DO YOU HAVE TO PAY STAMP DUTY IF YOU PURCHASE A PROPERTY ABROAD?

Even if the property in question is located in another country, you will still be required to pay additional stamp duty if you are purchasing a second property and will consequently be the owner of two homes. Even if your ownership of many properties is only going to be transitory, you will still be required to pay the higher rate. However, this depends on the value of the property you already own, so you must do your research before making any decisions. Remember that you will still be required to pay stamp duty even if you own a fraction of a property.

You must also consider the Capital Gains Tax when dealing with foreign property. When a person who lives in the UK “disposes of” an overseas property and realizes a profit from the sale, they are required to pay capital gains tax.

HOW TO COMPUTE CAPITAL GAINS TAX ON FOREIGN PROPERTY

To determine the total amount of taxable gains, you must first select the profit you made from the sale of each asset during the tax year. After that, tally up the total gains from each item and deduct any permissible losses.

If you live in the UK but do not have a domicile, you must abide by a different set of laws. For a comprehensive computation, please visit the government’s webpage dedicated to the Capital Gains Tax.

HOW CAN I OBTAIN FINANCING FOR THE PURCHASE OF PROPERTY IN ANOTHER COUNTRY?

You might be utilizing a lump sum from your pension, or maybe you have money that you want to invest if you are purchasing a house in another country. If that’s the case, you can buy the home outright. Think about the cost and value of taking up a mortgage for an overseas property either in the UK or with a provider located overseas before deciding whether or not to borrow some of the money for the purchase using a mortgage as an option.

OBTAINING A MORTGAGE TO PURCHASE PROPERTY OVERSEA

When purchasing property in another country, unless you are paying for it entirely in cash, you will very certainly be required to shop around for the mortgage plan that is most suitable to your needs.

You may not need to look any further than your existing bank for an overseas mortgage service because so many high-street banks in the UK provide this service. You might want to work with a familiar source if this is the case. Your choices may be somewhat limited, particularly if you are searching further afield than Europe because you would be handling with the bank’s international division. This division typically only offers mortgages in countries with offices, so your possibilities may be even more restricted if you are looking outside of Europe.

Utilizing the services of a specialist who deals in foreign mortgages is yet another common choice. This kind of broker will often be able to provide customized information, such as a list of lawyers and real estate agents operating in the nation of your choice. Mortgage brokers in Europe typically offer significantly lower interest rates than UK lenders, which means that taking out a European loan could save you money. However, it is essential to consider fluctuations in the exchange rate, as these could affect your repayments. Talking to an expert on different currencies about setting up good choices for transferring money can help reduce the amount of risk involved.