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SPANISH TAX ON OWNING PROPERTY IN BRITAIN

SPANISH TAX ON OWNING PROPERTY IN BRITAIN

Old Jun 6th 2013, 5:41 pm
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Default SPANISH TAX ON OWNING PROPERTY IN BRITAIN

I have been thinking about moving to spain for quite a few years now but being very cautious there has always been something stopping me making that final move, where I absolutely love spain,, I have 3 properties in Britain and now I hear if I were to move to spain, I would have to pay taxes to them on my properties in Britain, which I already pay taxes on the rentals, so im still going the route of just long holidays in spain. Has anyone had experience of this new tax?
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Old Jun 6th 2013, 6:05 pm
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Default Re: SPANISH TAX ON OWNING PROPERTY IN BRITAIN

Massive thread a few posts below this.

'Declaring worldwide assets to Hacienda'

Everything you could ever want to know and a ton of rhetoric and witty banter as well.

Simple answer is yes you will have to declare the three properties to Hacienda if you emigrate.
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Old Jun 6th 2013, 6:07 pm
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Default Re: SPANISH TAX ON OWNING PROPERTY IN BRITAIN

It's not a new tax.

There are two taxes that may apply if you are tax resident in Spain. The first is tax on the rental income. This is taxed in the UK irrespective of residency as the income arises in the UK. You also have to pay Spanish tax as it is part of your world wide income but you can offset any UK tax against any Spanish tax. If it is a long term rental (as opposed to a holiday let) only 40% of the net rental income needs to be declared.

The other tax that may apply is the same tax that applies to holiday homes in Spain owned by non residents or second homes owned by Spanish taxpayers. It is the "Imputed Rental Income" tax. That is based, in Spain on the catastral value, multiplied by either 2% or 1.1 % depending on when the catastral value was updated.

For foreign properties there is no official value so they use a value of 50% of the original purchase price multiplied by 1.1%. The value of this imputed income is taxed at normal income tax rates.

If property is rented out for less than a year the actual rental is taxed and the imputed tax is pro rated for the period that it was not rented out.
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Old Jun 6th 2013, 6:21 pm
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Default Re: SPANISH TAX ON OWNING PROPERTY IN BRITAIN

Then there is the wealth tax. 3 properties in the UK depending on area, could put you well over the limit.
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Old Jun 6th 2013, 6:34 pm
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Default Re: SPANISH TAX ON OWNING PROPERTY IN BRITAIN

Originally Posted by jackytoo View Post
Then there is the wealth tax. 3 properties in the UK depending on area, could put you well over the limit.
Yes, I had forgotten just how expensive property is in the UK.

In Spain three investment properties would probably be below the 700k threshold.
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Old Jun 7th 2013, 6:21 am
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Default Re: SPANISH TAX ON OWNING PROPERTY IN BRITAIN

Two of the properties are in Guildford surrey which I let out as that's my income and the one I live in is in Hastings but its a 4 bed house,part of which has a separate bedsit which I also let so I think its going to be a case of keeping on with the long holidays In Spain, ive been loving spain since the 60's when l went as a teenager on holiday by coach, boat, train to Lloret de mar, my lst holiday without my parents, it was a miracle the coach didn't go down the side of the pyranees, the roads were so bad then and the farmers were ploughing their fields walking behind oxen and with what looked like a wooden plough. Cost for full board in a hotel - there were no high rise hotels then, £35 for the whole trip (2 weeks) Even in the 80's id spent 6 weeks at at time there as my friend had a lovely flat in Villa Ricos, Almeria. Everything was so cheap then, eating a 2 course meal for about £2 and wine just a few pesetas a glass. Its so different now with all the lovely roads and hospitals, the roads are better than ours, I really miss the spain of those days, I doubt the Spanish do as they were literally dirt poor, but then I miss the England I grew up in the l950's..........which is why all the kids want to dress, do their hair and live that life style now, I love gadgets and technology but I guess life was a lot simpler then lol!
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Old Jun 7th 2013, 7:20 am
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Default Re: SPANISH TAX ON OWNING PROPERTY IN BRITAIN

£35 by coach you were ripped off

1970 Mallorca with Clarksons flying Courtline £40 for 2 weeks full board.

Not Magaluf but the POSH bit Puerto Pollensa

Brandy 5 pts a glass.
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Old Jun 7th 2013, 7:41 am
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Default Re: SPANISH TAX ON OWNING PROPERTY IN BRITAIN

