Application of double taxation agreement Spain - United Kingdom for IRNR and VAT on rent.
Taxation in the Income Tax of non-residents and in the Value Added Tax, of tax residents in the United Kingdom and that develop the activity of renting in Spain.
A. Non-Resident Income Tax.
As they are tax residents in the United Kingdom and obtain income in Spain from the rental of a property, the Agreement between the Kingdom of Spain and the United Kingdom of Great Britain and Northern Ireland to avoid double taxation and prevent tax evasion in matters of income and wealth taxes and its Protocol, done in London on 14 March 2013, hereinafter the Convention, will apply (BOE of 15 May 2014).
Article 6 of the Convention establishes:
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A professional is active in the UK and Spain
A taxpayer, resident in Spain, carries out his professional activity both in Spain and in the United Kingdom, making payments on account in both states.
They are therefore obliged to make payments on account in both states. Being a resident in Spain, he wonders whether, in the fractioned payment to be made in Spain itself, he can deduct the withholdings paid in the United Kingdom during the quarter.
Amount of the instalment
With regard to the amount of the instalment, article 110 of the Personal Income Tax Regulations, approved by Royal Decree 439/2007, of 30 March (BOE of 31 March), hereinafter RIRPF, establishes:
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