French investors warned to stay savvy

A property expert has warned that investors hoping to buy a home abroad must take taxes into account when working out how much profit they will make on their home.

In the most part, those who decide to invest in French property look set to do well, as the country's stunning countryside, culture and cuisine never fail to attract visitors from across the globe.

Buy to let landlords would therefore do well to consider buying property there which could be used as a holiday home and rented out for the rest of the year.

Foreign investors 'must consider tax implications'

However, David Austin, managing director of Property for Life, said that a recent crackdown by HM Revenue and Customs means that it is vital for all investors to get to grips with all domestic and overseas tax implications when buying foreign property.

Speaking to Mortgage Strategy, he explained that instead of ignoring details such as income tax, investors should instead put their efforts into trying to find ways of minimising it.

Know your taxes when buying French property

He said "For instance, many people believe that if you own a property in France, you can avoid paying tax on your rental income simply by having a French bank account," he commented.

"That simply is not the case, and the authorities now have the power to find out about this income and act upon it."

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