Tax break for Spanish property holiday lets

Those with a property in Spain who let it out as a holiday home could be eligible for a tax break, but have limited time to take advantage of it.

The government has announced that the furnished holiday lettings relief will be repealed, meaning those with interests in the Spanish property market must act before July 31st.

Leonie Kerswill, a tax partner at PriceWaterhouseCoopers, says that those with a property in Spain which made a loss on rent should explore their options as they could benefit from a tax repayment.

"Anyone with an overseas holiday home in the European economic area that's been rented out should check whether the property qualifies for furnished holiday lettings relief now, as time is ticking and they have until the end of July to submit a claim for relief to Her Majesty's Revenue and Customs," she states.

In other news, Nick Stuart, managing director of Spanish Hot Properties, said that a recent fall in Spanish property prices and a rise in building costs means that it is cheaper to buy an existing home rather than construct one from scratch.