Hypothetical Question

[Bugsbunny]

Buenos Dias everyone! I'm not even sure if I'm posting this under the right topic heading as it's more of a tax thing than the law but anyway....

If I were to rent out an apartment in Spain, who do I have to declare this to? And does anyone know how much I would be likely to have to pay? Is it a % or something? Please forgive my ignorance but this is a totally new ball game to me. I'm resident in the UK.

Thanks in advance

[Beachcomber]

To do things by the book, firstly you need to register the property with the tourist authorities as tourist accommodation.

You then have to submit a tax return on form 210 paying 24% of the actual rental income at the end of every month during with the property is rented out.

At the end of the year you have to calculate the number of days that the property was not rented out and pay non-resident notional income tax pro rata.

[Bugsbunny]

Hi Beachcomber - are these Spanish taxes and the Spanish tourist board? If so, do I have to pay taxes and register with the UK tourist board too?

[Beachcomber]

Yes, Spanish taxes and Spanish tourist authorities. Sorry, I know nothing about UK taxes. I think you would probably have to declare the income to HMRC and balance that against what you pay in Spain.

You would not need to register with the UK tourist board.

[julian]

"To do things by the book, firstly you need to register the property with the tourist authorities as tourist accommodation"

is that only if you are renting it weekly, or for short periods? if it is rented long term to a working spaniard for example is it still neccessary to register it with the tourist authorities?

[Beachcomber]

I don't know. I don't think the Junta does either. Whenever you ask them about registering a rental property you just go round in never ending circles.

I think Fincalospinos has done it but I believe he has a commercial letting company.

Most people I know just pay their annual non-resident tax and hope for the best but if you advertise on a property rental web site you stand a remote chance of being found out.

[Bugsbunny]

I inherited property last year and have spent a large chunk of my inheritance refurbishing and making it good again. It would be great to have it for personal use only but I don't think that's practical because I still have to pay the bills - water, community, electric etc (although the electric still haven't taken a DD payment for over 2 months now) and I'm on quite a poor wage in the UK. I've toyed with the idea of using an online site for advertising but I think at the moment it sounds like too much and I'm paying my non residence tax so perhaps I'll risk it for now and rent to friends only...

Thanks as always for your advice

[katy]

Although Beachy's advice is correct I don't know anyone who actually does it. Not that I am advocating cheating the spanish tax authorities of course

[Bugsbunny]

Really Katy? Are the Spanish authorities not hot on this sort of thing?

[julian]

I havn´t registered with the "tourist authorities", but I do declare the rental income.

[Beachcomber]

Yes, same here, but it's easier to declare the rental income as a fiscal resident because it is included in the annual resident tax return and allowances and expenses can be deducted.