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Posted Fri, 15 Nov 2024 09:09:36 GMT by shake fitzjohns
I am a uk tax resident with a property in Spain that I rent out for short periods in the summer while I am in the UK. I pay a flat rate of 24% tax for the rental income in Spain which I declare on my self assessment return in the UK. I am under the minimum threshold allowance for the previous tax year so have no tax to pay in the UK. Can I claim a refund for the tax paid in Spain and if so how do I go about claiming it back? Thank you
Posted Tue, 19 Nov 2024 09:25:39 GMT by HMRC Admin 17 Response

Hi ,
 
No. 

The tax treaty between the UK and Spain, gives both countries the right to tax your Spanish rental income,
with Spain having the first option of taxation. 

This means that you are able to claim a tax credit in the UK for tax paid in Spain. 

As you have no income tax liability in the UK, no credit for the tax paid in Spain is due, as no UK tax is due. 

Any overpaid tax would have to be claimed in Spain.

Thank you .

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