Renting Out Property Advice

Hi Helen,

You pay non residents tax if you rent out or not.

Then you pay tax on rental income less expenses incurred during the weeks you rent out, ie management fee, community fee, repairs, website commission etc.

You don't pay tax twice.

There's a bilateral agreement between the UK and Spain.

You only pay the outstanding difference.

Best to have an accountant or gestor to do the calculation and tax form submitance.

Typical charge for that €150.

/Regards,

Chris 

Hi Chris,

Thanks 😊 Sadly, though we cannot offset anything against rental income since Brexit. Only EU citizens can offset costs on their rental income. Were classed as foreigner's (Bleedin Boris Johnson) this is what I have read anyway?

Helen

Hi, ok so you cannot claim expenses, but you can only pay tax on your rental income once, not twice.

That's got to be a big positive?

I've owned a property in Spain for a long time.

I use Abaco Advisers in Torrevieja.

They will make sure you keep the right side of the tax man here, and they are reasonably priced.

Regards,

Chris 

Huge positive Chris 😊 Fantastic thank you!

You have made my weekend! 

Have a great one too.

Helen

Not wanting to get into the Brexit debate on this post but really it was the British media that really stuck it to the people with their constant lies (where/when is this ever mentioned?).  Boris was a no-body then and sorry for him still is a no-body.  

The real question if I could ever get an answer to it would be "what did the media stand to gain by swinging the voters the way they did?"

NOT to further this conversation in this post but if anyone has an answer to this question please private message me as I would love to hear your opinion.  Just not here please as straying from the purpose of this topic is a no-no on this Forum.  Thanks.  

You will pay tax in Spain but not in the UK, as Chris has stated.

You have to obtain a short term rental licence, it cost me 100€ for the solicitor to fll the paper work in, definitely worth having an accountant do your tax.

You also have to register your guests with the local police.

I can recommend check in scan. The charge is 1€ a check in.

Easy to use and customer services talk you through the process.

Airbnb, vrbo etc charge about 15%, but once people have been, they come back direct.

You won't just cover your costs, but make a profit too.

I started renting my apartment 13 years ago.

The profits in the first 5 years covered the costs and paid for full renovations.

I can claim expenses but I am a resident, so I can't advise on that.

Good luck.

It's a bit daunting at first but it's easy.

Hi Gill, 

Thanks so much for taking the time to write. Yes, a bit daunting but sure we will get there. Rental Agent who I am liaising with has quoted 795 euros per week high season but same properties on Booking.com on for much more but she said they just don't rent out. I'm a previous rental manager in UK so a bit confused. I would need key holder and maid cleaning service as back up if I managed myself. Do you manage it yourself? Thanks Helen

Good evening Helen,

Getting a rental licence is very straightforward.

If you have a digital certificate on your computer you can apply online and get a licence number straight away.

The form is in Spanish, so it takes a while to complete, but it's free.

A digital certificate on your computer is very useful for all sorts of procedures and well worth doing.

I wouldn't go too low with your prices.

Check out what 7 nights in a hostel costs these days, and I'm sure you are offering something far superior?

Cheap prices attract the wrong business.

Good luck,

Chris 

Thank you Chris! I have no idea what a Digital Licence is. Is this what's known as a Tourist Licence? Thanks Helen