Date posted: 3rd Feb 2021
Now that the UK has left the EU, some UK taxpayers will start to see additional foreign tax costs. One example is where UK residents own holiday homes in EU countries that they rent out for part of the year.
Owners of EU rental properties may now be required to pay more tax in those countries, having previously benefited from a lower rate of tax for EU nationals.
Those renting out Spanish properties, for example, will see the rate of tax they pay in Spain increase from 19% to 24%. There would be double tax credit relief for the overseas tax suffered against the UK tax liability on the rental income, but those who pay UK tax at 20% will see their overall tax bill increase as a result. The UK leaving the EU may also have the effect of increasing the amount of capital taxes and social security taxes payable by property owners too.
If you need advice on overseas taxes, we can introduce you to firms in the appropriate country, due to our membership of Kreston International. If you need advice or an introduction, please give us a call.
Read more articles from our February 2021 tax news below:
- Land Remediation Relief – are you overlooking this valuable corporate tax relief?
- The Budget day is approaching
- Scam alert – “HMRC” phone calls and texts
- Higher taxes for EU property owners
- IR35 – back on the agenda
- Paying your personal tax bill
- Foreign income – have you declared it to HMRC?
- Hybrid cars – 100% allowance coming to an end
Read more below: