When it comes to purchasing property overseas as a UK resident, navigating the real estate market of a different country can be tricky.
However, it isn't impossible; currently, over 400,000 UK residents own a property abroad.
If this is something you are interested in, then this post can help you to determine what happens next.
Are you looking to make a permanent move to your desired location? Are you after a rental property to list on sites such as Airbnb, or do you want a holiday home? This will play a big part in the type of property you are looking for, your budget and the complicated process.
When purchasing a property abroad, it is best to look into your tax obligations in the UK and the country you are buying in. For example, in Spain, there is a non-resident tax of 24% on the property, and if you are generating an income, you will need to pay capital gain tax in the UK on this, too or if you sell the property. However, Spain is currently home to over 300,000 British expats who pay considerably less tax as residents, not just holiday owners.
It can not be stressed enough how important it is to get independent legal advice when purchasing a property overseas. It applies in the UK, too; however, don't rely on the kindness of others and continually seek out your own professionals who can remain independent to help you to get the best advice and avoid any issues when purchasing a property.
Much like buying a property in the Uk, there are various funding options for purchasing property overseas. From being a cash buyer, remortgaging your current property, gaining an overseas mortgage or getting a mortgage in the country you buy in, there are plenty of options.
But before you max out on your budget, be aware of interest rates and currency fluctuations, so you know precisely how much you are spending before committing to purchasing.
Lastly, you need to remember there will be additional costs involved with purchasing a property abroad. You may also need to pay for other expenses, from your standard legal fees to estate agent fees.
In some countries, drawing up a will is required when purchasing property or taking out insurance is required. Other fees can include shipping costs if you are moving into the property, translator fees if you don't speak the language, international bank transfer fees, community fees, annual property taxes (as applicable in the US, for example), community fees if you are buying on development for maintenance and upkeep costs - again expected in the US where there are many HOA (Home Owner Association) groups.
While the thought of purchasing property for any reason can be exciting, it is essential to ensure you are aware of the different challenges and requirements set by other countries when it comes to purchasing a property. Once you are aware of all of the requirements and guidelines, you can move ahead with starting your search to find your dream home overseas.