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Overseas property taxes vary massively from country to country. Some countries are considered tax havens and offer substantial incentives to overseas investors. Some countries offer very little tax incentives and it is vital to take professional advice before making a commitment. Impartial, well-researched information based on up-to-date local knowledge can make or break the financial viability of a property purchase.

A case in point is the recent changes to the Dominican Republic’s tax laws. Some unscrupulous or misinformed estate agents are still touting the Dominican Republic as a “Property Tax Free Haven.” This is no longer the case, although there are loopholes in the law that allow the canny investor the opportunity to defer or avoid taxes. There are also certain tax incentives available for a limited period. Advice about this subject can be found here. It also has to be said that there is a certain level of confusion about the property taxes in the Dominican Republic, even amongst the locals. The government has been lax in introducing and collecting taxes and it’s quite possible for someone to live in the Dominican Republic without ever being aware that any taxes exist. Unlike the UK, where it is almost impossible to be ignorant of the local tax structure.

Morocco is another case in point. Presently the local government is encouraging overseas investors with a wide range of tax incentives. In fact, it is possible to avoid paying any property tax whatsoever for the first three to five years of ownership. Another benefit is the lack of inheritance tax in Morocco; property can be inherited by a family member without paying a single penny in duties. But, once again, it is important to take well-informed, professional advice to be able to take advantage of these tax benefits.

Buying overseas property should be a fruitful, painless task and some of the tax incentives alone make financial sense. Especially when compared to the near crippling taxes inflicted on property owners in Britain. Many “emerging markets” clearly see the benefit of overseas investors living in their country and are prepared to bend over backwards to encourage them with years-long property tax exemptions, reduced taxes on rental incomes and in some cases a complete absence of particular taxes.

When you consider the fact that many of the properties available are in places where the overall cost of living is a fraction of the UK’s and the weather is invariably far better, the added incentive of low or no taxes makes buying a property overseas an extremely attractive financial proposition. Even in the more established markets such as Spain, Cyprus and France, the proper advice can make any purchase even more financially rewarding.