A home abroad can be a tax trap

property

The tax implications of buying a property abroad can usually be mitigated with careful tax planning so before buying investors should speak to a tax adviser familiar with the tax laws of the country concerned

As UK house prices continue their upward climb more people are casting an eye towards the overseas property market. An estimated 1.5m British citizens own property abroad. France, Spain, Portugal and Switzerland are the most popular locations, followed closely by the US and South Africa. While many cite the attraction of sun, cultural differences, additional income and a change in the pace of life as reasons for dipping a toe into the overseas market, many often fail to consider the tax implications of their move. This may not be surprising, as tax is not the easiest topic to address comp...