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We are thinking of buying a small property to rent out long term in La Siesta, but want to know how much income tax we would have to pay on the rental income.
Do we have to have a licence/ permit to do this and is there anybody who could help advise us?
Posted: Tue Jul 21, 2020 5:11am
Legendary helpful member
As I understand it, you don't need a license for a long-term residential let.
Prior to the end of the Brexit transition period, tax is 19% of net income, after the deduction of allowable expenses.
Assuming you're British and non-resident, after Brexit tax will be 24% of gross income, with no deductions allowed.
Posted: Tue Jul 21, 2020 12:28pm
Helpful member
Tony 77 wrote on Mon Jul 20, 2020 5:14pm:
We are thinking of buying a small property to rent out long term in La Siesta, but want to know how much income tax we would have to pay on the rental income.
Do we have to have a licence/ permit to do this and is there anybody who could help advise us?
60 percent of rental income.....on long term rentals is tax free!
Posted: Tue Jul 21, 2020 2:13pm
Helpful member
This post that was quoted has been deleted.
Hi Ray
It pops up on a Google search but we have had 3 accountants since our move here and each has applied this.
Our rental properties are in UK but it still applies
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Posted: Tue Jul 21, 2020 6:05pm
Super helpful member
ldp wrote on Tue Jul 21, 2020 12:28pm:
60 percent of rental income.....on long term rentals is tax free!
60% if your rental income is taxed, that figure is surely incorrect? Unless you’re adding the rental income to a high earning salary, there is no way that is the right zmount
Posted: Wed Jul 22, 2020 8:37am
Helpful member
Stevec61 wrote on Tue Jul 21, 2020 6:05pm:
60% if your rental income is taxed, that figure is surely incorrect? Unless you’re adding the rental income to a high earning salary, there is no way that is the right zmount
Tax free.....not taxed.
Google it, it is correct.
Spanish tax man is keen to promote long term rentals
Not an expert but 3 accountants have said the same and information is readily available if Google it
Posted: Wed Jul 22, 2020 4:45pm
Legendary helpful member
ldp wrote on Wed Jul 22, 2020 8:37am:
Tax free.....not taxed.
Google it, it is correct.
Read more...
Spanish tax man is keen to promote long term rentals
Not an expert but 3 accountants have said the same and information is readily available if Google it
Thank you, ldp, I've learned something:
Arrendamiento de inmuebles destinados a vivienda: reducción del 60 por 100.
En los supuestos de arrendamiento de bienes inmuebles destinados a vivienda, el rendimiento neto positivo, calculado por diferencia entre la totalidad de ingresos íntegros y los gastos necesarios que tengan la consideración de deducibles, se reducirá en un 60 por 100
Source:
