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There are some countries that put property tax on non-residents in their country. Moreover, the double taxation agreement between a particular country and the UK do not move even a single step to stop this. There are some categories that you should look at.

If a person invests in the property abroad, he has to experience the overseas property tax. Foreign property tax comes under the five categories: tax on property purchase, income tax, annual charges, property sales tax, death or gift tax. Any one of these categories will be applied to a foreign holiday home that is owned by a UK resident. All these categories will be applied if a property is ever rented out.

The next category is annual charges that are mostly imposed by the local and regional Government on either a flat rate or property value. In addition to it, there is one more annual charge i.e. wealth tax. Many countries charge the wealth tax on non residents that is especially based on the net property value and the other assets which they carry in a particular country. There are many countries which put tax on profit and income that is emerged from property either through letting, development or dealing. Rental income will be taxed on profits after some deductible expenses. Each country has their own rules and regulations regarding the deductible expenses.

Once you sell a property abroad, you will have to come up with tax liability on it. There are some countries that impose tax on the extra profit after selling of a property. Last but not the least is the tax on death or gifts. Usually, when ever there is a death tax, there will be a lifetime gift tax as an anti avoidance step. Many countries impose death tax on non residents that is based on property and other assets.

Make sure you know the nitty gritty of the criterion on the basis of which tax is charged on overseas property.

Tags: foreign property tax, overseas property tax, property tax abroad



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