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I am going to apply for a non lucrative visa.
I own a property in U.K. and also in Spain. When I apply for the visa is there any tax implications on the property in the U.K. I am not renting it out
No, you just have to declare it on an annual 720 form (along with anything else like bank accounts and shares) as assets over 50,000 euro.
You do not pay tax on it, simply on any income such as rent that you may get from it.
However, if you are not renting it out would it be left empty for a long time? If the holder of a UK passport you are limited on the amount of time you can spend away from Spain in the first 5 years with a non lucrative visa. You cannot be out of the country for more than 6 months in any one year (this is being reviewed as the supreme court said it was not correct) but you cannot be out of Spain for more than a total of 10 months in the first 5 years or it could revoke your visa. That last bit is not under review.
Once you have had what they call "temporary" residence for 5 years, you can apply for permanent residency and the time limits out of Spain are much longer. Note that the 10 months is out of Spain and not the Schengen area.
Also note that if you do decide to sell the property in UK at a later date, you would be liable to Capital Gains Tax in Spain on that property which, the way things are going up in UK, could be quite considerable. You can only be exempt CGT if you sell the property before you become a fiscal resident in Spain which is accorded once you have spent over 6 months in any one tax year (Jan to Dec).
Posted: Tue Apr 16, 2024 9:54pm
marcliff wrote on Tue Apr 16, 2024 9:45pm:
No, you just have to declare it on an annual 720 form (along with anything else like bank accounts and shares) as assets over 50,000 euro.
You do not pay tax on it, simply on any income such as rent that you may get from it.
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However, if you are not renting it out would it be left empty for a long time? If the holder of a UK passport you are limited on the amount of time you can spend away from Spain in the first 5 years with a non lucrative visa. You cannot be out of the country for more than 6 months in any one year (this is being reviewed as the supreme court said it was not correct) but you cannot be out of Spain for more than a total of 10 months in the first 5 years or it could revoke your visa. That last bit is not under review.
Once you have had what they call "temporary" residence for 5 years, you can apply for permanent residency and the time limits out of Spain are much longer. Note that the 10 months is out of Spain and not the Schengen area.
Also note that if you do decide to sell the property in UK at a later date, you would be liable to Capital Gains Tax in Spain on that property which, the way things are going up in UK, could be quite considerable. You can only be exempt CGT if you sell the property before you become a fiscal resident in Spain which is accorded once you have spent over 6 months in any one tax year (Jan to Dec).
Thank you for that
My intention was to add my son and daughter in law onto the deeds and allow them to live in the property free of charge apart from the bills they would pa
