{"id":765,"date":"2026-05-04T14:32:45","date_gmt":"2026-05-04T14:32:45","guid":{"rendered":"https:\/\/www.ptireturns.com\/blog\/?p=765"},"modified":"2026-05-11T11:32:45","modified_gmt":"2026-05-11T11:32:45","slug":"new-brexit-property-tax-information-non-resident-owners-should-know","status":"publish","type":"post","link":"https:\/\/www.ptireturns.com\/blog\/new-brexit-property-tax-information-non-resident-owners-should-know\/","title":{"rendered":"New Brexit property tax information non-resident owners should know"},"content":{"rendered":"

British people with holiday homes abroad could face shockingly high tax bills<\/strong>, according to new claims.<\/p>

Following the official departure of the United Kingdom from the EU on 31 December, many foreign homeowners were understandably anxious about how their property would be affected.<\/p>

Not many people are aware of subtle changes around international property tax for UK residents.\u00a0<\/p>

With that in mind, we will explore the facts that non-resident homeowners should know<\/strong>.<\/p>

Will Brexit affect buying property and living abroad?<\/strong><\/h2>

This is seen as one of the biggest questions for UK citizens following Brexit.<\/p>

Agreements are currently being made between the EU and the UK that will allow UK nationals that currently reside in EU countries to remain in the country for up to five years after 1 January 2021.<\/p>

This is provided they register under a settlement scheme before this date.\u00a0<\/p>

However, throughout this five-year period, UK nationals will be permitted<\/strong> to spend 6 out of a 12-month period outside their country of residence.<\/p>

The main reason it will be harder for UK nationals to relocate and buy property in an EU<\/strong><\/a> country is that they will no longer have freedom of movement<\/strong>, and will have to abide by the immigration laws of that country.<\/p>

 <\/p>

SUBMIT YOUR NON-RESIDENT PROPERTY TAX RETURN ONLINE<\/a><\/strong><\/div> <\/div>

 <\/p>

\"Non-resident<\/figure>

Will Brexit affect my rental taxes?<\/h2>

Spain<\/h3>

Fears for those owning property in Spain<\/strong><\/a> have been cemented by property expert Robert Pullen for Blick Rothenberg, who revealed that tax rates will rise for homeowners<\/strong> from 19% in 2020 to 24%.<\/p>

He said, \u201cIn addition to the higher tax rate, the Spanish tax authorities will no longer permit any expenses to be deducted, meaning the gross income will be taxed\u201d<\/em>.<\/p>

This will make it harder for homeowners to make a profit when renting out their homes in Spain.<\/p>

? Learn how to be property tax-savvy during<\/a>\u00a0or contact PTI’ Returns’ accounting specialists in property<\/a> for assistance.<\/p>

 <\/p>

SUBMIT YOUR NON-RESIDENT PROPERTY TAX RETURN ONLINE<\/a><\/strong><\/div> <\/div>

 <\/p>

France<\/h3>

British people intent on retiring in France or purchasing a second home in France, will not be affected majorly by Brexit<\/strong>. However, there are some changes to consider.<\/p>

All non-resident property owners in France<\/strong><\/a> are required to obtain a French Tax Identification Number<\/strong><\/a>, known as a Num\u00e9ro Fiscal<\/i>, to manage their local tax obligations and filings. This 13-digit number<\/strong> is essential for paying property-related taxes, such as Taxe Fonci\u00e8re<\/i><\/strong><\/a>, and serves as the primary identifier for your account on the official French tax portal. If you do not yet have a Num\u00e9ro Fiscal<\/i>, you must apply for one through your local tax office (Service des Imp\u00f4ts des Particuliers<\/i>) to ensure your property taxes are handled correctly post-Brexit.<\/p>

Investors purchasing new-build properties in France<\/strong><\/a> can often claim a 20% VAT refund<\/strong><\/a> through the leaseback scheme<\/strong><\/a>, provided the property is rented out with specific services for at least 20 years. To successfully claim this rebate and remain compliant, owners must ensure all rental income is correctly declared<\/strong><\/a> before the french tax return for non residents deadline<\/b><\/a>, which typically falls in May or June each year. Navigating these VAT recovery rules is a highly effective way to offset acquisition costs for international landlords.<\/p>

