MORE than 600,000 Brits have been left in expensive tax limbo by the latest government update on overseas travel, according to experts.
Non-resident holiday homeowners have to pay Spain’s 24% Modelo 210 tax on the estimated letting value of their property, whether rented out or used exclusively by the owner, said accountancy firm Spanish Taxes Online.
“Holiday home-owners have been hit hard financially by a mixture of COVID-19 and the UK leaving the EU, which saw their Modelo 210 bills increase by 25%,” said marketing director, Nick Ball from Spanish Taxes Online. “More delays and uncertainty are worrying, costly and unfair.”
It comes after new plans announced last week revealed that would-be holidaymakers will have to follow a traffic light system for trips away later this year.
It will see countries ranked either green, amber or red, to determine whether travellers need to quarantine and if COVID -19 tests are needed.
The traffic light system was detailed in a new report by the Global Travel Taskforce but will only apply to English travellers. Governments in Northern Ireland, Scotland and Wales can set their own rules.
Under the current plan for easing restrictions, the earliest date people in England could go abroad for a holiday would be 17 May.
Prime Minister Boris Johnson said it was “too early” to set out new foreign travel rules for the summer.
It is currently illegal for anyone to leave England for a destination outside the UK without a reasonable excuse, such as for work, education or medical treatment. Those who do could face a £5,000 fine.
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