UK Buy to let tax in Spain?
Hi there, I was wondering if anyone has any insight into the Spanish taxation on UK rental income. I am very close to becoming a Spanish resident, but I am worried about the overall taxes concerned. I am aware of wealth tax obligations and income tax obligations but have seen on some tax sites the mention of a 60% reduction of net rental income available in Spain but only for long term rentals.
As you can imagine, this would be an absolute game-changer in relation to how much tax I would have to pay.
If anyone is a Spanish resident who has UK buy to let properties and does or does not receive this allowance, I would be extremely grateful to know your thoughts.
Many thanks
Chris
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Member Since September 2016 - Comments: 105
9:28 AM, 12th March 2022, About 4 years ago
Member Since July 2013 - Comments: 303
11:46 AM, 12th March 2022, About 4 years ago
You only need to declare your property income in UK and all other income needs to be declared in Spain as you have stated that you have been in Spain for more than 183 days.
You may not be aware that you need to declare your world wide assets in Spain that would subject to Wealth tax ( Any asset worth more than €50,000 )
Bank Balance, stocks and shares, collection of your works by Turner & Constable, properties, land etc.
You will also loose your entitlement to principal and private residential relief( PPR ) As UK home is no longer your main home.
Comments: 124
4:09 PM, 18th March 2022, About 4 years ago
Reply to the comment left by Luke P at 07/03/2022 – 14:14
However once your NHR in Portugal has expired or, as many people discover, they aren’t eligible the tax on UK rental here is 28%
Member Since March 2015 - Comments: 1969 - Articles: 1
4:51 PM, 18th March 2022, About 4 years ago
Reply to the comment left by Gillian Schifreen at 18/03/2022 – 16:09
Don’t worry, I’ll be long sold up (or even dead) by then.