As well as this, if you are a resident in the UK, you will have to pay a 17.2% surcharge when selling your property<\/strong>, instead of 7.5%, which is the rate for EU member states.<\/p>

\u00a0<\/div>
CLAIM YOUR FRENCH PROPERTY VAT REFUND ONLINE<\/a><\/strong><\/div> <\/div><\/div>
\u00a0<\/div>

USA<\/a><\/h3>

Because the USA is not in Europe, there should be no major changes<\/strong> to consider for non-residents and their property.<\/p>

Ireland<\/a><\/h3>

In general, a non-resident in Ireland is liable to pay tax<\/a> only on income received from Irish sources or on capital gains received from the sale of an Irish asset.<\/p>

This means that most non-residents will be subjected to the 20% standard rate of tax<\/strong>.<\/p>

In Ireland, non-resident landlords are legally required to appoint a non resident landlords collection agent<\/b><\/a> or have their tenants withhold 20% of the rent for Revenue. By appointing a collection agent<\/strong><\/a>, you ensure that the full gross rent can be collected while the agent takes responsibility for submitting the annual tax return<\/strong><\/a> on your behalf. This arrangement is essential for UK-based owners to maintain compliance with Irish tax laws while avoiding the administrative burden of tenant withholding.<\/p>

 <\/p>

APPLY FOR IRISH RENT COLLECTION SERVICE<\/a><\/strong><\/div> <\/div>

 <\/p>

Poland<\/a><\/h3>

Before 31 December 2020, British citizens were not required to obtain a permit for the acquisition of real estate in Poland or shares of companies in Poland.<\/p>

\u26a0\ufe0f This has now been reversed.\u00a0<\/strong><\/p>

This permit is issued via an administrative decision by the minister for internal affairs, if there are no objections raised by the minister for national defence in Poland.<\/p>

Even if you have a permanent residence document under EU rules, you (and your family members) have the right to request the brand new biometric residence card.<\/p>

? Have you invested in buy-to-let property in Poland<\/strong>? Here\u2019s everything you need to know about your real estate tax obligations<\/a>.<\/p>

Hungary<\/a><\/h3>

The Ministry of Finance in Hungary extended a \u201cgrace period<\/strong>\u201d until 30 June 2021<\/strong> regarding the real-time obligation to report certain \u201cself-billing invoices.\u201d<\/p>

However, there are no differences in tax on rental income for UK nationals<\/strong> since Brexit.<\/p>

? You might be interested in what is your personal income tax on rental gains in Hungary<\/a>.<\/p>

Does Brexit affect buy-to-let property investing?<\/h2>

First time buyers will more than likely be resisting the markets for a little while during these new times.<\/p>

This could lead to rent prices increasing, as attention turns away from the buying market.<\/p>

Of course, whether you are living in, visiting, or maintaining an overseas property in the EU, it will become slightly harder after the Brexit transition period.<\/p>

This is especially due to the lack of Freedom of Movement. This limits non-EU members to stay in any EU country for a maximum of 90 days<\/strong>.<\/p>

? This has led many non-resident landlords to think about their residency, with some even choosing to become foreign residents.<\/p>

If you are considering investing in buy-to-let property, it is always worth keeping an eye on the market as well as factor in your residency.<\/p>

\"Buy-to-let<\/figure>

Capital Gains tax<\/h2>

In France<\/span><\/strong>, an immediate practical implication is the requirement to appoint a French tax representative when selling a property<\/strong>.<\/p>

Currently, the seller of French property who is domiciled in the European Union may use the same procedures as French residents.\u00a0<\/p>

\u26a0\ufe0fSellers who are a resident of a non-EU country are required to appoint a French tax representative based in France.\u00a0<\/p>

Since the representative must take full responsibility for the computation and filing of the gain, the seller of the property will be directed to a professional representation company that has received permanent accreditation from the tax authorities.\u00a0<\/p>

In Spain<\/span><\/strong>, those aged over 65, who have lived in Spanish property for at least three years, will still be able to claim the equivalent of a main residence relief. This relief provides full exemption from capital gains tax on a disposal<\/strong>.<\/p>

For those under 65, the exemption from capital gains tax can only be claimed if they acquire a new home within the EU or EEA.\u202f<\/p>

