check your specific situation with a qualified tax adviser before making decisions.