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I am interested in the tax implications for me as a resident or non-resident for income from holiday lets. I am particularly interested in what is deductible on the income if I am a resident (I understand there is a set 20% tax rate for non-residents). Also, can anyone can suggest a good english-speaking accountant to help me sort out the possibilities? Thanks!!
You, and others, might find this an interesting read.
Posted: Tue Oct 29, 2019 9:49am
Super helpful member
Don’t forget that any property that you may be using for holiday let’s must have a tourist licence - you won’t get far without one
With the latest Brexit delay is the Transition Period also a movable date in this seemingly endless process.
And everything might change again if there is a General Election and the possibility of the Democratic wishes of the British people getting overturned.
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Posted: Wed Oct 30, 2019 4:13pm
Legendary helpful member
This post that was quoted has been deleted.
Ray, there's only one set of rules for resident tax. Plus the double taxation treaty won't be affected by Brexit, as it's a bi-lateral agreement.
Posted: Wed Oct 30, 2019 4:14pm
Legendary helpful member
This post that was quoted has been deleted.
I disagree. Non-resident tax on rentals is paid to Spain, but the amount paid can be offset against any UK tax liability.
Posted: Wed Oct 30, 2019 6:11pm
I agree! However, it seems to me that if you have significant rental income, it is better to remain a non-resident rather than pay the Spanish tax rate! The difference being a 19% tax rate for an EU citizen non-resident verses much higher if you are a resident. Especially if the allowances disappear with higher earnings.
Any comments on if my thinking here is correct?
Thanks
It’s income earned in Spain not UK therefore tax should be paid in Spain.
Posted: Thu Oct 31, 2019 4:46am
Legendary helpful member
'much higher if you are a resident'
Incorrect. Rental is one of the forms of income where up to €6000 is taxed at 19%.
