Investors told to consider IHT
Wednesday November 28th , 2007
People buying property overseas have been warned that they could be liable for inheritance tax on the assets they own abroad.
According to Alex Pegley of Calculis, people ought to "get a feeling" of the IHT system in the country they intend to buy property.
In Britain, investors should seek the advice of an independent financial adviser or an accountant, but those with investments overseas should look for guidance in the country in which they plan to purchase property, Mr Pegley suggested.
"People don't think of doing it, in my experience. It's only when they've been advised to do that that they'll do that," he remarked.
Mr Pegley also warned people buying investment property in Spain that they could be liable to pay wealth tax, which is levied on the value of their property and other assets.
Legal advice website iAbogado warned that although most residents do not pay the tax, non-resident property owners are always taxed on their Spanish assets. 
