Unless investors are lucky enough to live in a country where tax is not an issue, it is probably that time of year when some will wake up in cold sweat having nightmares about their tax liabilities.
(PRWEB UK) 25 January 2013
Loxley McKenzie, Managing Director of Colordarcy commented, “Unless investors are lucky enough to live in a country where tax is not an issue, it is probably that time of year when some will wake up in cold sweat having nightmares about their tax liabilities.”
Colordarcy points out that investors can never be certain how their country’s tax authorities will treat them in any given tax year and there are times when they may even decide to take a closer look at an investor’s affairs.
If an investor happens to have a have a good accountant, then this probably takes most of the weight off their shoulders. At least if they are keeping an eye on matters relating to tax on overseas property. Unfortunately it appears that governments in the UK and elsewhere are taking a much closer look at tax avoidance schemes.
Overseas property investors will be one of those groups they will keep an eye on. There can, however, be times where investing in overseas property can still work to an investors advantage.
If, for example, a UK investor purchases a property in Turkey, they can at least take comfort in knowing that there is a double taxation agreement in place.
This means that if an investor is unfortunate enough to end up paying CGT on the sale of a property in Turkey, then at least they can credit it against their UK liability.
The situation is more complicated if an investor is unsure of their tax status. An individual could, for example, be a UK national living and working in Dubai and paying no tax, but liable for tax on the income from UK buy-to-let property.
One of the perks for UK investors who can avoid spending more than 90 days in their own country in any tax year is that they can enjoy their expat status and look to invest in countries where they can escape nasties like CGT.
It is possible to invest in property in Istanbul for example and avoid paying CGT after 5 years of ownership. Now that is something that will help investors enjoy better night’s sleep this month.
Colordarcy.com offers in-depth information on tax matters for those looking to invest in a variety of countries http://www.colordarcy.com/taxation.php.
Notes to the editor:
Colordarcy is a leading property investment company that specialises in finding positive cash flow investment properties worldwide. Colordarcy investment property portfolio includes some of the best properties for sale in Brazil, Florida, Turkey and the United Kingdom.
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