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sceptic

Tax Relief For Interest Payments When Buying Abroad

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Having given up on the local market for the time being / until the insanity is over, we are now looking to invest in Germany, our home country.

As many of you out there seem to look into overseas property as well, perhaps someone could help with the following:

Can I get tax relief for interest payments for buying overseas property (in Germany)? I.e. if I rent out a German property, can I deduct capital expense for buying this property against rental income? And if so, where? In Germany or in the UK? Would this be under Double Taxation Treaties or direct (EU)? We're resident in the UK.

Thanks for your help!

sceptic

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Having given up on the local market for the time being / until the insanity is over, we are now looking to invest in Germany, our home country.

As many of you out there seem to look into overseas property as well, perhaps someone could help with the following:

Can I get tax relief for interest payments for buying overseas property (in Germany)? I.e. if I rent out a German property, can I deduct capital expense for buying this property against rental income? And if so, where? In Germany or in the UK? Would this be under Double Taxation Treaties or direct (EU)? We're resident in the UK.

Thanks for your help!

sceptic

In the UK the capital cost is usally deducted from the capital gain onlt upon selling.

For renting the costs you can offset against Tax are mortgage interest etc. As for the country in which you remit any income or gains, Im not sure which is best. I bought land which has no yield. Im inclined to think the UK Tax regime might be a little more user freindly than the German, I hear German Tax law is equivalent to 50% of the Tax law written for the entire Globe!!!!!!!!! :o

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For renting the costs you can offset against Tax are mortgage interest etc.

Do you know if it matters whether we take out the mortgage in Germany or the UK?

sceptic

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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