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View Full Version : Other What happens to our property in UK once we move to Tenerife?



Topacciolo
23-07-2013, 19:00
Hi, i don´t know if this is the right section but i´m sure the moderators will move me if i´m wrong...

I moved here to Tenerife in November 2012 and i left my house in UK (that i´m still paying the mortgage for...) rented out to a friend. We signed a private contract.

When we moved we did make a lot a lot of planning and a lot of preparation but we kind of focus only in to Tenerife... we didn´t work out exactly how our property in UK could be effected once we moved.
I kind of thought that because my rent was going to cover my mortgage and my insurances and repair costs i didn´t have to declare anything to the tax man because i was not physically get any money in my pocket.
Now i start to read around and i noticed that you should declare it.
While I was searching the web and i noticed that if you have a property in UK but you are not resident and you don´t live in UK for at list 6months you can apply for a Non Resident Tax No Tax deduction by filling up a NRL1 form.
I´m sure may of you guys moved here leaving a property back home so i was wondering if someone could help with some info or with the name of a person in Tenerife that could deal with this kind of cases.
I lived in London for over 13 years, i always worked as an employee and always pay my taxes. I love the country and I just don´t want to have trouble in UK.
thanks

Goldenmaniac
23-07-2013, 19:50
Any tax due on property in Europe is payable in the member state where the property is located - so you will deal with Revenue & Customs in the UK - there is some useful info here http://search2.hmrc.gov.uk/kb5/hmrc/forms/view.page?record=OSWvtKIMh2c&formId=3187.
With regard to Spain you will declare the income received (if any) on your anual declaración de la renta and that would then be offset by the tax paid in the UK (if any) under double impositions agreements.
From what you have said your first declaración de la renta will be next Apr/May/June 2014 which will cover the natural year Jan to December 2013. (in 2012 you were not in Spain long enough to be regarded as fiscally resident (Oct/Nov/Dec) http://www.agenciatributaria.es/AEAT.internet/Inicio_en_GB/English/Non_residents/Non_resident_Income_Tax/Non_resident_Income_Tax/Residency_issues/Individual_resident_in_Spain.shtml

junglejim
24-07-2013, 10:27
I had a look at this new guideline / test , you can check if you are classed as resident in UK or not - very confusing!
http://www.hmrc.gov.uk/international/rdr3.pdf