EU-citizen vs EU-resident


This topic contains 6 replies, has 4 voices, and was last updated by  Mark Stücklin 2 years, 11 months ago.

  • Author
  • #192642



    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?







  • #192689

    Mark Stücklin

    What counts is citizenship / nationality, not residence.

    • #192698



      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,

    • #192703


      I 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.

    • #192705

      Mark Stücklin

      Yes, you are right.

  • #192704

    Mark Stücklin

    Sorry, 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.

    Non-Resident Taxes in Spain

  • #192712

    Mark Stücklin

    So just to clarify, if you are tax-resident in Ghana you won’t be able to deduct expenses.

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