For those with a sense of adventure, the idea of buying property abroad can be both exhilarating and daunting.
On one hand, the thought of owning a piece of paradise in a new country is incredibly exciting, but on the other, the prospect of navigating unfamiliar laws and regulations can be overwhelming.
So with this guide, we hope to demystify the process and make it accessible to anyone who is willing to undertake this exciting adventure.
Are you fed up with the predictable routine of life? Do you dream about having a place to call your own in another country? If yes, then buying a property abroad might be the best decision you ever make.
You can explore a new culture, immerse yourself in a new language, relish the cuisine, and meet new people.
And you don't have to go to the most lavish locations to have your dream property. There are many affordable countries that offer the same luxuries as more popular destinations.
Apart from the excitement of exploring a foreign country and its culture, buying a property abroad can also be a great investment opportunity. Not only can you have a holiday home to enjoy yourself, but you can also rent it out and earn extra income.
If you’re looking for a place to soak up the sun in your retirement years, then Spain is an obvious choice. The country boasts a warm climate, beautiful beaches and plenty of cultural activities to keep you entertained.
But if you are looking for an up-and-coming area, then Portugal, specifically the Algarve region, may be for you. The area has seen a recent boom in development and offers stunning coastal and countryside properties.
Alternatively, there’s the option to head further overseas. Italy, the United States, Turkey, Bulgaria and Malta often feature in the top 10 places where Brits are buying property outside the UK.
Ultimately, the best place to buy a home abroad depends on your individual needs and preferences. So do your research, visit different locations, and try and imagine what it would be like to have a more permanent foothold in your favourite holiday destination.
Often property prices are lower outside the UK – the average cost of a flat in Europe is £181,000. Greece and Cyprus are particularly competitive, but costs can vary greatly. The main thing to consider is whether the property is within your budget and how it compares to similar homes in the same area. You'll also need to factor in any additional costs such as legal fees and surveying costs.
You’ll also need to consider the ongoing costs of owning a property abroad. Will you need to pay for maintenance and repairs? What are the local property taxes? Is there a property management company you can hire, or will you be responsible for managing the property yourself?
Currency exchange rates can also impact the cost of buying a home abroad. A fluctuation in rates can have a significant impact on the final price you pay, so it's important to keep on top of these and factor them into your budget.
It's also important to consider the cost of financing your property purchase. Will you need to take out a mortgage? If so, what are the interest rates and what are the repayment terms?
We can help you answer these types of questions.
One of the most common queries that arise is whether you have to pay Stamp Duty when purchasing a property in a foreign country.
Essentially, this depends on various factors, including the country you’re purchasing in, and the value of the property you currently own.
As a general rule, if you own two properties you will still have to pay extra Stamp Duty.
You also need to consider Capital Gains Tax on overseas property. Capital Gains Tax is paid when you sell an overseas property and make a gain on the sale.
Brexit has changed the game when it comes to buying property in the EU. You can still buy property in Europe, however, different countries have different regulations. In Austria, for instance, non-EU citizens must undergo an additional approval process before they can purchase property.
The main change is how much time you can spend at that property. As British citizens we used to have year-round visa-free access. However now we can only spend up to 90 days within any 180-day period without any prior paperwork.
If you need to stay longer, then you’ll need to apply for a visa. But there are various options available. You may be able to qualify for a ‘golden visa’. This is a resident visa that is granted in return for large investments in that country, such as property purchase. EU countries that offer this option include Spain, Greece and Malta.
Most people in Britain will be familiar with the steps of buying a home in the UK, however, as a buyer from a foreign country, the buying process may be different. However, many high street banks offer an international mortgage service, which could help.
It’s important to factor in the exchange rate, and how this could fluctuate, as this will impact your repayments. You may also have to deal with additional charges, such as foreign transaction fees or taxes.
This is something we’d be happy to help with.
In conclusion, buying property abroad can be an exhilarating adventure and a sound investment. However, it is not a decision that should be taken lightly. There are many factors to consider, including legal requirements, market trends, and cultural differences. Taking the time to research and consult with a trusted professional can save you from potential risks and headaches down the road.
You can book an online meeting with one of our advisers at your convenience here.
