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Old 25.06.2018, 14:24
LuganoPirate LuganoPirate is offline
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Re: Investment in London, UK property?

I just sold the last of my properties in London recently, which were rented out so I do have first hand experience of this:

I assume you're a Swiss taxpayer and renting the property in a private capacity?

Your rent will be subject to a UK withholding tax which will be retained by either the rental agency or the tenant and handed over to the taxman. However you can apply to HMRC to have this payed gross. If they agree you can show this letter and receive the rent gross.

It is not guaranteed you will receive the personal allowance as you're not UK resident, you will have to negotiate that as well.

You will then pay tax at 20% after all deductions (including a personal allowance if granted) for maintenance, agency fees, advertising etc.

You will also have to register online as a UK taxpayer.

You will not be taxed on this income by the Swiss as they do not regard foreign real estate income as this is now taxed in the country where the real estate is located.

If you do rent then i would use an agency (I did) who will take a commission but make sure to add insurance in case the tenant defaults. They will also hold the deposit for you as that needs to be held in a special segregated account.

Finally, calculate the real return, including voids and maintenance, and see if you're not better off selling the property and investing the money in a portfolio of shares or even in Swiss property instead.
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