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Self-employed landlords to pay interim tax by 31 January

Monday, 27th January 2020

Self-employed landlords to pay interim tax by 31 January Image

Landlords owning Gibraltar properties in their own name as self-employed persons and whose properties are rented out are reminded that an interim tax payment is due on or before 31st January 2020 in respect of the year ending 30th June 2020. Gibraltar deems all landlords as self-employed where they rent out a Gibraltar property in their own name. It may be possible to pay the tax on rental income via a PAYE code if the landlord is employed in Gibraltar.

Rental income form a property that is rented out in Gibraltar is chargeable to tax. Landlords must register at the Income Tax Office using the Rental Income Registration Form and thereafter, at the end of every tax year, a tax return must be submitted together with an income and expenditure account in respect of each property.

Advance payments of the tax liability to 30th June each year are based on the liability in the previous accounting period. The payments are payable in two equal instalments by no later than the 31st January and 30th June every calendar year. Should any further tax be due, this is payable by 30th November.
 
Surcharges for late payment equate to 10% of the tax due from the first day late and a further 20% if 90 or more days late.
 
This tax is payable regardless of residency of the landlord.
 
Some property investments in Gibraltar are tax-free for two years for landlords.  Contact us for more information.
 
Our joint venture subsidiary, Buckingham Corporate Services Limited was established to assist Chestertons clients with their tax and other regulatory obligations.  For further information or general guidance please contact David Frier

Contributed by Mike Nicholls