If you are planning to buy a rental home, or you're thinking about what to do with one you have just acquired, this is the place for any questions about starting out in the rentals business.
ok...I admit it...I am a totally clueless American when it comes to VAT and European Tax issues!
I did a search for "VAT" on the site...and...well...it just confused me even more *laugh* Could someone explain? Pretty please?
In the US, you must collect State Sales tax and pay it to the state where the vacation rental is located. Is it the same in Europe? My home is in Italy...at the moment anyway, my guest are non-Europeans....do I need to collect VAT or another form of sales tax on the weekly rental?
Thanks!
(sorry for ALL the questiond lately! just trying to get things sorted and ready!
hahahahaha. I think I would be very greatful/lucky to clear 6k so I am probably in the clear! one less thing for me to stress/obsess about for the minute
Ah vat and tax issues..........enter tax accountants. We own a number of properties in the UK which are rentals + our property's in France.
I would advise you that you seek out a good accountant in your 'country of residence' who has a good knowledge of European taxtion to assist you with your tax returns.
It is quite amazing what a good accountant can off set; to your benefit, to reduce your 'vat/tax' bills; money well spend IMO.
johnel wrote:I would advise you that you seek out a good accountant in your 'country of residence' who has a good knowledge of European taxtion to assist you with your tax returns.
Helen
Hi Helen, I'm not sure if you saw my posting on the Spain posts? One of the problems is I'm getting conflicting advice as to where I should declare my income. I live in UK, apartment in Spain. The spanish say I should declare in spain and the English say I should declare in UK I would love tohear from you or any other members as to what I should do.
HelenB wrote:You need to declare in both UK and Spain. Your UK tax form allows you to deduct the Spanish tax already paid, so you will be no worse off.
I think I'm getting myself in a terrible muddle here
Are you saying that I should find myself a Spanish accountant and also an English accountant so they can both fill in tax returns for me?
You should be able to find someone in the UK (or your country of residence) who can do both. Maybe our Spanish property owners can advisw who.
Sorry, it is just the way it is, you own property in Spain, therefore you are a taxpayer, regardless of your country of residence. Spain has a double tax treaty with the UK, therefore any Spanish tax paid can be deducted from your UK tax bill.
Ali..you normally declare your 'world wide' income in the country of residence...if you are resident in the UK then you file a tax return in the UK a normal.
As you own a property in Spain (even though you are not resident)..you still have to get an accountant (in Spain) to fill in a non-resident tax declaration...to put it in layman terms, as you have a property abroad...this involves a declaration of 'wealth tax' and 'a non-resident tax'...all calculations of tax are made in relation with the purchase of your property as a 'non-resident' (i.e. whether you have a mortgage or bought the property outright). This needs to be done annually in Spain as you would do in the UK.
so I am probably in the clear! one less thing for me to stress/obsess about for the minute 
I would love tohear from you or any other members as to what I should do.