Spanish Property Insight › Forums › Spanish Property Forums › Property Questions & Answers › EU-citizen vs EU-resident
Tagged: Tax
- This topic has 6 replies, 4 voices, and was last updated 4 years, 5 months ago by
Mark Stücklin.
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September 21, 2016 at 11:29 am #192642
elreca
ParticipantHi,
I have seen two different interpretations of taxes for non-residents investing in property and subsequently renting out their property.
One is saying that only EU-residents can deduct costs like interest on mortgage before being taxed on rental income.
The other states that only EU-nationals can deduct costs like interest on mortgage before being taxed on rental income.
The reason I am asking is that I am a EU-national but a resident in Ghana so it makes quite a difference for the rental income I could expect from an investment.
Could you clarify?
Thanks
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September 23, 2016 at 4:58 pm #192689
Mark Stücklin
KeymasterWhat counts is citizenship / nationality, not residence.
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September 24, 2016 at 5:02 pm #192698
satprof
ParticipantMark,
Do you know if the same applies to Inheritance/Succession Tax (IHT)? I appreciate that Brexit may affect this in the future, but, under current rules, would my daughter, a UK national resident in Dubai, be treated more-or-less identically for IHT as my son (UK national and resident). I am assuming that I will be tax-resident in Catalunya on my death, with most of my assets located in Spain.
My guess would be that a non-EEA resident would be subject to the general Spanish rules rather than the more generous Catalunyan rules,
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September 26, 2016 at 3:22 pm #192703
billg
ParticipantI was advised the opposite by my accountant, and was denied all property deductions when I lived in Switzerland even though I have British citizenship, because he said I had to be resident in the EU to be eligible for the deductions and citizenship didn´t matter.
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September 26, 2016 at 5:53 pm #192705
Mark Stücklin
KeymasterYes, you are right.
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September 26, 2016 at 5:38 pm #192704
Mark Stücklin
KeymasterSorry, I have to rectify. I was wrong to say that nationality counts. It’s residence that counts. I wasn’t thinking straight. I just went back to check Raymundo’s guide to non-resident taxes and it makes it very clear.
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September 27, 2016 at 11:35 am #192712
Mark Stücklin
KeymasterSo just to clarify, if you are tax-resident in Ghana you won’t be able to deduct expenses.
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