Purchasing property overseas?

[sptrawler]

Does anyone have any experience purchasing freehold properties overseas? What issues arise?
Is there any problems transferring the money o/s for the purchase?
If the property is then rented, does the income become taxable here or in the country of purchase?

 

[FlyingFox]

Does anyone have any experience purchasing freehold properties overseas? What issues arise?
Is there any problems transferring the money o/s for the purchase?
If the property is then rented, does the income become taxable here or in the country of purchase?

Depends on where you want to buy. Legal standing/rights of tenants an landlords vary wildly between countries. As do property laws.

Transferring money should not be a problem as long as it is not encumbered. Getting money back out of the foreign country is a different thing.

Tax depends on the tax treaty between the country and Oz. I don't think there is any double taxation but you maybe liable for the difference in tax rates between there and here. You might also get taxed there at foreigner rates which might be quite high. Also you need to declare the income for the purposes of tax exemptions, family tax benefits, centerlink etc.

 

[doctorj]

Does anyone have any experience purchasing freehold properties overseas? What issues arise?
Is there any problems transferring the money o/s for the purchase?
If the property is then rented, does the income become taxable here or in the country of purchase?

Do you have a particular country in mind? As FF says, the issues vary from place to place.

 

[sptrawler]

Do you have a particular country in mind? As FF says, the issues vary from place to place.

Yes, sorry guys, the U.K specifically England.

 

[Garpal Gumnut]

Yes, sorry guys, the U.K specifically England.

I'd avoid the UK, look at the PIIGS, Portugal, Ireland, Greece, Italy, Spain.

Eire and Spain would be my picks. Good prices. Should recover.

Italy, maybe.

gg

 

[doctorj]

I'd avoid the UK, look at the PIIGS, Portugal, Ireland, Greece, Italy, Spain.

Eire and Spain would be my picks. Good prices. Should recover.

Italy, maybe.

gg

London prices have hardly stopped going up - driven by international demand at the high end and a severe lack of supply for mid-ranged property.

If you're interested in Spain, it's worth looking at the properties reposessed by banks. La Caixa lists there collateral available for sale at http://www.servihabitat.com/svhPortal and if Catalunya isn't your style, most of the other banks have something similar.

 

[FlyingFox]

Another point I forgot to mention was beware of currency changes. In the current scenario it will most likely work in your favour but ...

 

[sptrawler]

Only UK, England, has anyone bought property there? There is no doubt a tax connection, but is there any connections regarding rent?
If you buy the property there, bank the rent there and don't transfer the money here. Do you have to pay tax here or pay the tax there?

 

[Garpal Gumnut]

London prices have hardly stopped going up - driven by international demand at the high end and a severe lack of supply for mid-ranged property.

If you're interested in Spain, it's worth looking at the properties reposessed by banks. La Caixa lists there collateral available for sale at http://www.servihabitat.com/svhPortal and if Catalunya isn't your style, most of the other banks have something similar.

A good point.

My preference would be Eire.

They have the rule of Law and speak English, and property is cheap.

One never knows in Spain whether one is dealing with corrupt Royalty.

Just google it, it's a really sick society Spain.

gg

 

[sptrawler]

Only UK, England, has anyone bought property there? There is no doubt a tax connection, but is there any connections regarding rent?
If you buy the property there, bank the rent there and don't transfer the money here. Do you have to pay tax here or pay the tax there?

Anyone with answers to the questions?

 

[Garpal Gumnut]

Anyone with answers to the questions?

You would need to speak to an accountant, or google it. mate.

I think you would be very unwise to buy property in the UK atm by the way.

gg