When it comes to buying overseas property as a UK resident, navigating another country’s property market can be tricky.
However, it is not impossible; currently over 400,000 UK residents own property overseas.
If you’re interested, this article can help you figure out what happens next.
1. What type of property do you want?
Are you looking to move permanently to the location of your choice? Are you looking for a rental property to list on sites like Airbnb, or do you want a vacation home? This will play a big role in the type of property you are looking for, your budget and the complicated process.
2. Taxes
When buying a property overseas it is best to check your tax obligations in the UK and in the country you are buying from. For example, in Spain there is a 24% non-resident tax on property, and if you are generating income you will also have to pay capital gains tax in the UK 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 holidaymakers.
3. Legal advice
The importance of obtaining independent legal advice when buying property overseas cannot be overstated. This also applies to the UK; However, don’t rely on the kindness of others and continually seek out your own professionals who can remain independent to help you get the best advice and avoid any problems when buying a property.
4. Funding
Just like buying property in the UK, there are different financing options for buying property overseas. Whether it’s being a cash buyer, remortgaging your current property, getting a mortgage abroad, or getting a mortgage in the country you’re buying from, there are plenty of options .
But before you max out your budget, be aware of interest rates and currency fluctuations, so you know precisely how much you’re spending before you commit to buying.
5. Additional costs
Finally, you must remember that there will be additional costs associated with buying a property overseas. You may also have to pay other expenses, ranging from your standard legal fees to estate agent fees.
In some countries, writing a will is mandatory when buying real estate or taking out insurance. Other charges may include shipping charges if you are moving into the property, translation charges if you do not speak the language, international bank transfer charges, community charges, annual property taxes (as applicable in the US, for example), community fees if you buy on the development for maintenance and upkeep costs – again expected in the US where there are many HOA (Home Owner Association) groups.
Conclusion
Although the idea of buying a property for whatever reason can be exciting, it is essential to ensure that you are aware of the different challenges and requirements set by other countries when it comes to buying. a property. Once you are aware of all the requirements and guidelines, you can start your search to find your dream home abroad.
