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bigduckontax, Accountant
Category: Tax
Satisfied Customers: 5175
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I've worked for a UK institution for over ten years, first

Customer Question

I've worked for a UK institution for over ten years, first from my home in Spain, and five years ago I moved to the UK. I have regular deductions as an employee and never did a manual tax declaration because the system keeps deductions automatically updated. But a couple of years ago I've bought a small apartment in my home town in Spain for 100,000 EUR from savings and two small inheritances. I stay in this apartment whenever I'm in Spain. When I'm not there I rent it out on AirBnB. I first tried it, it works well, it now contributes some income. I realize I should declare the income and pay taxes, but I don't know where. In Spain or in the UK?
Submitted: 9 months ago.
Category: Tax
Expert:  bigduckontax replied 9 months ago.

Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question.

Rentals are invariably taxed in country of origin so you will have to declare to the Spanish tax authorities. The rentals will also be taxed in the UK. However, under the Double Taxation Convention between the UK and Spain any Spanish taxes paid will be allowed as a tax credit against the UK liability. The Convention precludes the same income stream being taxed in both jurisdiction. It does not protect you from differences in rates of taxation.

I do hope that you have found my reply of assistance.