Do I pay income tax on rental income from my UK home if renting here?

Hi there all,

I am new to the forum, and am looking to rent somewhere out here next year.  I was wondering if anyone has the same situation as me, as is renting their UK property out while moving over here?  I think my salary is in the 50% tax bracket, and I am just wondering if I have to pay 50% on the full rental income of the property, given that it would be my only property (and that I would only be renting here).  Also just wondering if I do have to pay 50% tax, if the mortgage payments on it can be offset against the rental income?  Any advice would be much appreciated.


Hi and welcome to the Forum.

Where you pay tax is generally decided by where you are domiciled.  So if you live in Holland, you will pay tax there for your worldwide income; rental income from property is generally regarded as income.  Tax can be offset if there are double-taxation agreements between 2 countries; there is an agreement in place between the UK and NL, so you won't pay income tax twice on the same income.

When you live in Holland, you are required to submit a tax declaration each year to the Belastingdienst; if you can provide proof to them that you have paid tax in the UK (P60), then they will accept that as evidence.  They will also ask you for copies of all UK Bank statements.

There is one other thing you need to consider; the agreement refers only to income tax and the Dutch have an additional social tax system which is not subject to the agreement and as I learnt to my cost, you will very much be liable to pay these on all income.

The tax-year in Holland runs from Jan to Dec and they will assess you for the whole year.  As far as I'm aware, you will not be allowed to offset Dutch tax with the rent you pay in Holland.  I'm not sure about overseas mortgage payments.  My advice would be to speak to a tax consultant in Holland.

Hope this helps.

Expat Team

Apologies for the late reply.  Thanks very much for your help.

New topic