- This topic has 7 replies, 3 voices, and was last updated 17 years, 3 months ago by
.
-
Posts
-
-
-
-
-
@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 -
@Melosine wrote:
Also wear and tear. Redecorating. Advertising. etc
Keep all the bills.
MelosineThank you Melosine,
How well informed are you? I would love to know more on this topic.
sean thomas -
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
-
-
@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.
-
- You must be logged in to reply to this topic.
