Rent income from o/s property

remorseless

hi there,

I am a UK resident for tax, how do I get get tax on rent income from an overseas property based in the EU?
Can I get the rent taxed in the EU country rather than getting taxed in the UK?

Thank you!

Thrugelmir

You need to comply with the tax laws of the country in which the income is earnt. Failure to do so could prove expensive.

remorseless

thanks Thrugelmir! I thought that because I am a UK resident for tax, I had to pay tax on the rental income in the UK rather than in the country where is the property located to avoid double tax...
Rental income won't even 'touch' the UK - so I guess it makes sense.

if that's the case though, it's even better because the UK tax rate would be way higher!!

bowlhead99

Thrugelmir didn't say you don't have to pay UK tax.

You asked how you got taxed on an overseas property and whether it would be taxed in the EU country. He said you have to comply with the rules of that country and pay all the local taxes you need to, which is entirely true.

However, if you're UK resident you (generally) need to declare and pay tax on your worldwide income. So this involves working out the profits of your overseas property business - properly, like you would if it was a UK property business - and getting it onto your tax return. If you have suffered overseas taxes or expenses you may be able to claim reliefs and deductions and allowances but that doesn't overrule the general principle that UK residents pay tax on their worldwide income.

Of course if you're not domiciled in the UK and are only paying tax on the remittance basis on funds you bring into the UK, the situation is different, but I expect if you were not UK domiciled you would know it....