Split tax or double?

[Leigh]

We are hoping to rent a property in Spain for a year while my partner takes a sabbatical from work. While we are away we will let out our family home and this will be our only source of income. As the house is in joint names, will the tax liability be split between us so that we can use both our personal allowances? As we will have to register as residents in Spain for our year, this will make us liable to income tax in Spain on "world wide income". Do we pay any tax liability on the property rental income to the UK government or Spanish government or to both?

Many thanks in advance.

[Taxbar]

Dear Leigh,

You will pay Uk withoding tax at 22% on the rental income and SPanish tax only if your Spanish liability is higher.

Look at the article in my section of this website by Jonathan Miller a Spanish tax expert.

UK & International tax law under information on the right of this page.

Daniel M Feingold
Barrister-at-law (NP)
Strategic Tax Planning
International & UK Tax Consultants
 
Treen House 72 Park Road,
Prestwich Manchester M25 OFA
E-mail:sedrate@easynet.co.uk