The sun, the sea, the climate... and the taxes? Those who own a property on the Costa del Sol but is not a tax resident in Spain, is currently facing a annual tax on a notional rental income - even when he or she is the home unrented, but just used themselves.
Two recent legal evolutions, one from Brussels and one from Madrid, put firm pressure on this scheme. And rightly so. Because this practice affects thousands of foreign owners in regions such as Marbella, Estepona, Mijas and Benalmádena - exactly the region where I, together with the team of Alness Luxury Real Estate, operate daily as a property consultant for foreign buyers and owners.
As a non-resident owner in Spain, you have to pay annual tax on a fictitious (non-existent) rental income. This is calculated as a percentage (usually 2%) of the cadastral value of your property. Even if you just stay there yourself - without any rental - the Spanish tax authorities consider this as 'deemed income'.
For example:
👉 Spanish residents pay this tax not at their main residence.
👉 Non-residents, including many Belgian and Dutch owners on the Costa del Sol, does.
In June 2025, the European Commission a infringement proceedings launched against Spain. According to Brussels, this tax scheme discriminatory and possibly contrary to EU law.
The difference in tax treatment of residents versus non-residents - even if both are EU citizens - would undermine the free movement of capital.
Spain was given two months to respond. If no adjustment follows, the case may be referred to the European Court of Justice. This could have far-reaching consequences for thousands of foreign owners in Spain.
On 17 July 2025, the Tribunal Económico-Administrativo Central (TEAC) - the highest tax court in Spain - confirmed that expats are also covered by the 'Beckham law' have to pay this tax on their main residence.
➡️ This scheme, designed to give foreign professionals attractive tax rewards, thus gets a big haul.
The consequence? A Spanish worker living in his own home pays no tax on assumed rental income.
A foreign expat in Málaga or Marbella doing exactly the same thing does pay.
TEAC's statement is binding on the Spanish tax authorities, thus confirming the structural distinction in treatment.
If you are not a tax resident in Spain, then:
At Alness Luxury Real Estate We assist Belgian, Dutch and other international clients with the purchase of real estate on the Costa del Sol on a daily basis.
Our role does not stop with the key transfer. We also take care of advice after purchase, with an eye for tax timeliness, legal context and potential risks or benefits long-term.
This issue shows once again how important it is to choose your real estate not only with your heart, but also with a legally and fiscally informed head.
The current tax on notional rental income is legally questionable, politically sensitive and socially unfair. Both the European Commission and the Spanish courts have now formally recognised this.
So there is a real chance that this arrangement will change in the foreseeable future - and that you, as a foreign owner Rightly entitled to reimbursement of wrongly paid taxes.
Would you like to know what this specifically means for your situation? Or are you considering a purchase and want everything to be fiscally correct and future-proof?
Feel free to contact me or the team at Alness Luxury Real Estate.
We guide you with expertise, transparency and a clear strategy - from purchase to aftercare.
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Copyright © 2025
Vanessa Vanderplas
Camino el Reloj 43 B01, Estepona 29860
