hi , was wondering if anyone could help or give advise with regard to taxation if you have a rental property in the U.K. and you are a resident in Spain, in which country do you pay your tax. we are just trying to find out if you pay more or less tax in these circumstances.
Thank you for any advice
Posted: Mon Jan 29, 2018 5:15am
Legendary helpful member
The Dual Taxation Treaty isn't as clear as it might be, because the section on rental income says that:
Income derived by a resident of a Contracting State from immovable property (including income from agriculture or forestry) situated in the other Contracting State may be taxed in that other State.
Note the use of may instead of shall.
However, the way it operates is that in your case you declare the income in the UK and pay tax to the Inland Revenue.
You also declare the income on your tax return here, including details of the tax paid in the UK, so this can be offset against tax due here.
Posted: Mon Jan 29, 2018 2:18pm
Many thanks ...
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