Originally Posted by Fredbargate View Post
£35 by coach you were ripped off

1970 Mallorca with Clarksons flying Courtline £40 for 2 weeks full board.

Not Magaluf but the POSH bit Puerto Pollensa

Brandy 5 pts a glass.
....that brandy was ace, with coke - they put in about half a pint of brandy and a splash of coke and I used to fill my suitcase going home with bottles of the stuff and gin to last me the year - in those days you could carry as much as you wanted and not have to be manhandled going through customs - they always pick on me esp when my electric toothbrush went off in my hand luggage - was very embarrassing, I think they wondered what was buzzing amongst my underpants, lol!
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Old Jun 7th 2013, 7:45 am
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Default Re: SPANISH TAX ON OWNING PROPERTY IN BRITAIN

Originally Posted by Fredbargate View Post
£35 by coach you were ripped off

1970 Mallorca with Clarksons flying Courtline £40 for 2 weeks full board.

Not Magaluf but the POSH bit Puerto Pollensa

Brandy 5 pts a glass.
found this
http://www.youtube.com/watch?v=d5-FZgOIqko
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Old Jun 7th 2013, 8:27 am
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Default Re: SPANISH TAX ON OWNING PROPERTY IN BRITAIN

ah those were the days, remember all the sombreros and straw donkeys everyone used to come home with, lol! Brings a tear to my glass eye, ha ha
http://youtu.be/yFcl6v4THcU


.....well it beats getting moribund about Spanish taxes anyway

Last edited by Jaques2go; Jun 7th 2013 at 8:30 am.
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Old Jun 7th 2013, 9:01 am
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Default Re: SPANISH TAX ON OWNING PROPERTY IN BRITAIN

Originally Posted by Jaques2go View Post
the farmers were ploughing their fields walking behind oxen and with what looked like a wooden plough.
Those were the days
Attached Thumbnails SPANISH TAX ON OWNING PROPERTY IN BRITAIN-p5264355.jpg   SPANISH TAX ON OWNING PROPERTY IN BRITAIN-p5264352.jpg  
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Old Jun 7th 2013, 9:33 am
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Default Re: SPANISH TAX ON OWNING PROPERTY IN BRITAIN

great, that guy mustv been well off, he had a horse and a seat on his plough, and I love the scooter - ive always been an accident waiting to happen on motorbikes, a few yrs back I went to the IOM round the TT course and hit a ragstone wall, I only broke my ankle and had a few cuts and bruises, was very lucky.
We do a lot of camping (in tents) when we get the weather but a few yrs ago we drove down to Valencia and stayed on a beach site near Oliva, which town I loved, esp all the sandy beaches around and the old town. We have an Alfa Spider, which only has 2 seats, so have to cram as much as we can behind seats and on the back shelf - the missus sits on the douvet but we had a wonderful time, what I love about spain is not having to go indoors at night when its cold. In England, we put on coats and sit outside the tent in true british style braving the cold but in spain, you get that warm evening breeze on your skin, the smell of wild herbs and the sound of cicadas, I just love it, so come September, it will be a month down there, possibly this year I will get a villa somewhere a little inland. We're camping in Cornwall this month as soon as I can get a break in my work commitments..........thanks for the photos = heres the tent in Dorset and the missus

[IMG][/IMG]
[IMG][/IMG]

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Old Jun 7th 2013, 9:35 am
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Default Re: SPANISH TAX ON OWNING PROPERTY IN BRITAIN

I must admit prior to buying our house in Spain I believed I had done quite a bit of research and was aware of non resident tax in Spain and have always paid that, I was aware of the term worldwide income re Spain as well. I must admit though I was not aware I would be expected to pay non residents tax on my property I keep in UK and that is another reason I doubt I will sadly ever become fisical resident in Spain. It does seem a strange thing to be honest as you are still paying all your UK taxes i.e. council tax etc ( I know it is not the same) it has been your permanent home for years and to be honest I do just find it bizzare as realy apart from the fact that you have moved to Spain it really has nothing to do with them other than being an asset when you pop your clogs if you are still Spanish resident and passing to a family member also Spanish resident. Makes you wonder why UK government haven't clicked onto this scam? or that possibly should be not clicked on yet!
To be honest although as Fred says it seems to not to be a new rule but certainly seems to have been well hidden and not adhered to.
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Old Jun 7th 2013, 9:44 am
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Default Re: SPANISH TAX ON OWNING PROPERTY IN BRITAIN

Speaking of council tax, mine is £150 a month in hastings and they only empty the bins every two weeks
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Old Jun 7th 2013, 9:52 am
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Default Re: SPANISH TAX ON OWNING PROPERTY IN BRITAIN

Originally Posted by Jaques2go View Post
Speaking of council tax, mine is £150 a month in hastings and they only empty the bins every two weeks
My council tax in Gib is £640ish a year similar to what I paid in Spain.

Both places the bins get emptied every day.
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