Renting uk property, living in Austria

[reporter94]

I am a U.K. citizen. I’m going to be renting out my flat in the U.K. whilst living abroad as a resident in Austria.

My U.K. rental income will be my only income in the U.K. and will be below my personal allowance.

I will be in full time employment in Austria, and paying tax on this salary in Austria.

Will I be liable to pay any tax on the U.K. rental income in Austria?

 

[gworden]

@reporter94 Yes in theory, though you will have to look at the bilateral tax treaty between the UK and Austria. Generally, and this also include Austria, you are liable to pay tax on income earned abroad if you are a tax resident in the country.

 

[joltor0517]

@reporter94 The rental income will be taxable, but will be within your personal allowance so you won’t pay any tax. You do, however, have to fill in a self assessment tax return each year.

Your tenant or estate agent is legally obliged to withhold tax on your behalf unless you register as a non resident landlord and seek an exemption using HMRC form NRL1

https://www.gov.uk/government/publi...-without-deduction-of-uk-tax-individuals-nrl1

 

[reporter94]

@joltor0517 Thanks! The U.K. tax element I’m reasonably comfortable with since it will be under my personal allowance.

It’s the impact this has on my Austrian tax that I’m trying to make sense of if you have any thoughts!

 

[simona30]

@reporter94 You'd have to check if Austria has a tax agreement with the UK (I'd imagine it does). If it does, you aren't liable for tax twice. So Austria won't tax you on your UK earnings & vice versa. Anyway, I'm not sure why Austria would even be aware of your UK earnings (assuming you're PAYE in Austria) unless you go out of your way to inform them (there's no need if there's a tax agreement). For that matter, Student Loans will also automatically work out your repayments based on your UK self assessment (unless you tell them otherwise).