“Purchasing ski chalets or apartments outside the UK, means there will be tax considerations to address” – Mazars on Knight Frank Ski Property Report

In light of Knight Frank’s Ski Property Report, which shows that demand is outstripping supply for properties with proximity to the slopes, Paul Barham, Partner at Mazars comments on the tax implications to consider.

Paul Barham, Partner at Mazars: “Remote working has undoubtedly been a driver of more people purchasing properties in well-loved ski resorts. And many will be keen to make the most of the new flexibilities, enjoy the season and make up for some lost time this winter. But purchasing ski chalets or apartments outside the UK, means there will be tax considerations to address. The buying of any property overseas requires careful structuring, given that many people will need to manage their tax position in both the UK and in the overseas country.

We still don’t yet know what changes each country might make to its regime to repay Covid debts and it’s very likely changes to capital taxes will be part of the solution. Not only should prospective buyers think carefully about how to acquire a property in a ski resort to meet any current tax conflict between two countries, but an equally  important consideration will be assessing how flexible that plan might be.”