May.05 2024

Tax outcomes of Brexit

As a result of the Brexit, as of 1 January 2021 the United Kingdom shall receive the same treatment as other countries outside the EU. Below is a list of the most relevant changes regarding the Income Tax for Non-Residents (IRNR) for private individuals.

Here is a summary of the main effects on proprietors residing in Spain:

  • As of January 2021, this tax will increase from 19% to 24%.- This rise will affect the property tax (where the proprietors do not receive an income on the property), the IRNR returns for 2021 (to be presented in 2022). Therefore, according to the information currently available, when presenting your 2020 tax returns in 2021, the new tax rate shall not yet affect your declaration, unless the legislation states otherwise at some point.
  •  In the case of income on the property (when the proprietors rent their property), the property expenses shall no longer be deductible. Therefore, the tax shall be applied directly on the income obtained, and the expenses derived from rental shall not be deductible.
  • In any case, the Tax Treaty between the United Kingdom and Spain shall be taken into consideration and shall remain valid. Its purpose is to avoid dual taxation on certain activities.
  •  This is all the relevant information available for the moment. We will keep you informed through our website and social networks. Follow us on Facebook and Instagram.
    A complete version of the text is available on the Income Tax Department web site: click here.

Remember that as of January 2021 you can make an appointment for an online meeting from our website, e-PORCEL (CLICK HERE TO ACCESS).

With our best intention to be able to clarify doubts on this matter, until March 31, 2021, the code BREXIT2021 can be used for a 10% discount for inquiries only about taxation of non-resident individuals (not valid for companies or legal entities). Valid only for a single use for virtual meeting on the e-PORCEL portal.