The Organized Expat

In this episode, Tytle’s tax expert explains how tax treaties handle income from real estate across borders. The discussion begins with the basic rule: rental income and capital gains from real estate are usually taxed in the country where the property is located. Whether it’s a rental apartment in Portugal or a house in Spain, local tax authorities typically have the first claim.

The episode also clarifies that, as a resident of another country, you may need to report this income or gain at home as part of your worldwide income. Tax treaties help prevent double taxation by offering credits or exemptions, depending on the treaty terms.

Additional topics include what qualifies as “income from immovable property,” the implications of owning properties in multiple countries, and how non-residents could be taxed differently than locals. Special rules, like those for capital gains or wealth taxes, and specific categories, such as REIT income, are also discussed.

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