LONG TERM RENTAL TAXATION

Post reply   Start new thread
:: New - Old :: Old - New

Pages: 1 |

Forum home :: Latest threads :: Search forums
The Comments
04 Jul 2012 15:42 by HERBY Star rating. 33 posts Send private message

HI

SIMPLE QUESTION.WHAT WOULD BE MY TAXATION LIABILITY IF

I WAS TO RENT LONG TERM, I.E 9 TO 11 MONTHS , THEN RETURN

TO U.K FOR LETS SAY 4 MONTHS THEN RETURN  SUCCESSIVE

TIMES TO LONG TERM RENTALS EACH INTERRUPTED WITH STAYS

IN THE  U.K. I STRESS NO WORK OR PURCHASE OF PROPERTY INVOLVED

SIMPLY RESTING AND PUTTING MY FEET UP AND ENJOY THE SUNSHINE.

THANKS IN ADVANCE FOR ANY ANSWERS I MIGHT GET. I AM READING ALL

SORTS OF STORIES.

 

P.S I AM WELL AWARE THAT THE TAXMAN IS ALWAYS READY TO EXTRACT

ANY HARD EARNED CASH WHEREVER YOU LIVE

 

 





Like 0      
04 Jul 2012 16:37 by johnzx Star rating in Spain. 5241 posts Send private message

 
 
Herby
 
Sorry but your question(s) appear somewhat vague.
 
If you were more specific, I am sure you would get answers, which address the questions you really have.
 
That said: If you spend a total of 183 days in Spain you are considered to be Tax resident by the Spanish tax authorities
 
If you spend 3 months PERMANENLTY in Spain you are obliged to register on EU Citizen’s Register. Once you have done that, you are considered to be tax resident by the Spanish tax authorities.
 
As tax resident you are in general obliged to declare your worldwide assets.  
 
Spain has double taxation agreements with many countries.   The provisions  differ from country to county.
 
The agreement with the UK means, that with the exception of a pension as a former government employee or from rental income in UK, one is obliged to pay tax on all other income in Spain.





Like 0      
04 Jul 2012 17:04 by GuyT Star rating. 487 posts Send private message

 john, suppose one is a sole trader with a business in the uk -  the owner is semi-retired, has a couple of staff who run the business, and he spends six months or so a year in spain, say during the quieter months of business. do all these business owners submit their accounts to the spanish taxman? one wonders how they (the spanish) can ever examine the tax returns, they would need huge teams of english speaking inspectors countrywide - my accountant is forever writing back and forth with the uk taxman justifying write downs, capital expenditures, etc. it's hard to figure out how the spanish taxman could keep a grip on, say, the casual payroll of a bangladeshi takeaway in bradford.

 





Like 0      
04 Jul 2012 17:22 by johnzx Star rating in Spain. 5241 posts Send private message

Sorry Guy,   I was trying to answer Herby's question, not write a paper on taxation in general.

I thought it would be too obvious to mention that, as Herby was on the face of it, talking about taxation on  personal income and stressed, "No work. was invloved,"  that my answer was on taxation of individuals who are tax resident, (I said, As tax resident you are obliged to declare your worldwide assets).

 


This message was last edited by johnzx on 04/07/2012.



Like 0      
04 Jul 2012 17:48 by GuyT Star rating. 487 posts Send private message

i wonder if anyone else can answer? if you're a sole trader then your trading statement is your income statement for tax purposes. so if the curry merchant submits his accounts to the spanish authority then it's up to them to accept or challenge them. i was just wondering how they would do so. i wonder what the local uk tax office would say if one told them one spent 3 months in spain and were now going to submit all future tax returns to spain. anyone know?





Like 0      
04 Jul 2012 18:33 by HERBY Star rating. 33 posts Send private message

HI,

JOHN, U SAY IF U SPEND 183 DAYS OR MORE OR JUST 3 CONTINIOUS

MONTHS IN SPAIN U HAVE TO DECLARE YOURSELF TO THE AUTHORITIES,

BUT HOW DO THE SPANISH AUTHORITIES REALLY KNOW HOW MUCH TIME

U SPENT IN SPAIN , BECAUSE EVERYTIME I HAVE BEEN U JUST GET WAVED

THROUGH THE CUSTOMS WITH NO COMPUTER CHECKS DONE THAT WOULD

TALLY UP TIME SPENT.I PERSONALY THINK ALL THIS IS DONE ON TRUST.I KNOW

SOME PEOPLE WHO HAVE VILLAS IN SPAIN AND OBVIOUSLY GO THERE MANY

TIMES A YEAR ,THEY TELL MY THEY JUST WAVE PASSPORTS AND WHIZZ THROUGH

CUSTOMS.NO QUESTIONS ASKED.

 

 





Like 0      
04 Jul 2012 19:17 by johnzx Star rating in Spain. 5241 posts Send private message

Herby,  some people rob banks and may be even get away with it,  but there are a lot of guys in prison.

As for how do they know.  

 I am sure you are not naive enough to think that the authorities are stupid.  Electric and water bills, neighbours, credit cards, bank transactions, money changers, etc  are the more obvious ways to detect who is doing what and when.

 





Like 0      

Pages: 1 |

Post reply    Start new thread


Previous Threads

Tarragona???? - 1 posts
Royal Air Forces Association Dinner Dance - 0 posts
Pool problem - 3 posts
moving from builders supply to meters - 0 posts
Gazebo for sale - 1 posts
community pool rules regarding life guards etc - 2 posts
Gibraltar tobacco prices 2012 - 3 posts
Fantasy Homes By The Sea - 1 posts
Jet 2 sharp practice - 3 posts
Jet 2 sharp practice - 0 posts
Gelish nail salon in Benijofar? - 13 posts
Hellish nail salon in Benijofar? - 3 posts
Spanish Airport Tax Increases from 1st July - 22 posts
The need for more effective monitoring systems and enforceable regulatory controls - 21 posts
car swap or px - 0 posts
car swap or px - 0 posts
sky costa blanca - 1 posts
Telefonica murcia region - 1 posts
UK driving licence in France & Spain - 2 posts
Wall Insulating in Spain - 36 posts
presedent - 31 posts
Mercedes C180 English headlights - 1 posts
Double Posts Appearing On Blogs - 3 posts
Latest mortgage rates? - 5 posts
buying online - 3 posts

Number of posts in this thread: 7

DISCLAIMER:  All opinions posted on these message boards are the opinion solely of the poster and do not necessarily reflect the opinion of Eye on Spain, its servants or agents.


1 |
Our Weekly Email Digest
Name:  
Email:
   


This site uses cookies. By continuing to browse you are agreeing to our use of cookies. More information here. x