Investment, search for attractive prices, rental profitability or a more favorable tax regime than in your country, more and more people living in Europ are starting to buy real estate abroad. The tax issues that may be encountered by european investors investing abroad will be, by nature, mainly those of the country in which the property is located. An investor residing for tax purposes in France or England, for example, may, however, be confronted with the tax laws in force in his country of residence. Here are some general principles that you should be aware of before seriously considering buying a property abroad.
Tax obligations in your country of residence and in the country where the property is located
By its transnational nature, the investment by an european resident in a property abroad generates tax obligations both in its country and in the country where the property is located. In view of the multitude of possible configurations, the extent of these obligations must be analysed on a case-by-case basis.
A sound tax management of an investment abroad must be coordinated with an adequate management of all your country of residence and foreign legal issues relating to the ownership of a property (real estate law, family law, inheritance law).
This is why we recommend too much to the client wishing to invest in foreign real estate for any project to be advised both in his country of residence and abroad by a legal professional and to anticipate before the purchase each future step of the real estate investment.
in the event of a purchase of property outside the borders of your country of residence, registration duty, gift or inheritance tax applicable to transfers of real estate located abroad, double taxation, tax treaties specific to inheritance tax, deduction of foreign tax from the tax of your country of residence, The general taxation of real estate held abroad requires at least the intervention of a notary, if not a specialist in tax law and inheritance law in order to optimise your real estate held abroad for tax purposes.