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Ask Your Own Question, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 5113
Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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Madam, I am Portuguese and live in the UK for

Customer Question

Dear Sir/Madam,
I am Portuguese and live in the UK for almost 12 years (no gap on residence for more than 3 months). I am also self-employed and a final year medical student.
I have recently rented my flat in Portugal (since February) for which I will be paying taxes in April. The income from the flat offsets the mortgage and the gain is around 300 Eur a month.
How can I declare this income avoiding double tributation?
Kind Regards,
Submitted: 2 years ago.
Category: Tax
Expert: replied 2 years ago.
Thank you for your question. Normally, as a UK resident for tax purposes you are taxed on your worldwide income and gains arising in a tax year.You say, the rental income from a let property in Portugal generates a profit of around Euro 300 per month. You have let this property since Feb 2015.You should declare the rental income less expenses including mortgage interest only on your tax return to UK authorities and pay tax on this profit. You claim foreign tax credit relief against tax suffered in Portugal on this rental income by completing supplementary pages SA106-Foreign. Under Double Tax Agreement between UK and Portugal income from the source is not taxed twice. If you are already not registered for self assessment then you should first register for self assessment. You say you are self employed so I presume that you are already registered for SA and filing tax returns. I hope this is helpful and answers your question. If you have any other questions, please ask me before you rate my service – I’ll be happy to respond.