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living in Spain and tax on UK earnings
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rob.be
Posts: 19 Forumite
in Cutting tax
We are planning on moving to Spain in a few years and are wondering about tax implications.
First we have a UK property which we would like to let out rather than sell. The UK tax allowance is much more generous than Spain's, can we still pay tax on this income in the UK via self assment even though we will not be uk residents? Would setting up a limited company that own the house help? This income will provide around 50% of our personal income.
It is very expensive in Spain to be self employed due to large monthly NI contributions. We hope to have UK derived income from a couple of sources. Can I again set up a UK limited company and be a paid employee just paying normal Spanish income tax without the large NI bill?
Rob
First we have a UK property which we would like to let out rather than sell. The UK tax allowance is much more generous than Spain's, can we still pay tax on this income in the UK via self assment even though we will not be uk residents? Would setting up a limited company that own the house help? This income will provide around 50% of our personal income.
It is very expensive in Spain to be self employed due to large monthly NI contributions. We hope to have UK derived income from a couple of sources. Can I again set up a UK limited company and be a paid employee just paying normal Spanish income tax without the large NI bill?
Rob
0
Comments
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information here on the rental income when you live overseas
https://forums.moneysavingexpert.com/discussion/1377883
you will need an agent in the UK0 -
Thanks for that information. Being a non-resident landlord means I will not get any personal allowance and will pay tax on 100% of profits from what I can see ? At least i know where I stand now.
Rob0 -
Thanks for that information. Being a non-resident landlord means I will not get any personal allowance and will pay tax on 100% of profits from what I can see ? At least i know where I stand now.
Rob
I think you had better check that out a bit more. My son was a non-resident landlord for the last 2 tax years and received the full UK personal allowance.0 -
jem, I think there is a change coming, others will know more but it IS a change so what's been true for your son in the past might not be true in the future.I think you had better check that out a bit more. My son was a non-resident landlord for the last 2 tax years and received the full UK personal allowance.Signature removed for peace of mind0 -
jem, I think there is a change coming, others will know more but it IS a change so what's been true for your son in the past might not be true in the future.
No I would agree totally with that. He's not a landlord now having sold up to buy in Canada. Last tax return for 2014/15 gave him his full allowance but I know there were changes afoot - just don't know in what way.0 -
The government have decided not to proceed with restricting the personal allowance for non residents at present but still consider there is a case for it.
http://www.ukbudget.com/2014-as-measures/restricting-entitlement-to-the-personal-allowance-for-non-residents.aspx0
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