Offsetting mortgage against tax

[jude]

Greetings to all from sunny devon, UK! I have recently bought a second property in Spain and have a Spanish mortgage on it. So far I have only used it for my personal use but wondered if anyone knows if I can offset the mortgage interest against rental income should I choose to rent it out in the future.
Great site by the way, so good to know that most people have the same problems as I do, I thought I was alone!, have only just discovered the site whilst browsing after midnight, the only time I seem to get any peace!. I have some holiday rentals in UK and the newly aquired Spanish villa near Torrevieja, would love to hear from anyone especially if you are near Torrevieja and renting out, Jude

[Fraise]

Hi Jude, welcome ! I think Ros has a place in Torrevieja that she rents out so I expect she'll be answering for herself soon !! Happy web browsing !!!

[Big Sis..]

Your Correct on both points Fraise Welcome to the madhouse[and ark] Jude

Also Reddevil[alan] has one.

Where abouts is yours Jude

[reddevil]

Hi Jude,

Its good to see more Torreviejans on the forum. Ros is certainly making her fingers smaller by all the typing she has done recently!!!

As far as I know, it is not possible to offset mortgage interest against rental income (like it is with UK property). But if you find out differently, then please do let us know.

I've seen your Exmouth website, but do you have a Torre website too?

Cheers.

[Partridge]

Hi Reddevil

From what research I have read I believe it is correct that you cannot offset mortgage against rental income.

[roxytoo]

hmmmmm

I have rented for three years and have been told (by an ex-boyfriend who happens to be a tax inspector and an friend) that I can offset the mortgage interest against rental income which I have done! My accountant agrees! (she does it now for me as it got too compilcated!!)

This year she has also offset one set of flights and car hire to 'inspect the property' at least once year

you can also take either 10% off for wear and tear or forego that and claim for items that break down but you can't do both and once you have started claiming one you can't change to the other (does that make sense?? It is Friday night!!!)

So yes I think you can offset the interest


jude just to edit as just realised you are talking about a spanish mortgage rather than an english one, I am talking about an english one.........

[Partridge]

Found some info that says you can offset mortgage against Spanish wealth tax.

[Big Sis..]

Hi Slightly different subject,

Because of the high death tax[for want of a better]
people who have have bought jointly in Spain need to make provision in case one partner dies.

As there are high taxes that need paying and the house cant be sold to pay them.So you have to find the money first.

Just to let some of the newcomers be aware of this as it has recently happened to a friend of mine!!!!!

[jude]

Great to come back from a weekend away and have all your replies and it makes interesting reading! My house is very near Quesada on the new urbanization just before there. No body seems to know yet what it is called, some say Dom Pepe others La Marabou and I usually say near Consum cos that seems to be the biggest landmark! I haven't started advertising the villa yet and don't have a website, one because I have been going back and forth over the summer and secondly because I haven't really had time, lastly not sure if I want to go down that route yet, wouldn't mind a long let for a while just to keep things ticking over till I have time to give it my attention. I will try and find out more about the interest offsetting as I'm not sure it matters where the money has come from to buy the property so Meishka you may be correct. I know that the advantages of holiday letting in the UK are huge and I think they apply to second homes anywhere...but I will swat up on it and come back to you all when I know more.
Anyway for the moment I will say thanks again and nice to make new friends, I'm going to check out some of your websites now and would love to hear more from you.....going away to think up a witty line for my profile but think Ros has taken the best one!

[jude]

Fraise, alright if I adapt your profile line and say 'The road to my Villa is always under construction'? Seems more appropriate!
Only joking, love spain and the cranes

[roxytoo]

Hi Jude! We shopped in Consum last month! So we are nearly neighbours!!

[Big Sis..]

Hi Jude

Thanks for that but cant take the credit Im afraid as it was My friend Lorna who coined it.[my skill was knicking it from her]

Please keep in contact I have a friend with a place in Quesada
We arent far way in the far end of Torrevieja nr La Mata.

[Mouse]

Hi there!

all I can add to the excellent advice is that you get yourself a good Gestor - they will handle all your tax affairs and advice what you can and can't do.
BTW - I can also confirm that you can offset your rental against you mortgage - but lots of people don't declare their rental income, so you may want to weigh up which is more beneficial!!

Mouse
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