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kevin-

Best way to structure an overseas purchase

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Hi,

I am looking to purchase an overseas property with a view of living in it for a couple of years before renting it out for the long term.

Can someone please advise what is the best way to structure the purchase? 

It's worth noting the jurisdiction of the property benefits from lower income tax & corporation rates than the UK. If a limited company were to be set I wouldn't be interested in receiving annual dividends as I see this investment as something I could benefit from in my retirement. However, given the above point about lower local tax rates I'm unsure if a local limited company could be a preferred option?

Many thanks in advance

K

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This is dependent on many factors such as, the jurisdiction of where you are purchasing, the impact on your UK tax position (if you are UK resident), your earnings and also where you are domiciled. 


Jagrup Lewis
Accountant & Client Manager

https://propertyhub.net/service/tax/

03_tax.png.a17b7d630c261775113e6f323730c943.png

 

 

 

 

We can only give general information on a public forum, and nothing in this post should be interpreted as advice. To speak to us about becoming a client and receiving bespoke advice, call us on 020 3936 2170 or email tax@propertyhub.net

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Thanks for coming back to me J Lewis.

I am currently a higher rate tax payer who is UK resident and UK domiciled. The proposed purchase is likely to be outside of the EU.

If you are able to provide assistance based on the above information that would be much appreciated.

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If you are UK resident and domiciled in the UK, you will be liable for tax in the UK on your worldwide income. If you purchase the property personally, this will mean any rental income arising, and if you purchase through a Ltd company, you will be liable for any income to take from the company. There may be further tax in the country that you purchase, which is dependant upon the jurisdiction. You may get tax credit in the UK for any foreign taxes paid if there is a double tax treaty in place.


Jagrup Lewis
Accountant & Client Manager

https://propertyhub.net/service/tax/

03_tax.png.a17b7d630c261775113e6f323730c943.png

 

 

 

 

We can only give general information on a public forum, and nothing in this post should be interpreted as advice. To speak to us about becoming a client and receiving bespoke advice, call us on 020 3936 2170 or email tax@propertyhub.net

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