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Declaring income tax

Posted: Wed Oct 4, 2023 12:52pm
4 replies4 members subscribed
Dave 3020

Posts: 2

Location: La Cala De Mijas

Joined: 29 Jun 2023

I've just bought an apartment in La Cala and intend to rent it out. I have a Spanish accountant who calculates and pays  Spanish income tax for us however I'm aware that this income also has to be declared to HMRC in the UK even though no tax is payable in the UK. Does anyone have experience of this? Is it something you can do yourself or do you need to use the services of a tax specialist, and if so who would you recommend? All tips and advice gratefully received. 

Holaitsdavid

Posted: Thu Oct 5, 2023 5:24am

Holaitsdavid

Very helpful member

Posts: 1483

560 helpful points

Location: Mijas Costa

Joined: 30 Mar 2021

Posted: Thu Oct 5, 2023 5:24am

If you are not an EEA citizen, you’re liable for tax at a flat rate of 24% on your rental income, EU/EEA citizens 19% and only they can claim expenses including the costs of a letting agent. https://costaluzlawyers.es/blog/guide-to-taxes-on-rental-properties-in-spain/ 

You can use https://taxadora.com/non-resident-tax-modelo-210/?gclid=EAIaIQobChMI2tiLuvXdgQMV1ep3Ch1XfA3eEAAYASAAEgKBWPD_BwE

To pay Spanish Tax due, via their portal, cheaper than using Spanish accountant, they will also advise you by Email. There is a dual tax agreement with UK, so you are not taxed twice, but you still have to declare HMRC and request tax credit relief, with proof Tax paid in Spain. (Any tax due UK depends on your tax code and tax band).  

 https://www.gov.uk/hmrc-internal-manuals/property-income-manual/pim4702



Dave 3020

Posted: Thu Oct 5, 2023 9:26am

Dave 3020

Original Poster

Posts: 2

Location: La Cala De Mijas

Joined: 29 Jun 2023

Posted: Thu Oct 5, 2023 9:26am

Holaitsdavid wrote on Thu Oct 5, 2023 5:24am:

If you are not an EEA citizen, you’re liable for tax at a flat rate of 24% on your rental income, EU/EEA citizens 19% and only they can claim expenses including the costs of a letting agent. https://costaluzlawyers.es/blog/guide-to-taxes-on-rental-properties-in-spain/ 

You can use https://taxadora.com/non-resident-tax-modelo-210/?gclid=EAIaIQobChMI2tiLuvXdgQMV1ep3Ch1XfA3eEAAYASAAEgKBWPD_BwE...

...

To pay Spanish Tax due, via their portal, cheaper than using Spanish accountant, they will also advise you by Email. There is a dual tax agreement with UK, so you are not taxed twice, but you still have to declare HMRC and request tax credit relief, with proof Tax paid in Spain. (Any tax due UK depends on your tax code and tax band).  

 https://www.gov.uk/hmrc-internal-manuals/property-income-manual/pim4702



Thank you for the reply. I wasn't aware of Taxadora and will definitely give them a go so thanks for the heads up. 

The HMRC link sums up perfectly the difficulty I have. Clear as mud, numerous document codes and links that take you down a variety of rabbit holes and/or dead ends. All I want is a form that I need to complete to declare income to HMRC. Is it simple? Do I need specialist help? I don't mind either way. I'm not having a go at you by the way as I've had zero success at trying to get the answer myself and I am genuinely grateful for your response but jeez, it's frustrating. 

Holaitsdavid

Posted: Thu Oct 5, 2023 7:55pm

Holaitsdavid

Very helpful member

Posts: 1483

560 helpful points

Location: Mijas Costa

Joined: 30 Mar 2021

Posted: Thu Oct 5, 2023 7:55pm

Dave 3020 wrote on Thu Oct 5, 2023 9:26am:

Thank you for the reply. I wasn't aware of Taxadora and will definitely give them a go so thanks for the heads up. 

The HMRC link sums up perfectly the difficulty I have. Clear as mud, numerous document codes and links that take you down a variety of rabbit holes and/or dead ends. All I want is a form that I need to complete to declare income to HMRC. Is it simple? Do I need specialist help? I don't mind eithe...

...r way. I'm not having a go at you by the way as I've had zero success at trying to get the answer myself and I am genuinely grateful for your response but jeez, it's frustrating. 

"Allowable expenses should be deducted from the income, and any profit then declared to HMRC in your self-assessment return"

https://www.taxchambers.com/news/tax-on-overseas-properties-which-laws-apply/



Jagrup1

Posted: Wed Oct 11, 2023 11:53am

Posts: 1

1 helpful points

Location: Calahonda

Joined: 30 Jun 2023

Posted: Wed Oct 11, 2023 11:53am

You do need to declare the income in the UK if you are UK resident . You will pay tax in the UK but will get a tax credit for any spanish tax that is paid . You can email me at [email protected] . I am a qualified UK tax accountant . 

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