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Non resident income tax on holiday lets

Posted: Sun May 26, 2024 9:23am
5 replies6 members subscribed
Sjp1

Posts: 39

4 helpful points

Location: Manilva

Joined: 6 Oct 2019

Please could someone clarify. Im a uk resident with a holiday home in spain. If i rent out my home as a holiday rental i know i have to pay 24% tax (with now allowable expenses) but what happens in the uk? I know theres a double taxation agreement but when i declare it on my tax return in the uk do i then have to pay tax on the difference as i am on higher rate eg 40%? And if so then cam i claim expenses eg fuel, ibi, insurance, cleaning etc?


i cannot get clear answer from uk accountant? 

Chris 06

Posted: Sun May 26, 2024 2:07pm

Chris 06

Helpful member

Posts: 142

51 helpful points

Location: Marbella

Joined: 10 Feb 2023

Posted: Sun May 26, 2024 2:07pm

I tried using my UK accountant, he was useless.

Use an English speaking Spanish account, they know the law better than anyone else.

www.abacoadvisors.com

Holaitsdavid

Posted: Sun May 26, 2024 5:39pm

Holaitsdavid

Very helpful member

Posts: 1588

610 helpful points

Location: Mijas Costa

Joined: 30 Mar 2021

Posted: Sun May 26, 2024 5:39pm

You are not talking to the correct UK accountant, the facts are below, there is a dual tax agreement yes the facts are below,   

https://cannonchambers.co.uk/resources/blog/tax-on-overseas-property/

On the Spanish side I suggest using Taxadora to pay their tax due.    https://taxadora.com/

The guy who runs it can help with dual taxation https://www.linkedin.com/company/taxadora

Vilho Heiskanen the owner will answer your questions very rapidly by E Mail.  He is excellent see his CV below.    

 https://es.linkedin.com/in/vilho-heiskanen-13273613?original_referer=https%3A%2F%2Fwww.google.com%2F                  

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Chris 06

Posted: Sun May 26, 2024 6:10pm

Chris 06

Helpful member

Posts: 142

51 helpful points

Location: Marbella

Joined: 10 Feb 2023

Posted: Sun May 26, 2024 6:10pm

I've been using Abaco Advisors for a long time.

They were founded in 1999.

Their charges are very reasonable.

Ant91l

Posted: Wed May 29, 2024 5:44pm

Posts: 8

3 helpful points

Location: Benalmadena

Joined: 24 May 2024

Posted: Wed May 29, 2024 5:44pm

You are better no declaring your holiday home in Spain 

It gets complicated 

I am from the uk and have the same  as yourself l only declare in the uk rental and the Spanish holiday home in Spain 

The decision is yours have a good day

Patrick8

Posted: Tue Jun 18, 2024 6:53am

Posts: 73

16 helpful points

Location: Fuengirola

Joined: 15 Dec 2018

Posted: Tue Jun 18, 2024 6:53am

I know many people who have a property in Spain and rent it out, some for the odd week or two to friends/family, etc, and some who rent out a lot more as a steady income to pay the costs.

Very few, if any, get involved with declaring this income, not because they want to cheat the system but because it is an awful lot of hassle, unlike owning a caravan in the UK and renting it out to cover the ground rental, etc. Where most people would not dream of declaring it.

If you are renting to friends, family etc, I would probably just stay under the radar, if you are renting it, and openly advertising it to the general public, you may be better to go along the official channels to avoid major problems with the Spanish tax office.

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