Taxation

Take Advice! This is an important subject.

It is not possible to offer any real advice on the topic of international property taxation here because the impact of tax on an individual's own position will depend entirely on the individual's personal circumstances, their income from various sources and of course their country of residence and domicile for tax purposes.

There are any number of web sites out there offering you information about taxation in just about every country on the globe.  Be wary of these sites; information may be out of date and in any event, the information may or may not be applicable to you, depending on your own particular set of circumstances.

Rather than attempt to give any detailed advice we can provide you with some guidance as to what questions you need to ask a qualified tax adviser, and to give you a head start in finding a suitable adviser to provide you with the advice you need.

So, the following are the five main questions we think you should be asking your tax adviser:

• How is any gain on the property I am buying going to be taxed in the country in which I am investing?
   

• How is any rental income going to be taxed? Is there a minimum tax on rental income? Is there a withholding tax (which means that in the country where you get the rental income from somebody has to pay over a certain amount of tax to their tax authorities first)?
   

• What Inheritance Tax will be levied on death or a gift of the property by the owner in that country where the property is situated?
   

• Are there any other local taxes to consider such as, purchase taxes when I buy a property, annual rates, (and one that you probably won't have thought of is) - annual wealth taxes, which are based on the value of a persons assets situated in that country?
   

• What are the tax implications before you sign any legal binding agreement on the property.

Maybe your own tax adviser or accountant is aware of the international tax implications of buying a property abroad? If not, we advise you to locate a tax adviser in your area who can assist you.