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What taxes and dues do I pay in the UK and Spain (Gran Canaria) for renting accommodation in Spain?
hayleigh_g
Posts: 3 Newbie
We are looking to rent an apartment in Gran Canaria (Spain), I just wanted to find out what the costs involved would be for this. Would I be liable for tax in both Spain and the UK? More info would be appreciated.
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hayleigh_g said:We are looking to rent an apartment in Gran Canaria (Spain), I just wanted to find out what the costs involved would be for this. Would I be liable for tax in both Spain and the UK? More info would be appreciated.
Do you mean you are renting out an apartment that you own in Spain, ie you are a landlord receiving rental income?
The answer will depend on whether you are UK- or Spanish-resident for tax (or even somewhere else entirely). I'm assuming you are in the UK as you're asking this on a UK board, but that could change year to year depending on how much time you spend in Spain (or elsewhere) yourself. You would need an accountant or tax adviser to check this for you.
*If* you are UK resident, and receiving rental income from an apartment you own in Spain, the UK-Spain double tax treaty says that this is taxable in Spain.
You will *also* be subject to tax in the UK as all of your worldwide income is taxable here. However you might be able to get a credit for some or all of the Spanish tax paid to reduce the UK tax payable. That might mean there is nothing extra to pay in the UK, but might not.
That is as much as anyone can really tell you without knowing your exact circumstances. Find a real-life adviser as otherwise this could get very expensive if you get it wrong.0 -
Thank you for this information @gingercordial.
We are based in the UK and live here permanently, we only travel to Spain for holidays.
We haven't started renting it yet, as we have only just bought it but wanted to gather all the information before starting.0 -
Consider getting an accountant who is aware of both systems. It can be complex and you do not want to be caught out.
Why not ask some expats for recommendations for an accountant/tax advisor"It is prudent when shopping for something important, not to limit yourself to Pound land/Estate Agents"
G_M/ Bowlhead99 RIP1 -
So you are letting an apartment, not renting it.No free lunch, and no free laptop
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