# Taxation of UK rental income in Spain



## pr2hy (Aug 13, 2015)

Hi all

As a Spanish resident, I will be declaring my UK buy to let properties as per the new laws. 
If I file a UK tax return will I be liable to any income tax in Spain? 

Kind Regards,
hratch


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## Horlics (Sep 27, 2011)

What are the new laws on declaring UK BTLs?

In answer to the question, I believe you will pay only in the UK.


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## pr2hy (Aug 13, 2015)

By the new laws I just meant having to declare worldwide assets.. Ok many thanks for reply


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## xabiaxica (Jun 23, 2009)

pr2hy said:


> By the new laws I just meant having to declare worldwide assets.. Ok many thanks for reply


declaring worldwide _assets_ is not the same as paying tax on worldwide _income


_you will have to declare the income, however, but depending upon the dual tax agreement, you wouldn't pay the same tax twice


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## jimenato (Nov 21, 2009)

I believe that you have to pay the difference between the UK tax and Spanish tax if the Spanish tax works out higher.

Incidentally it has always been necessary to declare UK rent income in Spain - the asset declaration hasn't changed that.


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## pr2hy (Aug 13, 2015)

Got it, thanks a lot


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## pr2hy (Aug 13, 2015)

Thanks Jimenato. 'I believe that you have to pay the difference between the UK tax and Spanish tax if the Spanish tax works out higher.' In the case that UK return is showing a loss and no tax is due, is it safe to assume that no tax will be due in Spain? Thanks in advance. pr2hy


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## snikpoh (Nov 19, 2007)

As you have to declare ANY income (and any tax paid) it's all about what other income you have and therefore what tax you have to pay here.


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## xabiaxica (Jun 23, 2009)

pr2hy said:


> Thanks Jimenato. 'I believe that you have to pay the difference between the UK tax and Spanish tax if the Spanish tax works out higher.' In the case that UK return is showing a loss and no tax is due, is it safe to assume that no tax will be due in Spain? Thanks in advance. pr2hy


no it isn't safe to assume that at all, I'm afraid

it depends how it's calculated in Spain


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## pr2hy (Aug 13, 2015)

0k thanks


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## Horlics (Sep 27, 2011)

I don't think I've seen a tax thread that's resulted in a definite answer!

Upshot is, if you have one or a couple of BTLs you'll pay more or less what you would in the UK alone, that's to say, it won't be a material impact on your lifestyle. 

If it works out a bit extra, call it the sunshine tax and upwardly suck it 

If you're a BTL baron with dozens or hundreds of properties the impact could be huge. But then you'd be paying a tax specialist for advice and not relying on us, surely


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## jimenato (Nov 21, 2009)

jimenato said:


> ...
> Incidentally it has always been necessary to declare UK rent income in Spain - the asset declaration hasn't changed that.


... I think that is one reason why some expats took fright when the 720 came in - they had never declared UK income and the declaration of the properties and other assets would have made them potentially liable to back taxes and non-payment penalties.

I know of people who abandoned Spain because of that and there are many (many!) who are still in Spain but simply keeping their heads down and hoping they don't get spotted.


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## baldilocks (Mar 7, 2010)

Horlics said:


> I don't think I've seen a tax thread that's resulted in a definite answer!
> 
> Upshot is, if you have one or a couple of BTLs you'll pay more or less what you would in the UK alone, that's to say, it won't be a material impact on your lifestyle.
> 
> ...


And probably paying no tax at all or even getting a whopping great refund.


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