Buying Property Abroad

Tax and your Property Abroad

Owning a property abroad brings financial responsibilities that can include meeting local and UK tax requirements.

Every country has a different taxation system, and it's worth knowing a little more about the tax system in the country where you're purchasing your new property abroad. The last thing you want after you've moved into your dream property is to discover you have a huge tax bill to pay.

What sort of taxes can you expect to pay? Well, that depends on what you're planning to do with your property. If you're moving there permanently, or using it exclusively to holiday during the year, you may only be liable for local taxes. However, because they vary widely, both at the time of purchase and whilst you are an owner or occupier, you should get some professional advice. Taxes can include:

• Stamp duty
• Land tax
• Registration tax
• Property transfer tax
• VAT equivalents

To avoid paying too much tax, or getting in difficulty for not paying the right taxes, consult a tax expert; either in your country of purchase, or a UK tax accountant who specialises in tax issues for owners of property abroad. They should be able to advise you properly; so that you only pay the taxes you are liable for.

UK tax on your property abroad

If you are renting out your property abroad, thereby earning an income, you could be liable for tax in the UK. To check this, you need to talk to your local tax office. Explain your plans and they should be able to give you some advice. Remember that the UK has an agreement with certain countries that ensures that British citizens don't get taxed in both countries for the same thing. Check if the country where you're buying your property abroad has signed up to this agreement.
 
More information on buying property abroad:

Researching buying a property abroad  Why buy a property abroad?  Points to Consider when buying a property abroad  How to finance your property abroad – various options and likely costs  Building a property abroad  General tips for buying a property abroad  Buying a property abroad with friends  Choosing your new property  Could buying a property abroad secure your future  Insuring your property abroad  Buying property abroad as an investment  Living permanently in your property abroad  Maintaining your property  Property abroad - don't stop at Europe  Property abroad - FAQs  Renting your property abroad  The responsibilities of owning a property abroad  The true costs of an overseas property  Viewing your property abroad  Legal considerations when buying a property abroad

• Request a quote for an overseas mortgage
• Enquire about currency exchange
• Get a quote for equity release
• See how much your endowment policies are worth
• See how much you can spend by remortgageing
• Appoint a UK legal representative
• Get a quote for overseas property insurance
• Find a property