rental tax

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This topic contains 7 replies, has 3 voices, and was last updated by Profile photo of Anonymous Anonymous 11 years, 1 month ago.

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  • #51189
    Profile photo of Anonymous
    Anonymous
    Participant

    I would like to here from anyone who rents out a property and pays tax on the income. My question is, is expenses i.e agents fees, property maintenance tax deductable.

  • #58598
    Profile photo of Melosine
    Melosine
    Participant

    Also wear and tear. Redecorating. Advertising. etc
    Keep all the bills.
    Melosine

  • #58600
    Profile photo of Anonymous
    Anonymous
    Participant

    Yes, but only if you are a tax-paying resident of Spain. If you are non-resident nothing – nada – is deductable and you pay tax at 25% on the gross.

    Mark

  • #58722
    Profile photo of Anonymous
    Anonymous
    Participant

    @mark wrote:

    Yes, but only if you are a tax-paying resident of Spain. If you are non-resident nothing – nada – is deductable and you pay tax at 25% on the gross.

    Mark

    Thank you Mark,
    I really am struggling with this one. There are thousands of Brits who own property and rent out, where is the incentive for them to do the right thing. If they declare the rental income they are TAX PAYERS. Also what about all the taxes they paid during the buying process, etc,etc.
    Sean thomas

  • #58723
    Profile photo of Anonymous
    Anonymous
    Participant

    @melosine wrote:

    Also wear and tear. Redecorating. Advertising. etc
    Keep all the bills.
    Melosine

    Thank you Melosine,
    How well informed are you? I would love to know more on this topic.
    sean thomas

  • #58729
    Profile photo of Anonymous
    Anonymous
    Participant

    Well, the short answer is there isn’t much incentive to ‘do the right thing’. When you look at the numbers it’s hardly worthwhile renting out your property in Spain if you do it legally and above board. 25% tax on gross rent, no deductions allowed, then marketing and rental management costs, which can come to 40% of the gross, then wear and tear, etc, etc. The numbers only stack up if your property rents very well (30 plus weeks a year), but with the rental market in the doldrums this is unlikely for most owners. All of which explains why many people opt for renting on a cash basis to family and friends, informally and paying no tax or management fees. Then at least you get some cash in and can trust your ‘clients’ not to trash the property. Never forget that most strangers don’t really give a damn about your property.

    Long-term rentals are just as bad. Rental yields are puny, and the law favours tenants’ interests over those of the landlords. Meanwhile the Spanish government wonders why the rental market in Spain is so feeble and so many properties stand empty! But instead of making it easier and more rewarding for landlords to rent out their properties, the government is going to provide certain groups of tenants – young people, immigrants, and so on – with government subsidies to help pay rents. That of course will do little to address the real problem.

    Mark

  • #59103
    Profile photo of Anonymous
    Anonymous
    Participant

    Is it possible to delare your rental income from Spain in the UK?

  • #59390
    Profile photo of Anonymous
    Anonymous
    Participant

    @anonymous wrote:

    Is it possible to delare your rental income from Spain in the UK?

    Since the rental income is in spain you should pay tax in spain and then declare this on your tax return in the UK Thereby avoiding paying twice.

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