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

JASMINE BIRTLES, right, TV financial expert and founder of MoneyMagpie.com, offers her advice for buying abroad.

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 financial watchdog here so you’re not protected if you run into problems with it.

Deposits tend to be higher than at home – often 30% to 40% of the entire value of the property – 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, found themselves trapped in properties they cannot sell. Prepare yourself for a long-term investment that may take many years to see a return.

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

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

When you eventually 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.