When you decide to buy a home in a foreign country it helps if you know what country you want to buy in. That may sound like a ridiculous statement to make but we have met many people who decide to buy a home abroad, whether as a property for vacation rentals, a holiday home or even a property for permanent residency, yet they have not decided where exactly to buy or even the implications of buying in a foreign country. In this article we will try to explain the importance of not buying on impulse and run through some of the most common problems when buying a home in a foreign land and how best to deal with them.

Buying a property for the specific purpose of vacation rentals is a slightly different matter and is dealt with in another section (see Buying to Rent). Here we will concentrate on buying a home where you intend to live permanently, or a least for most of the year. Because each country has its own laws and regulations on this topic we will have to generalize because the difficulties can be so diverse in their nature from country to country.

LOCATION

There are those who look at Eastern Europe because of the relatively inexpensive cost of buying there, including the Black Sea resorts of Bulgaria and Romania. Some may decide that they want to live on the Mediterranean Coast but again can’t decide exactly where. Will it be France, Greece, Italy, Spain, Cyprus or maybe Turkey, possibly even North Africa? Others will look to the United States, possibly New England for its beauty or Florida for the Magic of Disney, the marvelous golf courses or the magnificent sunsets of the Keys? Others may be attracted to the Pacific West Coast and others to the delights of Asia or the mystique of the Orient but, wherever you decide to buy you should examine just how your new home will affect your future and your lifestyle.

When deciding where to buy, you should try to divorce yourselves from memories of the idyllic holiday you had at a particular place and imagine whether you could live there permanently. It may have been perfect at the time you were there but it could be a very different experience at other times of the year.

THE LEGAL ASPECTS 

You should also consider the laws of each country relating to ownership of property by foreign nationals. Not only should you consider the laws of ownership but also any laws restricting immigration and Visa restrictions limiting the length of time that Foreign Nationals are allowed to remain in that country (as with visitors to the USA). Most of the Foreign Embassies in your own country will be able to provide any information you require. You should also consider using the most powerful reference tool in the world, the Internet, to search for this type of information. Some of the forums can give you excellent feedback.

Wherever you decide to go you should seek out a reputable lawyer within that country who can answer all of these questions and provide you with a smooth and hopefully uneventful purchase process. This may not necessarily be the cheapest lawyer you can find but the extra cost could amount to monies well spent. A list of reputable lawyers can normally be obtained from your own Embassy in the country where you have chosen to purchase.

WHAT ELSE COULD YOU EXPECT TO PAY?  

Some countries impose a “wealth tax” on foreign residents and there are numerous other taxes that may be levied that vary from country to country. With things such as property taxes, community charges, inheritance taxes …… it would be prudent to seek professional advice rather than leaving it to chance and later being embarrassed by unexpected expenditure. In some countries Wills are also essential to avoid having to pay huge death duties.    

HEALTHCARE  

A further consideration should also be the different standards, costs and arrangements for healthcare. There are reciprocal arrangements between some countries for healthcare, particularly throughout the European Union. Standards will differ from place to place and a good health insurance should never be overlooked. This is essential in some countries such as the United States. You should even consider the need for funeral plans so that your loved ones are not presented with a potentially huge outlay after the event.

INTEGRATING WITH YOUR NEW COMMUNITY