Do you pay stamp duty on overseas property?
If you already own a property in the UK then yes, you’ll need to pay stamp duty even if you’re buying abroad. This is because it will be classed as a second home, and as such you’ll need to pay the surcharge.
Find out more about stamp duty in our guide.
Bear in mind there may be additional taxes you’ll need to pay as well. If you’re renting it out you’ll likely need to pay tax on the rental income, and capital gains tax could come into play as well, though this will only apply should you decide to sell the property in the future and make a profit.
Do your research to find out if there are any local taxes or charges to pay too, with things like purchase tax, registration tax and notary fees often applying. This means it’s wise to speak to a tax expert from the country you’re buying in to make sure you’re prepared.
How many Brits own property abroad?
The Alliance of International Property Owners estimates that some 1.5 million Brits own property abroad, with 30,000 new buyers added to that list every single year.
Is a holiday home abroad a good investment?
Having a holiday home abroad can be a great investment for many, particularly for those planning to rent it out when they’re not using it. The combination of affordable purchase prices and higher rental yields – both of which can be the case in popular holiday destinations – means there’s the potential for great returns, as well as the initial capital investment to benefit from, too.
Just remember to factor in any additional fees and taxes to work out the true returns, and always research your chosen market thoroughly beforehand to make sure it’s a good buy.