Expat Buy-to-let or Holiday-let?
Holiday Let – better for you?
To qualify as a furnished holiday-let for tax purposes, HMRC has certain terms you must meet.
- Your property must be available for let at least 210 days a year and let out for at least 105 days a year.
- Each individual furnished holiday-let property must be short term – no longer than 31 days at a time.
- Any continuous stay of longer than that period is not counted towards the 105 days in a year.
- Lettings to friends or relatives at zero or reduced rates will not be counted either.
The main tax advantages of holiday lets, compared to buy-to-let properties is that you can still deduct mortgage interest payments from rental income to reduce your profits and therefore your tax bill.
You also get to stay in the home outside that period of 210 days when it must be available to the public.
A buy-to-let mortgage is designed for long-term lettings – not for you to live in that property.
Mortgages for this type of project are available to expats; it is recommended to consult an independent professional adviser as they will have access to the full range available.
Need assistance?
If you require help with your current or new mortgage, please call one of our experienced independent advisers who will be happy to assist.
