Paying tax on foreign rental income

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Macstuff

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Sorry if this question has been asked already - I did a quick search and couldn't find any info....

I have a rental property in Spain.
I want to declare this rental income but have no clue how to do it - I am a PAYE employee here in Ireland and don't have to make a tax return, so haven't had to deal with this before.

Do I pay the tax in Ireland or Spain? Which one is going to incur the least tax liability for me?
Can I write off anything against tax? In case its relevant I receive €550 p/m and don't have any mortgage on the house. My only expenses are agents fees (10% of monthly rental) and house insurance.

Thanks for any info.
 
Going by the book, you should be submitting income tax returns in both Spain and Ireland. As a PAYE employee, you should submit a Form 12 in Ireland and should receive credit for any income tax paid in Spain under the relevant double taxation agreement.

There are different rules in different jurisdictions for calculating rental income. For example, in Portugal you don't get a deduction for mortgage interest. Agents fees and insurance should be deductible in Ireland and I suspect the same should be the case in Spain. However, you should get advice from a expert in Spanish taxation. I have seen Irish companies advertising online that offer advice in relation to the submission of Spanish/Portuguese tax returns for (say) €250 + VAT per return. That's just a casual observation and not a recommendation.
 
Macstuff said:
I want to declare this rental income but have no clue how to do it - I am a PAYE employee here in Ireland and don't have to make a tax return, so haven't had to deal with this before.

Thanks for any info.
Click to expand...

You DO have to do a tax return, as you have non-PAYE income.

Search for a Form 12 on www.revenue.ie and complete it.
 
Thanks....

Just to clarify, when I wrote "I am a PAYE employee... and dont have to make a tax return" what I meant was that in previous years I didn't have to make one.
However, I realise that this year I do, due to my foreign rental income.

Sorry for any confusion.
 
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