Last Updated on September 21, 2023 by Kristina Valcheva
Are you a non-resident landlord with property overseas?
The last thing you want to do this year is pay a big tax bill after having an inconsistent year for renting out your property. So, in this article, we will highlight how you can file your income tax return online, who can help you, and how to minimise your property tax bill.
We know it is difficult to travel at the moment with lockdowns throughout the world, so our tax experts here at PTI Returns can file your property tax return for you, online.
We believe that no one should overpay property tax, so here are our tips on how you can save on your property tax bill.
- In this article:
- How can non-resident landlords reduce their property tax bill?
- What expenses can non-resident landlords claim?
- How should you organise your documents?
- Do you need to notify the local tax office that your property has not been rented out?
- What if you miss the deadline for paying your property income tax?
- Can you file property tax and documents online and not travel during the lockdown?
- How can I get help with property taxes?
How can non-resident landlords reduce their property tax bill?
Non-resident landlords can reduce their property tax bill in a number of different ways. Such as, claiming the depreciation of their property, making use of available tax bands (such as their partners), limiting home improvements and looking for exemptions that they may qualify for.
Check out this article for more information on how to reduce your property tax bill.
You are not expected to know or understand everything about a tricky subject like tax. Our tax experts, here at PTI Returns, can help you. They specialise in property tax returns and they will ensure your tax bill is minimised.
What tax expenses can non-resident landlords claim?
All non-resident landlords should try to be tax-efficient by claiming everything that they are entitled to. Landlord expenses add up very quickly, so we advise that you speak with your tax advisor to see what exactly you are entitled to claim.
All expenses for repairs, maintenance, and furniture for your property are deductible. One point to note is that if your landlord insurance reimburses you for some of these costs, you should include it on your tax return as income.
We recommend that you keep all receipts for any expenses safe, as they are needed when filing your tax return. Often, when all expenses are claimed on your tax return you can significantly reduce your tax bill.
Some rental expenses that you could be entitled to claim are:
- Repairs, maintenance, furniture
- Property maintenance expenses
- House cleaning expenses
- General running expenses – electricity, gas, water, TV & internet
- Property advertisement costs
- Property Insurance
- Real estate letting agency fees
- Facility charges
- Travel costs to and from the rental property
- Advisory fees, such as legal and accountancy
- Mortgage interest and bank charges
- Local taxes paid
- Avail of international tax agreements
- Depreciate the value of the rental building and of the furniture from usage and more
If you have a mortgage for your property, the interest on your loan will be the biggest deductible expense. You can also deduct expenses for the interest paid on loans you have borrowed for home improvements and interest paid on credit card payments for your rental property.
PTI Returns can help you determine which expenses you are entitled to claim for your rental property.
How should you organise your documents?
It’s so important to keep any documents that you will need when filing your tax return safe and in order! Having the key documents at hand when filing your tax return will make the process so much easier! You will need documents such as statements for management charges, local taxes paid, advertising costs, maintenance costs etc.
If you are having trouble finding any documents you need, PTI Returns provides a tax documents retrieval service, so we can help you find them.
Do you need to notify the local tax office that your property has not been rented out?
You are probably wondering whether you need to make the local tax office aware that your property has not been rented out.
PTI Returns can help you determine whether you need to notify the local tax office that your property has not been rented out. To overcome language barriers, PTI Returns can also help you by contacting the local tax office to make them aware that your property has not been rented out, if it is required in the tax jurisdiction for your property.
What if you miss the deadline for paying your property income tax?
All countries have different tax deadlines and implications for missed tax deadlines. We will detail the rental income tax return deadlines below for each separate country that we specialise in.
France
In France, the tax year coincides with the calendar year – from 1 January to 31 December.
The tax deadline for leaseback, furnished properties, and business income and VAT returns is 18 May 2023. If you are earning income from short-term letting of a property in France, you will be required to file your French tax return on 25 May.
If you miss the tax deadline in France, your tax bill will jump by 10%, and it will continue to go up the longer you delay in filing your return. For business tax returns, the penalty for late filing is €300 per return and can go up to €1,500. So it’s definitely worth making sure that you file on time.
