It’s been a bit quiet lately as we deal with the important and dull necessary tasks…
We’re trying to leave the UK with no outstanding bills, other than the mortgage. A couple of long term loans are being pressed into shorter terms just so we have no financial baggage.
That aside, we face the issue of dealing with our house. The two choices are to keep it and get agency to let it out, or we sell it.
Either way we get hit with taxes when taking the money across to Sweden.
It’s around 15% of what you bring in (over a certain amount). Selling the house would be a big hit. Once the mortgage is cleared by the sale, there isn’t a great deal left to take in real terms, and then getting that taxed would be painful. All the payments and for what?
Leasing through an agent still seems the way to go. We figure the monthly income would cover the agency fees, the mortgage & the maintenence. Until the lease payments pay off the mortgage we wouldn’t see much income, but once paid off, we’ll have a steady income for ourselves in our later years (the house would be a good pension). Yes, the income into Sweden would be taxed, but it’s income all the same and it’s also going to be income when Alex is older. It would give him something of a parachute in life.
If the income goes direct to Sweden, and then the agency take their cut and the mortgage lenders take their cut, we would be owing each month. If I can get things arranged properly though, I should (legally, you huge corporate arseholes) be able to pay the agency and mortgage lender before the remained is transfered to Sweden, so we don’t get taxed on money that is going straight back to the UK. We’d only get taxed on the money that’s coming in and staying in Sweden.
I don’t mind paying the taxes. It’s for everyone’s benefit, but I would loath paying tax on money that then has to go straight back to the UK to pay the bills. Yes, tax what’s coming in and staying – that’s fine by me.