# UK non-resident landlord and Spanish taxes



## nanita (May 27, 2013)

Hi

Hope to get a bit of help form experienced expats!

I am planning to rellocate to Mallorca from the UK and become a resident. I own and rent out two properties in London. I will be living off the rental income so I will not be earning any money from working in Spain. 

I also plan to but a property in Mallorca for my main residence.

I will only bring monthly income to Spain and I am not planning to keep or move any savings or pensions to Spanish institutions.

I will be doing a tax self-assessment and paying tax in the UK for the rental earnings, but from what I have read it seems I also have to do a tax declaration in Spain and because I will own property I will be liable for 24% income tax on e rents recived in the UK. I would assume this info on double taxation is incorrect.

I would be very grateful for any advice and if anyone knows which Spanish department to call to get in-depth income tax info, please let me know.


----------



## Campesina (Dec 17, 2011)

Google for 'A simple guide to income tax for residents in Spain' and click on the first link.


----------



## Aron (Apr 30, 2013)

nanita said:


> Hi
> 
> Hope to get a bit of help form experienced expats!
> 
> ...


I would suggest you take the advice of a cantable or cantador in Spain and an accountant in the UK to discuss your tax implications before you proceed with this venture.
With respect to moving money, it is beneficial to have your pension paid directly to your Spanish bank account. You will get the best rate of exchange through that method.


----------



## gus-lopez (Jan 4, 2010)

You'll also have to declare the properties , bank accounts, etc; under the 720 asset declaration law.
Any tax paid in Uk would be allowed & deducted against any spanish tax due.


----------



## 90199 (Mar 21, 2010)

Check with the Spanish tax authorities, there has been a recent change in the regulations, regarding the necessity of a submission of tax returns for foreigners, who do not have an income earned in Spain.


----------



## snikpoh (Nov 19, 2007)

Hepa said:


> Check with the Spanish tax authorities, there has been a recent change in the regulations, regarding the necessity of a submission of tax returns for foreigners, who do not have an income earned in Spain.


Really? 

I know the authorities used to (wrongly) advise that we did not have to fill one in, but have things changed again?

To the best of my knowledge, we've *always *had to fill in a tax return despite what hacienda might try and tell us.


----------



## 90199 (Mar 21, 2010)

snikpoh said:


> Really?
> 
> I know the authorities used to (wrongly) advise that we did not have to fill one in, but have things changed again?
> 
> To the best of my knowledge, we've *always *had to fill in a tax return despite what hacienda might try and tell us.


That is why I said check with the authorities, in 2012 they were instant on a nil return for 2011 and a record of all our details, however this year, only last week, it was to the contrary, the lady even showed me the highlighted new regulations and took advice from the Boss of the office regarding my return on untaxed O.A.P. and she completed a return for 2012

Had I not had untaxed income, I gained the impression that I would not have needed the visit to the Tax Office or Tributario as it is named here.

The final outcome, no tax to pay and a 7 euro rebate on the bank account.


----------



## snikpoh (Nov 19, 2007)

Hepa said:


> That is why I said check with the authorities, in 2012 they were instant on a nil return for 2011 and a record of all our details, however this year, only last week, it was to the contrary, the lady even showed me the highlighted new regulations and took advice from the Boss of the office regarding my return on untaxed O.A.P. and she completed a return for 2012
> 
> Had I not had untaxed income, I gained the impression that I would not have needed the visit to the Tax Office or Tributario as it is named here.
> 
> The final outcome, no tax to pay and a 7 euro rebate on the bank account.


Yes, we did comment on this either last year or the year before and suggested that they were wrong.

Some offices did advise wrongly that we did not have to submit a return.

Those that took our advise benefited by being able to get health care etc. Those that did not, are now struggling under the new health rules.

I have checked and there are no new changes in this regard. Local offices often say something different and one just has to insist!


----------



## 90199 (Mar 21, 2010)

snikpoh said:


> Yes, we did comment on this either last year or the year before and suggested that they were wrong.
> 
> Some offices did advise wrongly that we did not have to submit a return.
> 
> ...


Yes, but this is now, and there are new regulations.


----------



## nanita (May 27, 2013)

Hi All

Many thanks for your replies. I have spoken to the UK tax office and, from what they explained, I will file a tax return & pay my taxes in the UK. Then I will need to file a return in Spain, and provided I have no income from that country, then my tax bill will be nil. If I have Spanish income then that income will be taxed in Spain.

Next week I will visit Mallorca and pop down the tax office and discuss with them. I'll post further once I am back.


----------



## nikkisizer (Aug 20, 2011)

Hi nanita,

In most circumstances you will still be entitled to claim the UK personal allowance when not UK resident which can be deducted from the profits generated from your UK rental business.


----------

