Property income in UK.
Oct 31st 2019, 12:29 pm
#16
Retired and loving it!
Joined: Sep 2007
Location: Ontinyent - Valencia region (campo)
Posts: 5,159
Re: Property income in UK.
Yes, you can definitely receive UK rental income Gross providing it's with the agreement of HMRC and I believe you need to be letting through a letting agent.
Yes you can definitely deduct management expenses, insurance and repairs plus another 60% on your Spanish tax Return.
Yes you can definitely deduct management expenses, insurance and repairs plus another 60% on your Spanish tax Return.
Any tax paid can then be offset when you declare the income in Spain.
Oct 31st 2019, 1:16 pm
#17
Forum Regular
Joined: Oct 2019
Location: Aussie nomad with no fixed abode
Posts: 236
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)
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)
Oct 31st 2019, 2:44 pm
#18
Joined: Jun 2006
Location: Granada Costa
Posts: 10,898
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.
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.
