Reporting Spanish rental income on Irish return

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Staple

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We are renting out a property in Lanzarote. For certain expenses (variable costs) we are only allowed a deduction in respect of the period of time the property is actually rented out for. When reporting on my Form 11 here, is it the same basis for calculating allowable expenses ?
 
No, you use Irish rules when calculating your rental income and expenses. If the property was available for let for the entire year then you should be able to claim a deduction for your all your variable expenses. If, for example, it was used by your family for July/August and available for rent for the rest of the year, then you should be able to claim 10/12 of the expenses. The key issue is that the property was available for rent and not necessarily rented out. There are restrictions for pre-letting expenses but I don't think you are asking about those.
 
Many thanks Dublin67 for the quick reply. That's exactly what I wanted to know.
 
Just to double check, the property was only purchased in August/September last year and was available for rent from 01 October to the end of the year. We are correct to claim 100% of our expenses during that period ?
 
I know a couple of people who have sold their Irish rentals because of the way its gone here and have bought in Spain in the last year to let through AirBnB.
I was thinking of doing the same at one stage myself maybe.
How much tax do you have to pay in Spain? As well as in Ireland? If you dont mind me asking
 
We are only really starting out ourselves with this. The Spanish tax rate on rental income is 24% based on the full rental income but only get a deduction in relation to variable expenses (utilities etc) based on the actual days rented.
VAT (Igic) of 6.5% is deemed to be included in your rental income but you can also claim input credits again based on the same calculation as for expenses.
Quarterly returns are required to be made in respect of both tax and VAT.
Regarding the Irish situation, I would assume the tax rate would be your marginal rate and presume USC also applies.
As said above, we are still learning how the process works but hope this is of some use.
 
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