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Rental Income - Tax

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Posted: Wed Oct 3, 2018 8:26pm
21 replies274 views4 members subscribed
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d80gs2

Posts: 20

Location: Villamartin

4 helpful posts

Hi,

For the last two quarters (Apr-Jun & Jul-Sept) I have completed the relevant form (210) and declared the rental income and any deductions.

For Oct-Dec, I know there will be no rental income. Do I have to complete effectively a nil return or do I capture this quarter as part of the imputed tax calc due separately?

Cheers,

d80gs2

jimtaylor

jimtaylor

Legendary helpful member

Thu Oct 4, 2018 4:38am

Posts: 2227

Location: Almoradí

3120 helpful posts

Posted: Thu Oct 4, 2018 4:38am

You don't need to do a nil rental return. Just do an imputed tax return for the proportion of the year in which there's no rental income.

Stevec61

Stevec61

Helpful member

Thu Oct 4, 2018 9:35am

Posts: 217

Location: Playa Flamenca

118 helpful posts

Posted: Thu Oct 4, 2018 9:35am

d80gs2 wrote:

Hi,

For the last two quarters (Apr-Jun & Jul-Sept) I have completed the relevant form (210) and declared the rental income and any deductions.

For Oct-Dec, I know there will be no rental income. Do I have to complete effectively a nil return or do I capture this quarter as part of the imputed tax calc due separately?

Cheers,

d80gs2

My understanding is that you don’t need to file a tax return for the current year until next year, and by then you will know if any income rental income was received?

When you say that you have  completed returns for the last 2 quarters, do you file your returns on a quarterly basis as opposed to an annual return?

jimtaylor

jimtaylor

Legendary helpful member

Thu Oct 4, 2018 9:43am

Posts: 2227

Location: Almoradí

3120 helpful posts

Posted: Thu Oct 4, 2018 9:43am

Steve, from the way he posed the question, d80gs2 must be non-resident.

Residents include rental income in their annual return which is done in arrears.

Stevec61

Stevec61

Helpful member

Thu Oct 4, 2018 9:49am

Posts: 217

Location: Playa Flamenca

118 helpful posts

Posted: Thu Oct 4, 2018 9:49am

Hi Jim

I’m a non resident and only do one non resident tax return per year, showing any income from the previous 12 monthly tax period is Jan to Dec. I’m not receiving any rental income yet but am exploring this option for next year. I was just confused as to why d80gs2 may be filing his tax returns quarterly?

d80gs2

d80gs2

Original Poster

Thu Oct 4, 2018 10:09am

Posts: 20

Location: Villamartin

4 helpful posts

Posted: Thu Oct 4, 2018 10:09am

Hi,

For clarity - I am a non Spanish resident (UK tax resident). I think it's probably worth setting out what has been filed.

For 2017, the property was owned for only part of the year. No rental income was received and so the tax return which was completed earlier this year was based on the imputed tax.

For 2018:

Q1 - The property remained empty in the period. I've not filed anything for this yet,

Q2 - The property was let out as a holiday let. A return has been filed for the rental income and the costs associated. The tax due has been paid.

Q3 - The property was let out as a holiday let.A return is shortly to be filed for the rental income and the costs associated and the tax will be paid in the next werk or so.

Q4 - The property will remain empty in the period.

I assume that in 2019 I will file an imputed tax return covering Q1 and Q4 2018. Q2 & Q3 tax will already have been paid due to the returns made in the year. There is no nil-return when no rental income is received.

Does that make sense?

Cheers,

d80gs2

jimtaylor

jimtaylor

Legendary helpful member

Thu Oct 4, 2018 10:24am

Posts: 2227

Location: Almoradí

3120 helpful posts

Posted: Thu Oct 4, 2018 10:24am

d80gs2, you're quite correct.

Steve, if you don't let it out then it's just the annual return in arrears. If you do let it out, then you need to do a return for each calendar quarter you receive rental income, and do so (I think) within twenty days of the end of the quarter.

Incidentally, if there's a no-deal Brexit and we leave the EU without a transition period, then I'm pretty sure that non-EU citizens pay a higher rate of tax, and I also think they can't claim expenses against rental income.

Stevec61

Stevec61

Helpful member

Thu Oct 4, 2018 10:33am

Posts: 217

Location: Playa Flamenca

118 helpful posts

Posted: Thu Oct 4, 2018 10:33am

Hi d80gs2

Your explanation and breakdown clearly makes sense, I understand the non-resident tax rules and recognise that a tax return has to be submitted by all property owning non-residents, regardless of whether or not any rental (or other source of income) has been received. 

We have had our property for 3 years now, and I have submitted my returns usually around Feb/March following the previous tax year. What i am unclear about is that you state the tax return that you will be submitting next year will cover periods Q1 and Q4 (of which you haven't received any rental income), and for periods Q2 and Q3 you state that tax has already been paid due to returns paid in the year (2018 I am assuming)?

Please don't take my query the wrong way, I am in no way stating what you need to do as I am still finding my feet with the Spanish bureaucracy and tax system, my confusion is that you appear to be doing tax returns on an ongoing basis in the current year (for Q2 and Q3) when this may not be necessary? You may be doing the returns more frequently so that you can manage your finances more closely, and pay the tax sooner, which is commendable - but just in case you are not aware, I believe that one tax return for the previous 12 month tax year is required?

Jim knows the system inside out, and I refer to his catalogue of online "Jim's Guides" for assistance in all things Spanish - and I'm sure that Jim will put me right if my information above is incorrect!

Stevec61

Stevec61

Helpful member

Thu Oct 4, 2018 10:37am

Posts: 217

Location: Playa Flamenca

118 helpful posts

Posted: Thu Oct 4, 2018 10:37am

Hi Again d80gs2

As i was writing up my previous post, Jim stepped in and posted a reply, confirming that submitting quarterly returns (as you are doing) is the correct process - so please accept my apologies for any confusion, and thanks to Jim for clarifying to me that any income does need to be submitted on a quarterly basis..!!

Every day is a learning day for me, particularly in Spain, and this forum and its contributing members are a godsend - so thank to you both for this information :-)

Stevec61

Stevec61

Helpful member

Thu Oct 4, 2018 10:45am

Posts: 217

Location: Playa Flamenca

118 helpful posts

Posted: Thu Oct 4, 2018 10:45am

Ha Jim - I did indeed miss your post,  as I was typing out my reply to the previous post from d80gs2, you were on the ball and too quick for me matey!!

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