Tax deductions for buying/renting in Spain
Oct 22nd 2019, 4:46 pm
#1
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Joined: Oct 2019
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Tax deductions for buying/renting in Spain
Hi all - Wife and I are looking at moving to Spain and I'm in the weeds of tax planning.
It's my understanding that any tax deduction for purchasing your own home in Spain has largely been phased out as of about 2013 (or renting from 2015). However, I've seen reference to possible tax deductions still being available in some autonomous regions, but I haven't been able to validate that or find out where as of yet.
We're looking at living in the Canaries - does anyone know if there's any possible tax deduction (from self employment income) still possible there? And any other financial incentive difference between buying or renting?
Cheers all!
It's my understanding that any tax deduction for purchasing your own home in Spain has largely been phased out as of about 2013 (or renting from 2015). However, I've seen reference to possible tax deductions still being available in some autonomous regions, but I haven't been able to validate that or find out where as of yet.
We're looking at living in the Canaries - does anyone know if there's any possible tax deduction (from self employment income) still possible there? And any other financial incentive difference between buying or renting?
Cheers all!
Oct 22nd 2019, 6:07 pm
#2
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Joined: Aug 2009
Location: Costa Blanca
Posts: 3,143
Re: Tax deductions for buying/renting in Spain
I have bought several properties in Spain over the last 20 years and I am unaware of any tax deductions for buying your own home except there was tax relief on mortgages but that was phased out for new mortgages years ago.
There are some minor reductions if you are resident (and buying a main residence) on land registry fees but nothing that makes a lot of difference in the big picture.
You need to budget around 12% on top of the purchase price to cover all the taxes/expenses etc.
There was tax relief on renting but again that has been phased out although there might still be some in some regions for those who qualify which is typically under 35s.
Suggest you take professional advice in your preferred area as of course, these tax issues can be localised and do change from time to time but seldom to our benefit. Good luck.
Don't forget also that as Brits (assuming you are) we will (at some stage we presume) be from a 'third' country (ie non EU) that will probably also affect certain rights and privileges that EU membership provides.
There are some minor reductions if you are resident (and buying a main residence) on land registry fees but nothing that makes a lot of difference in the big picture.
You need to budget around 12% on top of the purchase price to cover all the taxes/expenses etc.
There was tax relief on renting but again that has been phased out although there might still be some in some regions for those who qualify which is typically under 35s.
Suggest you take professional advice in your preferred area as of course, these tax issues can be localised and do change from time to time but seldom to our benefit. Good luck.
Don't forget also that as Brits (assuming you are) we will (at some stage we presume) be from a 'third' country (ie non EU) that will probably also affect certain rights and privileges that EU membership provides.
Oct 22nd 2019, 6:10 pm
#3
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Joined: Oct 2019
Posts: 7
Re: Tax deductions for buying/renting in Spain
Thanks for the thoughts there, much appreciated.
Re: Brexit, you're correct I am British. My understanding is that providing I become a resident prior to the end of the transition period (if there is one i.e if there's a deal!), then I would be able to stay and become a permanent resident of Spain and be largely unaffected.
However, I am yet to go into the full detail of the possible pain on that - is there a good summary already somewhere of other possible implications?
Thanks again!
Re: Brexit, you're correct I am British. My understanding is that providing I become a resident prior to the end of the transition period (if there is one i.e if there's a deal!), then I would be able to stay and become a permanent resident of Spain and be largely unaffected.
However, I am yet to go into the full detail of the possible pain on that - is there a good summary already somewhere of other possible implications?
Thanks again!
Oct 22nd 2019, 6:16 pm
#4
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Joined: Aug 2009
Location: Costa Blanca
Posts: 3,143
Re: Tax deductions for buying/renting in Spain
Suggest you monitor here to keep abreast of what's going on here....
https://www.gov.uk/guidance/living-in-spain
Tax issues may not change too much - the problems COULD be for newcomers (who have not accrued rights) be access to health care, Spanish driving licences, and various other rights which are currently a 'given' but we are still in a state of flux...
https://www.gov.uk/guidance/living-in-spain
Tax issues may not change too much - the problems COULD be for newcomers (who have not accrued rights) be access to health care, Spanish driving licences, and various other rights which are currently a 'given' but we are still in a state of flux...
