AJayUK

Hi fellow Ex Pats..
I want to rent out a casita we have on our property, I want to do it legal, can anyone direct me to what I will need/require in order to do this???
I'm talking documents etc, I have no problem paying Tax on our rentals, I just dont want a night time visit and back payments to the tax man here

TIA

valenciatim

Hi, I believe that to be completely legal, you not only have to pay tax on the rental, but as it will be a business, you will have to declare yourself as self-employed and therefore pay monthly contributions to social security, the minimum of which is around €240 a month.
Regards
Tim

EsuriJohn

Hi AJayUK,

A lot depends on where your Casita is. Its a lot tougher in some regions of spain than others and taxes depend on your residence status. Give us some clues.

Regards,

John.

AJayUK

Ahh Ok, Im In Valencia Region, Monserrat. We have a 2000 M2 plot with a small casita next to our Villa, it has 2 bedroom, sitting room.kitchen. I want to rent it out legal and need to know what to do, who to talk to, what docs etc I need. I dont have recidencia because thats not needed now, I have a Nia number and we are registered with the local council as living here.

jdr

You do need a residencia certificate now it has taken place of the card, if you have a card you will need to get a certificate when it runs out.

EsuriJohn

Hi,

I meant with regard to tax are you tax resident ie more than 183 days in Spain per annum

Regards,

John.

AJayUK

Yes, we moved here 18 months ago, we are still paying UK tax on pensions etc, but nothing here

snikpoh

It's my understanding that after 183 days, you MUST pay Spanish tax (even for UK pensions) - or at least declare yourself.

Regarding renting, I think the minimum is to register with your local town hall - they might then come and check for health & safety (but rarely do in my experience).

EsuriJohn

Hi AJayUK,

If you are in Spain and have a state pension you can have that transferred direct at a very good rate of exchange by the DWP before tax. You then pay tax in Spain. With the allowances for a couple and if you have no other income you would probably not have anything to pay.

If you have other Government Pensions they must be taxed at source in UK but are then disregarded in Spain and they also can be transferred at the same rate direct to your Spanish account. However you would have the UK allowances to set against this pension.

Private pensions are all different so you would have to enquire of your provider what its rules are.

You should make a declaration in Spain and reclaim any UK tax paid under the Double Taxation treaty.

With regard to renting you do have to notify the Regional Tourism Dept. in Andalucia but nothing more. Other Regions are much stricter and require much more ie. Mallorca.

If all your property is on one Escritura I do not think you would have to register as self-employed and you can claim expenses against your rental income. I would contact a good Gestoria in your area for the best way to get all this sorted out.

Regards,

John.

AJayUK

Ok Ive done quite a lot of research into this and I have found out that in reality I dont have to inform anyone!
I will have to fill out a tax form but I am entitled to earn upto 13,000 euro a year without having to pay any tax. From what Ive found out it depends on the build and value(escatura) of your home how much your entitlement is.
So, seeing as I dont take in 13.000 a year Im happy and relieved...

valenciatim

I can understand the tax position, but surely you will be operating a business or be self employed and therefore liable to pay social security payments to be completely legal?
Tim

AJayUK

Not according to my solicitor(Spanish), I did mention about informing the tourist board but he just laughed and said only If you want to advertise for them.
I don't run a B&B so I don't have any problems like health and safety to put up with, I just rent out a self catering annex.

valenciatim

Fair do's!
I find that really surprising, as when I enquired about a similar thing with my gestor, they said that it would be seen as a business, and although the earnings would not require tax to be paid, it would still have to be declared and therefore social security would have to be paid.
Good luck with your venture!
Regards
Tim