Overseas Lettings – Tax Implications Following Brexit?
11:47 AM, 20th October 2021, 5 years ago
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For several years we have let our house in Mijas, Spain, as a holiday let. On preparing my quarterly tax return for Spain, I find that expenses are no longer allowed, due to Brexit, as we are no longer in Europe as UK residents.
Is there any way we can claim these expenses, in our UK tax return, against profits made from our portfolio of UK let properties?
The latter are not holiday lets.
Many thanks
Malcolm
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mydeposits - Rent to Rent Guide
Member Since May 2018 - Comments: 45
12:05 PM, 20th October 2021, About 5 years ago
And as a non-EU resident, your property owners tax has risen from 19% to 24%.
Comments: 297 - Articles: 1
12:33 PM, 20th October 2021, About 5 years ago
If only someone had warned us in 2016 that there would be a considerable downside to Brexit (to misquote David Davies)
Member Since March 2014 - Comments: 55
12:38 PM, 20th October 2021, About 5 years ago
Hi Malcolm
If you receive income from overseas property you will need to prepare the Foreign Property pages of your UK Tax Return. This separates the income and expenses from UK let property, UK income, etc and overseas let property, meaning that you can’t offset one against the other.
Do you use a Gestoria to prepare your Spanish Tax Return? It might be worth engaging the services of a Spanish Gestoria to help you.
Member Since November 2020 - Comments: 36
2:04 PM, 20th October 2021, About 5 years ago
Do also bear in mind that you can claim credit for at least some of the Spanish tax against your UK tax. Worth engaging a UK accountant to help with that.
Member Since July 2013 - Comments: 19
4:07 PM, 20th October 2021, About 5 years ago
Reply to the comment left by Alex at 20/10/2021 – 12:38
Thanks Alex, I already do that for my UK tax return, and I do have a Spanish accountant preparing our Spanish tax return.
Member Since July 2013 - Comments: 19
4:10 PM, 20th October 2021, About 5 years ago
Reply to the comment left by Katy Ann at 20/10/2021 – 14:04
Thanks Katy Ann. I will do that. In the past, with claiming foreign expenses, we have never made a declarable profit. We most likely will this year, so I will claim in UK for taxes paid in Spain on the profit if any.
Member Since January 2020 - Comments: 102
4:36 PM, 21st October 2021, About 5 years ago
Interesting article here about the supposed illegality (under EU law ironically) of the different treatment of EU and non-EU property owners in Spain
https://www.thelocal.es/20201006/britons-who-let-out-properties-in-spain-to-see-taxes-triple-after-brexit/
Member Since October 2021 - Comments: 1
6:19 AM, 22nd October 2021, About 5 years ago
If I am a U.K. resident Irish passport holder what tax does that leave me paying should I have Spanish rental income? Is there any loophole for EU nationality I could benefit from?