File your French Tax Return here
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Germany
As a non-resident German property owner, you are obliged to file a non-resident German property tax return. Non-residents are subject to a personal levy on income derived from their German property.
The tax deadline for Germany for the 2022 tax return is October 2, 2023 (without a tax advisor), and 31 July 2023 (if you apply with a tax advisor). The German tax deadline for 2023, is 2 September 2024 (without a tax advisor) and 31 May 2025 (with a tax advisor).
Failure to comply with the deadlines can result in fines and penalties.
File your German Tax Return here
UK
The tax year in the UK runs from 6 April to 5 April the following year.
The normal filing date for a return filed online is 31 January after the end of the tax year.
Penalties will apply if you miss the tax deadline. You will get a penalty of £100 if your tax return is up to 3 months late and you will pay more the later you leave filing your tax return.
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Ireland
As a non-resident landlord, you are obliged to declare any Irish rental property, file a tax return for any income earned and pay rental income tax for which you are liable.
You are required to file and pay your income tax return by 31 October each year following the year of assessment. The deadline is extended to 16 Nov. It is for taxpayers who file 2022 Form 11 income tax return.
Penalties and interest will apply for late filing and payment of liability. If you miss the 31 October deadline for filing your tax return, you could be charged interest for each day you go over, as well as a surcharge.
File your Irish Tax Return here
Spain
The tax year in Spain runs from 1 January to 31 December the following year.
If you rent out your property, you must pay Spanish tax on rental income.
In Spain, quarterly tax returns are required to be filed by the 20th of the month following the end of the quarter, ie. for the 1st quarter – 20 April, 2nd quarter – 20 July, 3rd quarter – 20 October, and 4th quarter – 20 January.
The tax deadline in Spain for filing for deemed rent is 24 December 2023 for Income Tax Returns.
Fines and penalties will be issued for missed filing deadlines.
File your Spanish Tax Return here
Poland
The tax deadline in Poland for filing your Polish tax return and paying your tax bill is 2 May 2023.
Fines and penalties may be issued for missed deadlines or late payments.
File your Polish Tax Return here
Hungary
The tax year in Hungary runs from 1 January to 31 December the following year.
The tax deadline for filing an income tax return in Hungary is 22 May 2023.
Individuals that file a declaration to the Hungarian tax office stating a reasonable excuse why a return cannot be filed can be granted an extended deadline to 20 November.
There is a late payment penalty on overdue tax payments if they are made after the deadline.
File your Hungarian Tax Return here
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USA
The tax year in the USA runs from 1 January to 31 December the following year.
You are subject to US income tax if you have a US source of income. This includes income from US assets, such as rental property.
Nonresidents must file income tax returns on time in order to be permitted to claim deductions.
The income tax deadline in the USA is 18 April 2023.
Penalties will apply for missed tax deadlines. For each month that your tax return is late, there is a penalty of 5% of your unpaid taxes, for up to 5 months. Beyond this, higher penalties apply.
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In conclusion
As you can see, there are many implications for missing the tax deadlines in every tax jurisdiction. To ensure you don’t get hit by these penalties, always have your documents in order and submit your return on time.
If you engage in the services of a tax agent, like PTI Returns, the deadline for filing a tax return is often automatically extended.
Can you file property tax and documents online and not travel during the lockdown?
Good news for you! You don’t need to travel to file your overseas landlord taxes!
PTI Returns can take care of all tax return preparation and filing for you. Our tax experts will take care of all of the messy tax paperwork for you and file your property tax return online.
How can I get help with property taxes?
At Property Tax International (PTI Returns), our team of tax experts specialise in property tax returns for overseas property investors.
PTI Returns will keep you updated throughout the process and communicate directly with the relevant tax office on your behalf.
Why PTI Returns?
- We offer a comprehensive worldwide tax return service ensuring our clients are compliant in each relevant tax jurisdiction.
- We provide a tax documents retrieval service.
- Our team of tax experts can answer any of your international property tax-related questions.
- Multilingual support via phone and email
- We filed over 322,000 tax returns last year.
