insideKENT Magazine Issue 39 - June 2015 | Page 157

LAW PROPERTY OWNERSHIP ABROAD Owning a property abroad is a dream come true for many, providing a home from home where it is possible to escape from the rigours of daily life. With the current strength of Sterling against the Euro many people may be considering purchasing that longed for property abroad, and once the property search has begun it is easy to get swept along in the process. However, it is important that anyone owning or looking to own property in another country understands the legal and tax position of that property ownership to avoid the dream turning into a nightmare. Kate Arnold If you are buying or selling, it is vital to get clear advice from suitably qualified professionals either in the UK or in the location where the property is. Language barriers can cause confusion and misunderstandings leading to long-term problems, which may impact on your ability to enjoy the property. Understanding the process and all documentation at each step will ensure you agree only to terms you are willing to accept. You should carry out research before you start your search for a property and find a notary or lawyer on the ground that has experience in dealing with English people purchasing in their region – doing so will prove invaluable as you progress through the process. The tax implications of owning property abroad, and disposing of it, can be complicated. Capital gains tax may be payable on a sale if the property is your second home; rental income may need to be reported both in the local country and in the UK; and the property is likely to be subject to inheritance tax or its equivalent in both countries. Certain countries may charge a separate gift tax and available exemptions and allowances vary from country to country. Roger Holman country. If someone dies after 17th August this year, they may be able to choose between the succession law of the country of their habitual residence or that of their nationality, which can assist them in directing their assets as they wish. There are a number of factors that must be taken into account in identifying how this regulation will apply to any individual, and professional advice is strongly recommended. The key is to ensure that your advisers have the appropriate specialisms and work together to provide cohesive advice. Cripps has a dedicated international team advising individuals on taxation and legal issues arising from owning property outside the UK. By working closely with MarcAlliance partners, an international network of legal and tax experts, Cripps will ensure you have access to the full range of advice you may need in different jurisdictions. For further advice or information, please contact: Kate Arnold Partner T: 01892 506 337 E: [email protected] While concern about the tax implications should not be a reason to hold you back from a purchase, understanding them ensures you are not caught unaware and that you can plan ahead. Fortunately, the UK has a wide network of double tax treaties, which ensure that