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Spanish Resident with UK Property

Spanish Resident with UK Property

Old Dec 22nd 2019, 1:41 am
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Default Spanish Resident with UK Property

Hi All

Next year 2020 I will be presenting my first tax return in Spain as a resident.

I own my own home in Spain and I am here full time. I have a UK property which I rent out.

My question is how does this work in terms of where that income is declared.

I know that I complete a self assessment with HMRC and I am a registered non resident landlord. I will NOT use up my tax free allowance as the rental income will be much less than the UK tax free allowance. So therefore there will be no tax to pay in the UK does that mean none to pay in Spain also? I work in Spain so will be completing a return anyways.

Just wondered if anyone here is similar or has any experience with this?

I will get a financial professional when the time comes just want a little heads up or some advice.

Thanks guys.

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Old Dec 22nd 2019, 3:13 am
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Default Re: Spanish Resident with UK Property

You will have to add the UK rental income to your other income and it will be taxed in Spain. If you are letting it long term as opposed to a holiday let, the allowances are very generous as you only pay tax on 40% of the income and you can claim all the normal allowances including mortgage interest if appropriate.
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Old Dec 26th 2019, 11:06 pm
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Default Re: Spanish Resident with UK Property

Originally Posted by Fred James
You will have to add the UK rental income to your other income and it will be taxed in Spain. If you are letting it long term as opposed to a holiday let, the allowances are very generous as you only pay tax on 40% of the income and you can claim all the normal allowances including mortgage interest if appropriate.

Fred, so if someone rents their house in Spain for 6 months during a calendar year they are not entitled to deductions? What exactly is the legal definition of "long term"...the amount of time per year a place is occupied?...the type and/or length of the rental contract? If you say have an apartment in Madrid and you rent it all year round using airbnb by the day or week or month; is that long term?

Last edited by m2m2012; Dec 26th 2019 at 11:33 pm.
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