UK Buy to let tax in Spain?

UK Buy to let tax in Spain?

9:58 AM, 7th March 2022, About 2 years ago 14

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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


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9:28 AM, 12th March 2022, About 2 years ago

Reply to the comment left by Sjp at 12/03/2022 - 08:50
I'm sorry but as I'm not in this situation so I wouldn't like to comment. Both countries will insist on you paying tax, in Spain as a non-resident. I can give you contact details of my gestoría who is English and fully understands both UK and Spanish tax laws - she is extremely busy sorting out tax problems that Spanish 'tax advisors' have created for many Brits but she will always help where she can. Renting in Spain is a minefield and the Spanish taxman is brutal with fines and will take his money from your bank account without a by your leave! Getting it back, however, is nigh on I know from bitter experience!

Shakeel Ahmad

11:46 AM, 12th March 2022, About 2 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.

16:09 PM, 18th March 2022, About 2 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%

Luke P

16:51 PM, 18th March 2022, About 2 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.

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