Renting out property for holidays

Richards1234 · by **Richards1234** » Sat Jan 24, 2015 4:10 pm

We have recently bought a villa and also have a house in France, we are trying to sell the house in France, because we would prefer to live here. But the French house could take a long time to sell so we were thinking of holiday lets for the Spanish villa but have been told you have to pay tax, if we say let it for 700 a week what would we have to pay and if we didn't rent it we presume we have to pay tax anyway. Can someone advise us please

scubydoo · by **scubydoo** » Sat Jan 24, 2015 6:20 pm

Hi you need to speak to a professional it totally depends on your circumstances, don't mess about talk to some one who knows the law or you could fall foul of it and it could cost more than you think as there are new laws regarding rental if you search the site you will find more information but you will need to pay for advice hope all goes well.

Jan · by **Jan** » Sat Jan 24, 2015 8:33 pm

Richards1234 wrote:We have recently bought a villa and also have a house in France, we are trying to sell the house in France, because we would prefer to live here. But the French house could take a long time to sell so we were thinking of holiday lets for the Spanish villa but have been told you have to pay tax, if we say let it for 700 a week what would we have to pay and if we didn't rent it we presume we have to pay tax anyway. Can someone advise us please

Hi,
Some good advice from Scubydoo above - I don't know what happens in France but it's a good idea to get a Fiscal representative in Spain to sort out any tax for you and you can employ them on an annual basis for a reasonable annual fee. They take the worry out of any Spanish taxes you need to pay and keep everything legal for you. I wouldn't be without one and I am Non-Resident with a holiday home and don't rent out!

To answer your question, yes you do have to pay taxes whether you rent out or not but there is obviously extra tax that has to be calculated based on your income from renting out.

There is lots of advice on Fiscal representatives (Solicitors/ Abagado's) on this forum - There's one topic here but I'm sure you can find more by searching on the forum and hopefully get more advice too from this topic - Click on this one to read what people say :
Solicitors - Retain for a fee on an annual basis?

Jan

marcliff · by **marcliff** » Sat Jan 24, 2015 10:30 pm

If you don't rent and stay as a non-resident, you pay an annual tax based on where you live and the value of your property. For a 3 bed house we were paying approximately 80 euro each a year for this non-resident tax but that was 4 years ago so I don't know how up to date those figures are.
If you rent your property, you will pay a flat rate of 24.75% on rental income. If you are a UK citizen you should declare this on your UK tax return. Any tax paid in UK is then deducted from what you owe in Spain.
As scubydoo says, get a fiscal rep as they will know what expenses and allowances you can claim.

Renting out property for holidays