What are the financial implications of buying and living abroad?

publication date: Mar 2, 2010
author/source: Kate Faulkner, Property Expert and Author of Which? Property Books

What are the financial implications of buying and living abroad?

There are five main things you need consider with regards to financing a purchase or move abroad:-

1. Will you finance the move with UK funds or is it advisable to borrow money via a mortgage in the country you are moving to? You need to consult an independent financial advisor and a specialist overseas mortgage company to help with this decision.

2. What are the total costs of buying and selling a property abroad?  Don’t forget to include the selling as well as the buying costs.

3. Make sure you open a local bank account so you can access money when you are in the country and pay bills.

4. Understand the tax implications of buying and selling a home – some countries will charge VAT on a property sale or purchase when you buy a home.

5. Make sure you are aware of how your income or any growth in value from the property will be taxed, especially if you have to pay tax in the UK as well as the country you are living in.

A top tip is to find a tax expert that understands the tax implications BEFORE you buy or move abroad, as they may be able to help reduce your tax bill more than if you wait until after you’ve bought and start earning income abroad.

For more overseas property information, take a look at What are the legal differences when buying and living abroad?

If you need independent advice on buying or living abroad, or have an overseas property question that's needs answering, then visit the Designs on Property website, email enquiries@designsonproperty.co.uk or tel 0845 838 1763.

Need help with a property problem? Have a question? Why not call Designs on Property on 07585 897128 or Contact Us via email.
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