I want to buy a property abroad, is it true the government intends to levy a tax on owners of second homes?

Answer 1

Hi there

There have been rumours of taxing second homes in the UK, however rental income profit is always taxed as an un-earned income.

If you have income (profit) from a rental home abroad then the govt can tax you on this also. They can also tax you on any capital gains you make from the property increasing in price.

BUT - many countries are also now starting to tax foreigners who buy second homes. In most cases you pay tax on the rent and in some cases you pay tax on the "expected rent", irrespective of whether you actually get any! And many countries will add some more tax for capital gains.

Overall my advice is to get advice from an accountant, not just for the UK tax that applied, but also for the taxes from the country where you are thinking of buying the property.

Here is a website that has information on second homes, propertysecrets.net

I hope this helps

Answer 2

Yes, but I don't think it has anything to do with homes abroad.

Answer 3

Probably.