Do British Expats in Spain Need to File a UK Tax Return
By Miles Hemmings, The Expat Accountant
It’s one of the first questions I get asked by British expats living in Spain — and honestly, it’s the same question I asked myself when I first moved here while renting out my house in Kent.
I remember thinking:
“I live in Spain now, so surely my taxes are dealt with in Spain?”
Then came the second thought:
“But the rental income is coming from the UK… so does HMRC still expect a tax return?”
And finally:
“I don’t even know where to start.”
If that sounds familiar, you’re not alone.
Many British expats assume moving abroad automatically ends their UK tax obligations. In reality, if you still have UK income — such as rental income, pensions, investments, or business income — you may still need to file a UK Self Assessment tax return with HMRC.
The good news is that it’s usually far more straightforward than people expect once the rules are properly explained.
In this guide, I’ll explain when British expats in Spain still need to file a UK tax return, what income HMRC still taxes, and how double taxation relief works between the UK and Spain.
The short answer
Living in Spain does not automatically mean you stop having obligations to HMRC.
Whether you still need to file a UK Self Assessment tax return depends on what income you still have in the UK — not where you live.
When do British expats still need to file a UK tax return?
UK rental income
This is the big one.
If you own a property in the UK and it’s rented out — even just one flat at a modest rent — HMRC will usually expect you to declare that income through Self Assessment.
It doesn’t matter that you live in Spain. The property is in the UK, the income is UK-sourced, and HMRC still has taxing rights over it.
UK pensions
State pensions, private pensions, and defined benefit schemes may still create UK tax obligations depending on your circumstances and the UK-Spain Double Taxation Treaty.
This often catches many British expats by surprise.
UK employment or self-employment income
If you still work for a UK employer, operate a UK limited company, or earn freelance income from UK clients, that income may still remain taxable in the UK regardless of where you live.
UK dividends or investments
Income from UK shares, funds, or investment portfolios may still need to be declared, particularly if it exceeds your available allowances.
Selling a UK property
Capital gains on UK residential property must usually be reported to HMRC within 60 days of completion — even if you live overseas.
This deadline is strict, and penalties for missing it can be significant.
When you might not need to file a UK tax return
If you have no UK income of any kind — no property, no pension, no employment, no investments — and you've properly established Spanish tax residency, then you may have no UK Self Assessment filing obligations at all.
But be careful. "I don't think I have any UK income" and "I definitely have no UK filing obligation" are two different things.
The details matter. A small pension, Premium Bond winnings, or a forgotten ISA can all change the picture.
What about paying tax twice?
"If I have to declare my UK rental income to both HMRC and the Spanish Agencia Tributaria, does that mean I get taxed twice?"
No — and this is exactly where proper cross-border tax advice makes a real difference.
The UK and Spain have a Double Taxation Treaty designed to prevent the same income being taxed twice.
It means that where you've already paid tax in one country, you can claim relief in the other.
In most cases, the treaty allows you to claim relief for tax already paid in the other country, helping to prevent the same income being taxed twice.
Which is exactly where mistakes happen when people try to handle it themselves.
What if I haven't filed for a few years?
This is far more common than most people realise and it's nothing to be embarrassed about. Most people who've missed years did so because they genuinely didn't realise they had an obligation — not because they were trying to avoid anything.
The good news is that both HMRC and the Agencia Tributaria have processes for getting up to date voluntarily, and in most cases it's far more straightforward than people expect. The key is to deal with it proactively rather than waiting for HMRC to contact you — voluntary disclosure is generally treated more favourably.
In many cases, getting up to date is far less stressful — and far less expensive — than people fear.
Where do I start?
Honestly? With a conversation.
I know that sounds like a simple answer but it genuinely is the right one.
Everyone's situation is slightly different — the combination of income sources, when you moved, how you established residency, what's in your name and what isn't — and the right approach depends on your individual circumstances, not a generic checklist.
I offer a free initial consultation, and it's exactly what it sounds like.
No pressure, no commitment, just a chance to explain your situation and get a straight answer about where you stand.
If you'd like to have that conversation, send me an email at hello@theexpataccountant.com or click the link below and we'll take it from there.
Miles Hemmings is a British accountant based on the Costa del Sol, specialising in UK and Spanish tax for British expats.
The Expat Accountant provides UK self assessment returns, Spanish tax returns, and ongoing cross-border tax advice.
Tax rules depend on your personal circumstances and can change over time, so professional advice is always recommended.