Owning a property abroad comes with legal and financial responsibilities. Just as the ownership of your UK property comes with responsibilities attached, so does your new property abroad. As a home owner in a foreign country, you need to make sure that you are abiding by all the relevant legislation.
Tax
Tax issues can be complicated for people owning a home in the UK and a property abroad. Tax will be levied on you in both countries, and you will have to check that you are not being taxed twice for the same thing. For example, any rental income you earn will be taxed in the UK, and whilst this might not be much, you will have to watch that your income from your property abroad doesn’t push you into the higher tax band. In addition, check that you’re not also getting taxed on this income by the country where you bought your property. Many countries have a double-tax agreement with the UK, which means that you only pay the tax in one country. Check whether this applies to your property abroad, and speak to our tax expert if you have any other questions or concerns.
Legal
There will be some legal responsibilities that come with ownership of a property abroad. For example, what arrangements have you made for the sale of the property in your will? The legal implications of selling the property or registering new owners after your death may be costly. You should check this out when you are buying your property abroad, and make sure that your will is updated accordingly. In addition, there may be local legal requirements of you as a property owner and you should check these with your estate agent or solicitor to make sure that you’re always on the right side of the law.
Tenants
If you are renting your property abroad, you have a responsibility for the safety and welfare of your tenants. Your property must be in good order, and fixtures and fittings should be checked and inspected regularly to ensure that there is no danger to people staying in your home. This is not only good landlord practice, but it ensures that you comply with local tenancy regulations and that you avoid costly litigation should anything go wrong.
Owning a property abroad is a fantastic experience, but it’s one that comes with its own responsibilities. Take them seriously and you will be able to enjoy many years in your new home.
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More About HolidayHomeNow: HolidayHomeNow has been set up to provide useful, practical information for those people researching and looking into buying a second property or holiday home abroad. For more information have a look at their website Property Abroad |
