Owning EU property abroad (for holidays and holiday let purpose)

[d000hg]

Does anyone know anything about this, maybe even is in the situation they own a foreign property elsewhere in the EU? I'm sure it varies a lot from country to country but any advice or experiences would be welcome.

In the UK, it seems the advice is that it's still better not to buy/own properties through a company but I wondered whether owning foreign property changed that, especially if we are considering buying more properties later.

I imagine we'd have to have a bank account in the other country (Finland in this case) but in terms of taxation on rental income and getting the money into the UK (or leaving it abroad) I've no ideas at all where I stand.

I've a link to a contact abroad who can hopefully advise but would welcome anything from you lot

Specifically, we're considering buying (for cash) a holiday let property in Finland which we would typically use ourselves a couple of weeks a year.

[Jessica@WhiteFieldTax]

You've got two issues.

First, UK taxation, specifically CGT on sale and potential BIK for personal use. It's broadly the same as owning a UK property, and the pointers tend to be towards personal ownership. Generally UK taxation doesn't change for want of the property being abroad, although there may be a need to fall back on double taxation treaties for some things.

Secondly you've got host country taxation, and that will vary by jurisdiction. You will need either local advice or UK advice from a specialist in your proposed host country. EG, it's common for a UK national to own French property through an incorporated entity to minimise problems with estate duty in France, but it has to be done a certain way to avoid the BIK in this country.

It's unlikely that ownership through either your UK contracting company or a UK company per se will be the best way forward, but you will need more specialised and personalised advice.