The Treasury makes it clear that a landlord, whether he resides in Spain or not, has to pay taxes in the Income Tax return for the rental income of your home located in Spain, even if the tenant does not pay you and has not received them since, according to the IRPF law, these are declared in the year in which they are payable, not when they are collected.
This has been resolved by the Central Economic-Administrative Court (TEAC) in a resolution, issued on June 24, 2025, in which a taxpayer resident in Switzerland declared income from the rental of a home in Spain. Subsequently, having not received the agreed monthly payments, he requested a judicial eviction procedure and requested the return of the fees paid, arguing that they were unearned income.
The TEAC, however, confirmed the denial of this refund, pointing out that the fact of not having received the income does not prevent them from being taxed, as long as they are payable by contract. The resolution expressly cites article 14.1.a) of the Personal Income Tax Law, a rule that establishes the general rule of temporal imputation: income from real estate capital must be declared in the year in which they are payable, and not in the year in which they are received.
The doctrine of the Supreme Court applies to both residents and non-residents
In its arguments, the Court recalls that this interpretation was ratified by the Supreme Court in its ruling 1467/2021, which established doctrine on the matter. According to said ruling, the amounts that the landlord has the right to receive after filing an eviction lawsuit for non-payment maintain their nature as returns on real estate capital and must be allocated to the year in which they are payable.
The TEAC also clarifies that this obligation also applies to non-resident taxpayers, since the Non-Resident Income Tax (IRNR) is interpreted, by virtue of Article 3 of its regulatory law, in accordance with the Personal Income Tax regime. Consequently, the temporary imputation criterion is identical to that of resident taxpayers.
Furthermore, remember that, in accordance with the Convention to avoid double taxation between Spain and Switzerland, Spain can tax income obtained from the rental of properties located in its territory, even if the owner resides outside.