In Germany, non-resident property owners are generally subject to a capital gains tax rate<\/strong><\/a> of 25% plus a solidarity surcharge, totaling approximately 26.375%. However, a significant exemption exists if you hold the property for more than ten years, after which the sale is typically tax-free. If the property was used exclusively as your personal residence for the year of the sale and the two preceding years, you may also qualify for an exemption regardless of the holding period.<\/p>

It is important to note that since Brexit, UK residents no longer benefit from certain EU-specific tax advantages, though the primary ten-year rule remains a pillar of German real estate investment<\/strong><\/a>. To ensure compliance and optimize your tax position regarding <\/span>property tax in Germany<\/span><\/b><\/a>, consulting with a specialist is recommended to navigate the specific deductions available for acquisition<\/strong><\/a> and improvement costs.<\/p>

 <\/p>

FILE YOUR GERMAN RENTAL INCOME TAX RETURN<\/a><\/strong><\/div> <\/div>

 <\/p>

For non-resident owners of U.S. property<\/strong><\/a>, capital gains tax<\/strong><\/a> is generally governed by the Foreign Investment in Real Property Tax Act (FIRPTA)<\/strong>, which typically requires a mandatory withholding of 15% of the gross sales price at the time of transfer. The actual tax liability is calculated based on the net gain, with long-term rates usually ranging from 15% to 20% depending on income levels, provided the property was held for more than one year.<\/p>

While U.S. citizens may benefit from a primary residence exclusion of up to $250,000, non-residents rarely qualify for this exemption unless they meet strict substantial presence tests. Additionally, since the UK is now a “third country” post-Brexit, it is vital to review the US-UK Tax Treaty to ensure you are claiming appropriate credits<\/strong><\/a> and avoiding double taxation on your returns. Because these regulations involve complex filings and potential refunds of withheld amounts, seeking professional guidance is essential for UK-based investors<\/strong><\/a>.<\/p>

 <\/p>

FILE YOUR NON-RESIDENT PROPERTY TAX RETURN ONLINE<\/a><\/strong><\/div> <\/div>

 <\/p>

\"Real<\/figure>

Does my residency status matter?<\/h2>

Knowing your residency status is very important when filing international property tax returns<\/strong>.<\/p>

In most European countries, non-residents are taxed only on their earnings from sources within the country.\u00a0<\/p>

This essentially means that if you are considered a non-resident, you will not have to pay on your worldwide income<\/strong>.<\/p>

In general, in EU countries, you will be considered a non-resident if you spend less than 183 days a year<\/strong> within the country.<\/p>

Property Tax International<\/a> can help you figure out your residency status!<\/p>

Are there changes to double taxation agreements after Brexit?<\/h2>

? Double taxation agreements are arrangements set up between two countries to help you pay a reduced rate of tax.<\/p>

For example, if you are a UK resident with property in France<\/strong>, you can avail of double taxation agreements and claim tax relief<\/strong>.<\/p>

The double tax agreement between the UK and France remains in place, even after Brexit.<\/p>

So, if you receive foreign income, you will still only be taxed in your country of residence.<\/p>

Similarly, Spain, Ireland, Poland, and Hungary\u2019s double tax agreement remains in place with the UK.<\/p>

Due to the fact that the UK and US\u2019s double tax agreement is not based on the EU, their arrangement remains in place.<\/p>


SUBMIT YOUR PROPERTY TAX RETURN ONLINE<\/a><\/strong><\/div> <\/div><\/div>
\u00a0<\/div> <\/div>

Who can help me with my property tax return?<\/h2>

Property Tax International<\/a><\/strong>\u2019s trusted tax experts will provide quality, efficient, and reliable tax service – removing the hassle, uncertainty and time associated with arranging your tax affairs.<\/p>

We are up to date with all tax changes regarding Brexit, meaning you can rest assured you will be tax compliant when filing an online property tax return<\/strong>.<\/p>

We filed over 322,000 international property tax returns in 2019 alone in countries such as: France<\/span><\/strong>, Germany<\/span><\/strong>, Ireland<\/span><\/strong>, Hungary<\/span><\/strong>, Poland<\/span><\/strong>, Spain<\/span><\/strong>, The UK<\/span><\/strong>, and the USA<\/span><\/strong>.<\/p>

Here are just some of the reasons why our clients choose Property Tax International (PTI Returns)<\/strong>:<\/p>