suejh1

Hi I am about to work out our first lot of NR tax on a new holiday rental, renting out 105 days a year (paying tax in UK), I understand I have to pay the tax in Spain too, but can't find out the allowances on mortgage interest etc.. Is the whole amount of mortgage interest allowed and maintenance for the year or is it pro-rata according to the third of the year that we rent out, I understand we need to pay NR tax imputed on the remainder of the year that we do not rent.

Any help gratefully received.

Rosemary

Hi and a warm welcome to the Spanish forum on BE. Myself and Fred James are the moderators for the Spanish forums whilst BEVS moderates Europe. Moderators are there to ensure that the site runs smoothly within the rules of BE. This is so that members gain the information that they are looking for and find their experiences on the forums to be friendly and worthwhile.

Problems and complaints should always be addressed to a moderator who will look into the matter and deal with it efficiently and fairly. Our members who post in the Spain Forums are usually friendly and helpful with a wealth of knowledge about the issues of living in Spain. I hope that you enjoy your time participating in the forums.

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Rosemary

Loafing Along

Tax on the rental property should be paid every quarter and you are allowed all of the mortgage interest along with other expenses such as local taxes , IBI and Basura, any community charges and documented expenses on maintenance.

spainrico

I will be amazed if you get any relief on mortgage interest as it is not your main residence, and you are non resident - but good luck!

Loafing Along

You are right of course, it has to be your main residence that is being rented out.

Eric S

Remember that tax on rentals needs to be submitted quarterly, and imputed tax is submitted yearly.

- Eric S.

snikpoh

Can you expand on that because I don't think that's the whole story.

For example, I have a number of apartments that I rent out yet my tax return is done annually.

Eric S

I'm not sure about residents, but for non-residents, Form 210 is required to be submitted after each quarter for properties that have rental income. In addition, after the end of the year, you must submit form 210 for imputed tax if there was any time during the year that the property was not rented.

So you could possibly have to fill out Form 210 five times per year. We are in that exact situation. We rent our place 10 months of the year and use it ourselves the remaining time. I fill out the Form 210 five times per year. And each time its two forms -- one for me and one for my wife!

- Eric S.

Loafing Along

That is for a resident. Non-residents do it quarterly

suejh1

Thank you for the advice, much appreciated.

I've got a clearer picture from trawling the net for advice and seem to be able to work it out. There do seem to be periods when our expenses are higher than the rental ( ie for a week in the Spring when it is much cheaper to rent, after I have deducted the 1/52 pro-rata figures of utilities, advert, maintenance and mortgage interest, etc...) - if there is a loss in a quarter would I still declare it as a rental or imputed?

Thanks

suejh1

Thank you!