Undeclared income from rental of property in the EU

Hi! I am a UK resident and I purchased a property in a EU country which I let starting from 2018. I was advised at the time that all property-related taxes (including the income from rental) needed to be paid in the EU country in which the property was located (as UK past part of the EU at the time) and that, because of this, there was no need to also declare this income in the UK. Fast forward to 2024, I have now become aware that this is not entirely correct and that I must also declare this income in the UK through the Self-assessment process. I am now taking steps to correct this error the best I can. In light of this, I have a few questions: 1. I am now registering for Self-assessment and there are two boxes: 'Date started receiving taxable foreign income' and 'Date untaxed income received from'. Which box do I go with in my case? Also, do I put in here the date when I started receiving the income from the rental of my foreign property, or will I do this as part of the main Self-Assessment? 2. Given that I haven't been aware of these obligations until now, can you advise what kind of penalties, if any at all, will apply to not having declared this income since 2018? Many thanks in advance for your answer.

Hi,
Please use the box 'date started receiving the foreign income' and put the date that you received your first foreign income from property payment.
You may not owe any tax at all as usually the tax that you paid in the country that this property is situated in can usually be declared on your return & offset against any potential UK tax owing.  
For further guidance:
The Let Property Campaign
Thank you.

Thank you for your reply. To calculate the foreign income that I need to declare for each of the past financial years which foreign exchange rate should I use? Do I use today’s exchange rate for all sums or do I use an average exchange rate corresponding to each of the years I need to declare the foreign income for? Many thanks in advance for your reply.

Hi,

The exchange rate that should be used should reflect the date the income was paid. 

Thank you.

Hello, I ask for my mom, my mom is in her retirement. Her only income is from her pension outside the UK (she was a civil servant in Hong Kong but retired in 2016) and interests from the bank. I think she should tick the box "I'm getting taxable foreign income of £300 or more" and for the "Date started receiving taxable foreign income", should I put 06/04/2023 which is the beginning of the current tax year? thank you very much! Best regards Cindy

Hi,
Your mother's Hong Kong Civil Service pension is not taxable in the UK and should not be included in a tax return. However, article 11 states that interest is taxable in the UK: 
2010 Hong Kong-UK DTA
The interest should be declared for each tax year in which it arises.
Thank you.

Sent non resident landlord paperwork in September 22nd 2024 ..phoned beginning of Oct said being processed...just phoned today told no record of application ..sent by signed for post know it was recieved ..In Portugal now need this what to do very difficult to communicate as only phone no e mails please advise changed address maybe in post ??

Hi ,
 

It is a specialist section that deal with these and you should telephone +44 300 322 9433. If you call the normal helpline, our systems wont the show post as being received . Thank you .