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Income from property in UK taxed in UK and Spain

PostPosted: Mon Nov 07, 2022 12:53 pm
by EdOD
Hi again,

I own property in the UK which I let out and get an income from. Because I have a government service pension from UK (which is taxed in UK, using up my personal allowance), I have to pay tax on this rental income in UK. I have also had to pay tax on this in Spain as well.

How do I get the Spanish taxman to give me credit for the tax paid in UK - do I get a certificate, or is there a recognised standard form HMRC can issue. And how is the mismatch in financial years handled? I don't pay my UK tax until sometime after I have to pay my Spanish Tax. To date my accountant here has not been keen to tackle this, but the sums involved are worth fighting for.

I'd value Marcliff's thoughts on this - and appreciate hearing from anyone who has actually gone through this process. And if anyone knows of an Accountant who has real experience in this area, perhaps they could PM me.

TIA,

Ed

Re: Income from property in UK taxed in UK and Spain

PostPosted: Mon Nov 07, 2022 1:26 pm
by marcliff
r.

Re: Income from property in UK taxed in UK and Spain

PostPosted: Mon Nov 07, 2022 7:10 pm
by Kaz123
We pay tax in Spain for a UK rental. We declare on the UK self assessment forms but tick the box that says tax paid in Spain. Think it's on 2nd page of the tax return

Re: Income from property in UK taxed in UK and Spain

PostPosted: Tue Nov 08, 2022 7:55 am
by GnG
I had heard that this issue of paying tax in Spain for rental income in the UK was going through the Spanish courts at the moment with a view to it being knocked on the head. Hasn't anyone else heard this?

Re: Income from property in UK taxed in UK and Spain

PostPosted: Tue Nov 08, 2022 8:19 am
by Rokhsareh_s
When u do ur self assessment with HMRC. U just need to give the paperwork to ur Accountant and they know what to do and pay double.

Re: Income from property in UK taxed in UK and Spain

PostPosted: Tue Nov 08, 2022 5:02 pm
by Paulr
Like EdOD, I have a Crown (military) pension on which I pay tax at source in the UK. My wife and I also own a property in the UK which we rent out, but we put it in her name only as, until she starts taking her State and private pensions, she has no other income. I provide our tax advisors, Abaco in Torrevieja, with the annual P60 from my military pension administrators, Equinity, and my wife provides them with the her Self Assessment submission. Abaco then do the necessary, whatever that is!

Re: Income from property in UK taxed in UK and Spain

PostPosted: Wed Nov 09, 2022 10:40 am
by alanjames
Hi
thought if you are a resident in Spain, you have to declare all your income in Spain ,which includes your
pension . But you donĀ“t declare your pension income in the UK
For some strange, reason Rental income has to be declared UK and Spain. But in the UK your personal allowance
should cover this income. Therefore you should not pay any tax in the UK. Your tax consultant should be able to cofirm this

Re: Income from property in UK taxed in UK and Spain

PostPosted: Wed Nov 09, 2022 2:41 pm
by Paul M
Crown pensions are taxed in the UK, no option to include in Spanish returns!

Re: Income from property in UK taxed in UK and Spain

PostPosted: Wed Nov 09, 2022 10:27 pm
by marcliff
c

Re: Income from property in UK taxed in UK and Spain

PostPosted: Wed Nov 09, 2022 10:30 pm
by marcliff
c