Posted: Sat Mar 11, 2023 8:18pm
Hi Dave,
The link to apply to HMRC for Non-resident landlord status can be found here:
https://www.gov.uk/tax-uk-income-live-abroad/rent
You'll need to declare your rental income in the UK, either via the Self-assessment system, or engaging a company to do this for you:
https://www.gov.uk/tax-uk-income-live-abroad
In Spain, you'll also need to declare the rental income, but under the terms of the Dual Taxation Agreement, any tax due will be payable to the UK, rather than Spain.
Regarding your occupational pension, all pensions are taxable in Spain unless they are classified as "Crown" pension, e.g. military, civil service, some NHS and teachers' pensions.
The key mechanisms for being tax compliant in Spain are:
- Modelo 720 Declaration of (worldwide) Assets: if you have assets worth a minimum of €50,000 in at least of 1 of 3 asset classes (bank/savings accounts, investments and pensions, and property), you must complete a Modelo 720 between January and end March.
This is completed initially, but only has to be done again if you have an increase of a minimum €20,000 in any of the asset groups.
- Modelo 100 Income Tax Return: your pension, income rental and any other income, e.g. savings interest, must be declared on the Modelo 100 between April and end June each year.
You can engage specialists in both countries to do these returns for you and I would highly recommend you use a "fiscal asesor" in Spain, at least for your initial M.720 and M.100 submissions.
With regard to submitting your property rental declaration to HMRC, self-assessment is very straightfoward - HMRC has published very good online guides and videos to help you. In the first instance, you'd need to apply for a Government Gateway ID:
https://www.gov.uk/log-in-register-hmrc-online-services
You can prepare your tax return online and use the system to calculate any tax due, but note that, unlike UK residents, non-resident landlords must print off the forms and post them to HMRC (the system does actually allow you to submit your return online, but if you do, you'll get a £100 fine!).
If you prefer, there are UK companies offering these services, but I'm afraid that I can't recommend any, as I use Self-assessment.
Kind regards,
Kim