Owning a rental in Spain and another in the UK sounds simple until the first tax season. The rent arrives in two currencies, the two countries count the year differently, and each one expects its own return. Most landlords in this position end up with a spreadsheet that only they understand, rebuilt every spring.
In short: keep each property in its own currency, record every payment and cost against the property it belongs to, and keep a calendar for each country's tax year. Then both returns, and your own overview, come from the same record instead of being rebuilt by hand.
What makes Spain and the UK awkward together
Three things don't line up:
- Two currencies. Spanish rent and costs are in euros; UK rent and costs are in pounds. Converting everything into one currency as you go hides what really happened and changes with every exchange rate.
- Two tax years. Spain's tax year is the calendar year, January to December. The UK tax year runs from 6 April to 5 April. The same payment can fall into different "years" depending on which country is asking.
- Two tax authorities. Each country taxes the rental income from property located there, and the country where you live usually taxes it too, with relief under the UK–Spain double taxation agreement for tax already paid.
None of this is unusual. It just needs a record that keeps the two sides apart while still showing you the whole picture.
If you live in the UK and rent out in Spain
This is the most common case: a flat on the Costa del Sol or in Madrid, let while you live in Britain.
- Spain expects a non-resident income tax return for the rental income, filed on Modelo 210. Since Brexit, UK residents are treated as non-EU residents, which generally means less favourable rules on deducting expenses than EU residents get.
- Local costs keep running in euros: the annual IBI property tax, community fees (comunidad), insurance, repairs and the agency's commission.
- The UK taxes UK residents on their worldwide income, so the Spanish rent also goes on your Self Assessment, usually with credit for the Spanish tax already paid.
What you need from your records: every rent payment and every cost in euros, by date, for the Spanish return; and the same figures organised by the UK tax year for Self Assessment.
If you live in Spain and rent out in the UK
The reverse case: you moved to Spain and kept a flat in the UK.
- The UK runs the Non-Resident Landlord Scheme: your letting agent, or your tenant if there is no agent, must deduct basic-rate tax from the rent unless HMRC has approved you to receive it gross. You can apply for approval with form NRL1. You still file a UK return for the rental income.
- Spain taxes Spanish residents on worldwide income, so the UK rent goes on your annual declaración de la renta, with credit for UK tax paid.
- If your assets abroad are large enough, Spain may also require the informative Modelo 720 declaration of foreign assets.
What you need from your records: rent and costs in pounds by UK tax year, any tax the agent withheld, and the same figures by calendar year for the Spanish return.
Tax rules change and personal situations differ, so treat this as a map of what to keep track of, not as tax advice. A cross-border adviser can confirm what applies to you.
The record that makes both returns easy
Whichever direction you're in, the record you need is the same:
| Keep for each property | Why it matters |
|---|---|
| Currency (EUR or GBP) | Amounts stay exactly as paid, with no conversion drift |
| Lease and tenant | Rent due dates, deposit and renewal dates in one place |
| Every rent payment, dated | Each country can slice it by its own tax year |
| Every cost, with its invoice | Deductions you can actually justify |
| Taxes withheld or paid | Credit in the other country under the treaty |
| Local tax dates (IBI, returns) | Nothing is paid late from abroad |
The key habit: record the money in the currency it was actually paid in. Convert only when you need a combined view, and keep the rate you used visible. That way your Spanish figures stay in euros, your UK figures stay in pounds, and nothing has to be untangled at year-end.
A simple monthly routine
- Check which rent has arrived in each country and chase anything overdue.
- Log new costs against the right property, with the invoice attached.
- Look at what local tax or fee falls due in the next month.
- Glance at the combined view: occupancy, cash and open repairs in both countries.
Ten minutes a month beats two weekends every spring.
Where PropFlow fits
PropFlow was built for exactly this: properties in more than one country, each in its own currency. You record rent, leases, costs and documents once, against the right property. It keeps a calendar of each country's property taxes and deadlines and emails you before they fall due, and it exports the figures your adviser needs in each country. It does not calculate your tax or file returns; it keeps the record those returns are built from.
If you live abroad and rent out the place you left behind, the guide for expat landlords covers that side in more detail.
PropFlow is free for two properties, which covers one in Spain and one in the UK. Create your free portfolio or compare the plans.