Purchasing property abroad can be a very shrewd investment but you need to make sure that you make the necessary steps to protect it and this means making a will.
Article written by The Overseas Guides Company
Here are a few things that you should consider when going through the process…
Speak to the experts
You will find that inheritance laws vary a great deal in each country so you must seek legal advice to ensure that you make a will that is valid and protects your assets. Many make the mistake of thinking that your overseas property is covered by your will made in the UK – this is not the case.
Consider tax implications
As a UK resident, all of your assets across the world are subject to UK inheritance tax at a rate of 40 per cent over your individual inheritance tax allowance. Currently your allowance is around £325,000 and married couples have a combined allowance of £650,000.
As well as being subject to this UK tax, it is more than likely that you will be subject to similar taxes in the country or countries that you own property in. Before you start panicking about how many potential taxes that you might be liable for, check what the situation is for the country in question. The UK has reciprocal tax arrangements with the majority of countries which means that you should only have to pay once. Make sure you speak to a tax expert who will be able to advise you about your liability.
Ensure you and your family are protectedM
It’s a good idea to make the will at the point of sale so that you are covered from day one. Chat to your conveyancing lawyer and see whether they are able to recommend a reputable lawyer to help you draw up your will. Make sure that your new will only relates to the property and assets that you own in that country – don’t include things that you own in the UK – have separate wills in the different countries which take care of the different assets. This way there will be no cross over and should avoid confusion.
For details of property for sale abroad, visit the listings on Rightmove Overseas.
When beginning the process of renting out your property, you need to consider how you will manage your international currency transfers. As you will be receiving and making a number of international payments, you need to ensure that you are getting the best rates possible to maximise your profits. For more information, download a free report from Smart Currency Exchangeby clickinghere, or call them on 0808 163 0102 (free-phone) for a chat about how they could help you.
The views and comments herein are those of the author and do not necessarily reflect the views or opinions of Rightmove Overseas, Rightmove Group Ltd or Rightmove Plc