More Brexit implications

Having just carried out some necessary maintenance/improvements to my holiday property, my abogado informs me that, as a result of Brexit, I cannot offset the cost against my rental tax ( now increased from 19% to 24% ). Are other property owners aware of this ?

I didn't think maintenance costs etc had ever been deductible, but yes, I believe the tax rate has gone up to 24%

I've never understood how renting furnished holiday property in Spain is cost effective. Profits are so small, they often get used up on maintenance, repairs and replacements.

Sage wrote:I've never understood how renting furnished holiday property in Spain is cost effective. Profits are so small, they often get used up on maintenance, repairs and replacements.

Sorry but if you have right properties it can very lucrative.

polop wrote:

Sage wrote:I've never understood how renting furnished holiday property in Spain is cost effective. Profits are so small, they often get used up on maintenance, repairs and replacements.

Sorry but if you have right properties it can very lucrative.

Agreed.
It's a far better return than having money in the bank.

Surely the 24% tax applies to ALL renters irrespective of blaming brexit

It's gone up from 19-to 24% since brexit

Is that only for UK renters or for everybody who rents their property out?

It's for all non-EU (except Norwegian) owners, so for 2021 that includes UK tax residents. From this year on I believe no deductions are allowed whereas in the past certain costs such as IBI, utilities and invoiced expenses were allowable pro-rata.

I believe it is 19% tax rate for holiday home renters from the EU and 24% for those who live outside the EU which is why it now applies to UK homeowners who rent their properties out. It's been like this for a while and isn't due to Brexit other than the UK is no longer in the EU.

Paul Uden beat me to it