Tax on Overseas Property

We've had a few e-mails on this so it's well worth looking at. I'll ensure that a separate article is prepared on this. When looking at the tax implications of buying overseas property you'll need to firstly look at your residence and domicile status. There are plenty of articles and posts on the site considering this. If you're UK resident & domiciled you're taxed on your worldwide income and gains. If you're non UK resident you're not subject to UK income tax or CGT on your overseas property income/gain If you're UK resident but a non UK domiciliary you're only taxed on income or gains from the overseas property to the extent that you bring the income or proceeds back into the UK. It's therefore important to find out in which category you're in as this can signifcantly impact on your tax position relating to an overseas property. Assuming you're a UK resident domiciliary you'll also need to consider what you're going to do with the property. If you're not renting it out there won't be any income tax implications. You'll just need to consider capital gains tax when you sell, and inheritance tax (- a separate issue!). If you are renting it out there'll be income tax to consider on the rental profits. A related issue is to consider whether to use a company to purchase the property. We look at this in detail in this report: Should you buy overseas property via a company? As well as all of this you should be looking at the overseas tax implications! Check out these tax planning books which you may find useful.