taxes

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fincafern
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taxes

Post by fincafern »

Has anybody information about 24% tax on gross income starting beginning of next year for Brits with property in Spain ? No tax relief on expenses, only for EU nationals ?
costa-brava
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Post by costa-brava »

Hello Fincafern
I am UK citizen resident in Spain for over 30 years and now only have our own dwelling in Spain, nothing rented. So my opinion is based on what I have read not on direct experience.
If you are resident here the 24% on gross property income does not apply. However if you are not resident and not a member of the EEC, the income you gain from renting out on holiday lets is taxed at 24% on the gross amount you earn. You cannot claim any expenses for cleaning, local taxes, community charges, utilities etc.
In addition there is a presumed capital gain for the weeks your property is not rented. This is calculated according to the rateable value of your property but for easy reckoning it's 1% of the current value of the property. This means that for 2020, if you have zero bookings that materialise, for a property worth 300,000 euros, there will be a presumed gain of €3000 so the tax will be €750.
For bookings that come from commission sites like ABNB, it is not 100% clear if "gross" means the actual cash you receive or the total cost to the renter. As I understand it, this varies according to how your gestor/assessor/accountant has interpreted the law.
Also, from previous posts here in LMH, there seems to be some trouble over whether you earn the money in the week of the booking or in the week you get the money into your bank account. Again this seems to vary according to the person doing your tax return.
If you receive payment into a UK bank then the GBP have to be calculated in Euros. This ought to be done by taking the official rate published by the Bank of Spain on the last working day of December in the tax year.
costa-brava
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Post by costa-brava »

Hello again
You are still showing your "rentabitity" page in LMH. They seem to have gone walkabout!
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CSE
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Post by CSE »

There in answer to your question only assumptions about what is going to happen.
Maybe you will still be treated like a EU citizen maybe you will not be.
Two ways of finding out ask your gestoría or read the daily (not Sunday) items published in the Boletín Oficial del Estado.
Details maybe written in the press but please check with one of the above two. The press are notoriously bad at giving accurate news. They are very good at second guessing things more than write facts.
Never try to out-stubborn your guests.
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roxytoo
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Post by roxytoo »

I've already been advised by my gestor that I will have to pay 24% tax with no allowable expenses once we are fully out of Brexit
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fincafern
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Post by fincafern »

Thanks for your comments.
I had already queried this with my gestor, but am still waiting for his reply.
If I hear anything from him, I will update here.
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Post by costa-brava »

Roxytoo wrote:
"I've already been advised by my gestor that I will have to pay 24% tax with no allowable expenses once we are fully out of Brexit"
When will that date be? Will the 24% apply to the 2020 tax return that you do in 2021 or will it be the next year? Or are you going to have a silly of part EU and part Non EU?
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roxytoo
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Post by roxytoo »

Its not relevant for 2020, it starts Jan 2021
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