Real estate amortization abroad
You too can profit from the regulations of the international double taxation agreements. How? Reduce your tax load by depreciation on foreign property.
Foreign real estate is becoming increasingly popular around the world. Not only because many countries attract investors by offering them tax cuts. Particularly small and first time investors can benefit from marginal tax rates and extra bonuses. Also tax rates on capital gains can be favorably low and thus have a positive effect on returns in some places around the world.
One important aspect that needs to be covered is whether your foreign income will be exempted from taxation (exemption method with progression proviso) in your country or not. In the second case the following tax charging applies: Foreign revenue is also taxed in your country; the taxes already paid abroad will, however, be taken into consideration for the taxation in your country.
If you inhabit your foreign estate temporarily yourself throughout the year you will be required to do a revenue forecast for taxation purposes. Important here is that only if your forecast is predicting a positive income it will be considered for fiscal acknowledgement.
All costs connected to renting out the estate like cleaning costs will be fully recognized as operating expenses. Is your revenue forecast negative however those costs won’t be considered for deduction and your rental revenues will be tax free.
Tell us more about your favorite places to invest and we will explain the advantages of investing in foreign estate to you. Our specialists will be happy to introduce you to the respective taxation particularities of the country of your choice. Our network of specialists stretches all around the globe to offer our clients outstanding service and support.
One important aspect that needs to be covered is whether your foreign income will be exempted from taxation (exemption method with progression proviso) in your country or not. In the second case the following tax charging applies: Foreign revenue is also taxed in your country; the taxes already paid abroad will, however, be taken into consideration for the taxation in your country.
If you inhabit your foreign estate temporarily yourself throughout the year you will be required to do a revenue forecast for taxation purposes. Important here is that only if your forecast is predicting a positive income it will be considered for fiscal acknowledgement.
All costs connected to renting out the estate like cleaning costs will be fully recognized as operating expenses. Is your revenue forecast negative however those costs won’t be considered for deduction and your rental revenues will be tax free.
Tell us more about your favorite places to invest and we will explain the advantages of investing in foreign estate to you. Our specialists will be happy to introduce you to the respective taxation particularities of the country of your choice. Our network of specialists stretches all around the globe to offer our clients outstanding service and support.
Where would you like to invest? You can send us an Email to info@immoworlduk.com, use this contact link or call us on +442075539782. We are looking forward to your call.
