REAL ESTATE & TAX

Top Tips to Buying a Property Abroad
The prospect of buying a property abroad is very exciting; it may be that you have visited a country many times for summer holidays and have really enjoyed the experience, or you may have visited a country for the first time and are so impressed that an instant decision is made to buy a property. However swiftly the decision to buy is arrived at, an overseas property purchase is a serious, not to mention expensive, matter and should only be made after due consideration.

It is wise, therefore, to take your time and weigh up sensibly the pros and cons of both the country and the particular area you are considering. Also, consider exactly what you intend to do with the property: is it purely a holiday home? Do you intend to let it out? And if so, will you be prepared to let it to members of the public? Who will manage the property for you if you do decide to let it to anyone who asks to let the property? When you retire, do you intend to live in this property? If this is the case, this raises a whole raft of questions for the future which must be addressed before you embark on your purchase.


When considering buying property abroad, it would be wise to read all you can about the past and present history of the areas you are interested in. When you settle on a country and area that you think you would like to purchase in, pay several visits to the area at different times of the year before buying. For example, what may be a delightful fishing village with a pleasant climate in the summer with charming restaurants to visit may turn into a bleak, rain lashed and cold place with absolutely no amusements in the winter. Do your homework: make sure that you really like the cuisine and culture, if you are going to take your holidays in the same country year on year. Establish whether there are adequate public transport links and suitable nightlife or family entertainment for your needs, as they may change over the years due to a growing family or maybe the need to bring an elderly parent with you on your annual visit.

Remember, your purchase is your second home and as such it is an investment. You must therefore understand the market you are buying into, discovering the speed and rate that local property is appreciating. Also, try and establish how saleable your new purchase is likely to be should you need to sell in a hurry, we never know what is round the corner and the need for liquidity may come to you unexpectedly.

Always cross-check the information you receive, do not rely on one set of property professionals as there may be a desire on their part to enhance the desirability of a given area. Find out as much as you can about the future expansion or regeneration plans for the area where you are planning to buy or build in. Many things can change the character of a region: the expansion of a local airport, for example, could ultimately mean that night or more frequent flights will make life unbearable. Check that the local amenities are able to serve English speakers: will there be an English speaking doctor available should the need arise? This is even more important if you are planning to eventually retire to the area. The practical side of your purchase is the platform for the years of enjoyment that should be yours when buying abroad. Your choice of legal advisor is absolutely crucial, the lawyer is the most important person involved in an overseas transactions as your whole venture could falter if a concealed problem is discovered during or after the sale.

There are too many horror stories circulating to ignore this important aspect of your purchase. It is wise to ensure that your legal advisor is a national of the country you are buying in, has local knowledge and most importantly, is truly bilingual. You need to know what is happening every step of the way. Finally, make sure your money is safe, ensuring your deposit is paid to a neutral third party, preferably your lawyer, and held in a client account until required to avoid problems retrieving your money should the project collapse. As an added precaution, ask your lawyer to make a company search on the builder, to avoid any unwanted surprises before your purchase.