bigglesworth

I do not know how many this affects, but anyone holding on to their UK property, and renting it out as a holiday rental, will lose the cost offset against other income

http://www.telegraph.co.uk/finance/p...er-Budget.html

It looks as though you do not get this relief if you are renting out Spanish property as a holiday let though.

Beachcomber

Income on holiday rentals in Spain should be declared in Spain at 24% of the rental income.

snikpoh

I think that's only for non-residents though isn't it?

bigglesworth

I would presume that it all depends how and where (and if?) you declare income and are taxed

Beachcomber

Both residents and non-residents have to declare rental income to the Spanish authorities at 24%. The only difference is that residents declare it on their annual tax return and get generous allowances and non-residents have to declare it monthly (in some cases three monthly) and get no allowances.

Sharon B

It would be interesting reading to know what percentage of landlords, resident or not, actually declare rental income in Spain.

Fred James

I don't know the figures but it went up very significantly when the tax rules changed a couple of years ago.

If you are a Spanish tax payer you have to give details of where you are living, the catastral reference and whether you own it or rent it.

These details are then compared against the tax returns of the owner and if the rental is not declared - bingo - you're nabbed!

OK this won't have much effect on short term lets but it has really affected undeclared long term lets.

Bearing in mind the fact that the government tax income is drastically reducing due to the present economic situation I would expect them to start trying to claw back some of the tax that is still not being declared and holiday lets are one of the obvious targets.

jurdyr

OK this won't have much effect on short term lets but it has really affected undeclared long term lets. not ture have to on short term aswell , last year the tax was watch the net for holiday lets ....

snikpoh

I was hoping it was 18% - this year (2009) will be our first at declaring rental income.

Beachcomber

I just declare it on my annual tax return and the PADRE program works it all out.