Is rent taxable if I make mortgage repayments to an oversea lender?
If I’m understanding you correctly, you’ve been told that switching your mortgage to an overseas lender will prevent you from getting a tax deduction from your rental income in respect of the interest paid. Your broker has got that wrong. It doesn’t matter where you pay your interest, it’s still a deduction. I think you would benefit from having a word with your local tax office when it comes to completing your tax return. No offence, but your question sounds confused – and if this same broker has advised you on other tax matters there may be mistakes all over the place. For instance, it isn’t the case that your rent isn’t taxable. It is taxable. Right now it may just so happen to be entirely covered by tax-allowable expenses bringing the net taxable figure to zero, but that’s not the same thing at all. Assuming that it’s exempt from tax could get you into trouble if your circumstances change such that the net taxable figure is no longer zero!
