Renting : tax limits

[Geoff]

The latest newsletter from Winkworths, now called Algarve Home Sales, says " "If rental income is below €10,000 per year then this amount will be tax free until it is exceeded."

I am wondering if this is correct...our agents say the 10k limit only applies to IVA/VAT and that tax is payable on rental income below £10k, on the new basis from Jan 2015 (23% of 15% of total income if memory serves me right).

Anyone got a definitive answer though please? Mr Google doesn't really help!

[Bruce Wallis]

Geoff....you need to get a local accountant!!
Then you should get the answers you need to this and your other financial qurstions

[Geoff]

.you need to get a local accountant!!

As above, I have one, but there is conflicting advice, hence wondered if anyone knew a definitive answer ; it appears not.

[RichardHenshall]

I think that Winkworth have muddled IVA and IRS thresholds, as you suspect. However, even if it's untaxed it doesn't necessarily mean in needn't be declared ...

For those of us who are non-resident (& declare income properly), the end result is probably the same whether it's taxed or not.

[Geoff]

However, even if it's untaxed it doesn't necessarily mean in needn't be declared ...

For those of us who are non-resident (& declare income properly), the end result is probably the same whether it's taxed or not.

As indeed we do.....what you don't pay in Portuguese income tax, you pay HMRC instead...