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How Much Tax on Rented Property

Tax Law

Antonio Flores Vila

24th of October 1999

Q. I want to rent out my Spanish property, and I live in the UK. Where should I pay tax on the income I derive?

Patrick McCormick
Sussex

    A. If you live in the UK, then you are not resident in Spain for tax purposes. This means you are liable for Spanish non-resident income tax of 25% . This is declared once a year.
    The tax you pay is calculated on the gross benefit you obtain, without possible deduction, other than the income withheld by the letting company or real estate-agent when they pay you. Don´t forget you are now a business yourself, and therefore you will also have to add on 16% VAT to the rent, which shall be lodged with ?Hacienda? (Inland Revenue). Seek legal advice before you set up any business.



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