# Tax...yukk



## Tiggywoo (Jan 18, 2010)

Hi
Does anyone know an English speaking Tax specialist that understands the latest UK and Portuguese tax -particulary as they relate to property in both countries?
Can you offset mortgage interest in Portugal against a rental property income?
The more we research on the internet, the more we are getting confused and it seems that a lot of the data held relates to 2011 and I believe there have been many changes since then. We aren't looking to avoid anything, we want to be compliant but it needs to be affordable so creativity and thinking outside the box would be a bonus 
Thanks to anyone who can offer any advice - we are in the East between Tavira and Altura so someone in the East would be best if possible.
TW


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## canoeman (Mar 3, 2011)

Do you mean tax on UK rental property income? not really sure exactly the question your asking?
The information is there for 2012 and also the changes for 2013 so people can plan.

If it's UK let property a simple explanation is that you declare less allowable expenses and pay tax on "profit" in UK, then declare that income and tax paid on your IRS return here, it can get slightly complicated as a Portuguese return spans 2 UK tax years. 

If your mortgage is on a Portuguese property then you claim whatever the allowances and any other allowances in the appropriate section of IRS.


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## Tiggywoo (Jan 18, 2010)

*Clarification*

Thanks for your response.
We have UK rental property and a portuguese rental property - the real question we would like to know is if mortgage interest from a mortgage held in Portugal can be deducted from rental income from a property in Portugal?
Thanks
TW


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## canoeman (Mar 3, 2011)

Are you Residents here? do I take it the Portuguese rental property is not your main Residence here?


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## Tiggywoo (Jan 18, 2010)

*Residency*

We live in a caravan while we let our property. We have been here for longer than 183 days but haven't taken residency officially.....
Thanks
TW


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## canoeman (Mar 3, 2011)

You should have done residency at 3 months no later than 4, I've sent you a PM


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## Tiggywoo (Jan 18, 2010)

Thanks - it hasn't come through yet so I will respond once it does - thanks very much


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