Overseas Landlord Exemption UK

Living in Spain as a resident and getting an income from renting out property in the UK? Then this information might be of use to you.

LINK TO UK GOV UK WEBSITE

From our senior advisor Philip Carroll:

Basically the form allows you to apply to have rent paid gross BUT you still need to submit a self assessment form to HMRC, unless they tell you not to. If you haven’t submitted the form then the tax should be deducted by the letting agent, or if you don´t have one, by the tenant (if the rent is over €100 a week). You still need to submit a self assessment if the rent is received net.

As long as your net rent is below the personal allowance then there will be no tax to pay, but you still have to declare in Spain on your RENTA (income tax return), and whether you will pay any tax depends on you income and allowances.

Please note: The information provided is based upon our understanding of current legislation. It is not legal advice but is provided freely to enable you to be properly informed. We recommend that if you are considering taking action, you should seek professional advice.