Buying Abroad?

Buying Buying a property abroad takes time and careful planning.

Once you have decided to move to a particular country, go to the relevant country’s embassy or consulate. There are a number of things they can do for you, including advising you about work permits and taxation issues.

Check out the planning permission rules in the country you are moving to. It may be that you will need extra permission to renovate the property or that there are restrictions on what you can do while living there.
 

Get a good Lawyer
Get a good lawyer in the country you are moving to; he or she should be able to speak fluent English. However, do not rely totally on your lawyer: it is essential to do your own research. Always get a second opinion.
 

Try before you Buy?
Consider renting a home in the region first so you can get a feel of how tenable living there will be. Transport links, shopping, leisure – all will become clear once you actually live there.

Keep some property back home until you know you will want to live abroad.

Go there out of season before buying property abroad. What looks like an attractive place to live in summer can be a very different proposition out of season.
 

Don't pay more for being a Foreigner?
Watch out for ‘local’ versus ‘foreign’ prices. A reputable estate agent will not discriminate, but some or even most try to will.

If at all possible, talk to expats who have already bought property in the country. They will have the inside knowledge you need to make a sound decision.

Do not forget to include a contingency fund as part of your overall financial arrangements. You do not know what will happen to your property once you are there.

Set up a bank account in the country before you start looking to buy property. It will save time and hassle later.
 

Will you get a Pension?
If you are planning to buy a property to retire, check out whether the UK state pension or tax credits will be paid to you in full if you are living in a different country.

Can you actually live in your property?
Having property in a country does not mean you will necessarily qualify for residency or domicile in that country. Residency and domicile depend on other things, such as length of time in the country and where you earn your living.

If you are buying off-plan (i.e. from a property company’s prospectus for a house that has not yet been built) then make sure that insurance and indemnity clauses are included in case the worst happens and the firm goes bust.
 

Federation of International Property Developers
Reputable international property companies will probably be members of the Federation of International Property Developers (FODPAC).

All countries, even those within the EU single market, will have slightly different regulations for foreign property purchases. Do not assume that because the country is in the EU it will be like back home.
 

Does your dream house have clear title?
Make sure that the property you are buying has ‘clear title’ – meaning that the vendor is actually in a position to sell. Some properties in Northern Cyprus, for example, are in dispute following the Turkish Cypriot takeover and some Greek families in the south of the island have made claims on properties in the north.
 

Does the property have debts attached to it?
Ensure also that the property you buy has no unpaid debts associated with it or secured against it by previous owners. This is especially important and must under no circumstances be overlooked. If the property has debt secured against it or if a lender has a charge over it, you could end up losing it or paying off someone else's debts.

Money Never Sleeps
Exchange rates fluctuate every minute of the day, 5 ½ days a week. The market does not open and close as such, it just moves from London to New York to Asia to London and so on, as they say “Money Never Sleeps”.

Most people simply do not have time to watch the market day and night to optimise the exchange rate they secure for transferring funds abroad, and that can mean less money for their new life overseas. One way to beat this problem is to place a ‘limit order’ with a foreign exchange provider targeting a more advantageous rate.

What is a limit order?
A limit order is a commitment by you the client to buy (or sell) one currency in exchange for another, at a pre-agreed rate.

For example, you may not be willing to exchange Pounds for A$ at what might be the current rate of GBP/A$ 2.4700 but be willing to exchange at 2.5000, so you call a foreign exchange dealer and arrange a limit order to sell X Pounds for A$ at 2.5000. You then have to wait for the prevailing rate to reach 2.5000 before the transaction is completed, at which time it will be binding on you.