Do’s and dont’s…our expert’s essential tips

Financing your foreign property

All main high street banks offer international mortgages, but do find out which countries they operate in as generally they provide mortgages only in countries where they have an office.

You can get a mortgage with an overseas lender through a specialist broker, but overseas lenders are not covered by the FCA (Financial Conduct Authority) so you’re not protected if you run into problems with it.

Borrowing in a foreign currency is risky – you are subject to the vagaries of exchange rates. After Brexit, we have no idea what could happen to the pound, particularly in relation to the euro.

Deposits tend to be higher than in the UK – often 30 to 40 per cent of the value – and non-refundable, so be sure before paying out cash.

Learn from the mistakes of others

Ensure the person or company selling you the property actually owns it and had permission to build the property. Check that you have the right planning consent and licences, your property has the correct title and you are registered as the official owner.

Use an independent lawyer – ideally in the country itself – with no connection to the developer or agent. They need to be fluent in English and the local language.

Beware of property development companies in popular resorts, particularly

when buying off-plan. Don’t succumb to pressure to sign up with a deposit before you’ve taken independent advice.

Don’t expect the price of your property to rise. Many buyers in Spain, for example, are trapped in properties they cannot sell.

Don’t forget you’ll pay income tax if you rent out

If you’re going to rent out your property, you’ll have to pay income tax. In fact, you may have to pay tax both in the country itself and in the UK. Check with your local lawyer about this.

When you sell the property, you will have to pay capital gains tax if it’s not your main home. In some countries this is reduced or waived depending how long you have owned the property.

Be aware that your heirs might have to pay inheritance tax on your property when you die, depending on which country it’s in.