Foreign property investors have been urged to be considerate of the potential pitfalls of claiming a tax waiver on earnings from furnished holiday lettings (FHLs) within the European Economic Area.Comments from Holidaylettings.co.uk's Kate Stinchcombe follow the government announcement that tax breaks would be extended to cover FHLs outside of the UK until early 2010.Responding, Ms Stinchcombe reminded foreign property investors that, where they have received an undeclared income from FHLs in previous years, applying for a break under the new rules may simply alert HM Revenue & Customs to this fact."You could be caught out for the previous years that you have received rental income and not declared income. There are benefits but there are always pitfalls," she commented.PKF Accountants & business advisers have also this month declared that foreign property owners could stand to benefit substantially from registering overseas property as a FHL, although the tax breaks will be wiped out in the 2010-11 tax year.