What expenses can I deduct for rental income?

The expense deduction is generally available only to EU/EEA residents — and only to the extent the costs are directly connected to the rental and attributable to the rental period on a time-apportioned basis. Generally deductible: IBI (property tax, pro rata for rental days), community charges (Comunidad, pro rata), insurance premiums (pro rata), mortgage interest (pro rata for the rental period), repair and maintenance costs (where rental-related), management costs, and depreciation (generally possible, under applicable calculation rules and with supporting documentation). Receipts for all deductible expenses should be retained for at least four years — the AEAT may request them during an audit. For those resident outside the EU/EEA, current legislation (Article 24 LIRNR) does not permit expense deductions — 24% applies to gross receipts. The Audiencia Nacional ruled on 28 July 2025 (SAN 3630/2025) that this exclusion violates Article 63 TFEU. The ruling is not yet final and the Spanish Tax Agency continues to apply current legislation pending the Supreme Court's decision. For owner-occupied or vacant properties, no expense deduction is available — neither for EU/EEA residents nor for third-country residents.