Re: Property income in UK.
 

But if you receive the income gross, you MUST then do a self-assessment tax return to declare that income (in UK).

Any tax paid can then be offset when you declare the income in Spain.

Re: Property income in UK.
 

Thanks very much for this info; I cannot believe I didn't come across it in all my searching on Google. I'm glad I was wrong; moving to Spain in 2021 is now back on the table!

I don't quite follow what the 60% deduction is for and how it is applied? How would it work in the following scenario:

Gross rent for year was 50000
expenses for year totalled 15000 (insurance, local taxes, and repairs)

Re: Property income in UK.
 

As far as I know, you work out the gross income after deductions and just declare 40% of it. The Spanish tax system is very simple and you do not have to give any explanations to how you arrive at (any) income figures. You just put a number in a box on the online declaration and pay the tax. No backup paperwork required.

If, however, you are ever the subject of a tax investigation, then you will have to show how you arrived at the figures you declared.