This is an extract from our best-selling 'Property Tax Secrets 2007' publication. Containing a wealth of information and advice on property taxation in the UK and Europe, Property Tax Secrets 2007 is a must-read for all property investors. To buy this title - either in eBook or print form - click here to be taken to the Property Secrets shop.

Despite several complicating factors - for which each individual needs to seek advice - the UK tax position on overseas property investments depends on two main factors:

• The double taxation treaty between the UK and the country concerned.
• The tax laws of the country in which the property is located.

For instance, the double taxation agreements between the UK and Spain or France, usually grant the right to tax gains on property to the country in which the property is located.

Therefore, if you purchase property in Spain or France, the property will in nearly all cases be assessable in Spain or France. But the rules in each country will be different.