If you are thinking about or planning to buy a property overseas and to live overseas on a permanent basis, Overseas Property Centres offers a range services that will help you through the process. Our knowledge database contains a wide range of topics related to buying a property abroad, everything from the legal processes, the cost owning, letting and living in your property as well as 100’s of articles about popular destinations for overseas property holiday home owners and investors alike.
You browse articles about buying and owning a property overseas in our Regional Property Guides section, use the quick links below or just enter your keywords in the search box on the upper right of the screen.
Remember Overseas Property Centres carries out extensive checks on anyone we partner with or services we promote on our web site, this goes for overseas property developers and agents as well as anyone you might go to for financial, mortgage, personal Tax planning and Legal advice. Our experts are on hand to answer or get the answer to questions you may have about owning or buying a property overseas, so if you prefer the personal touch why not contact us now on 0845 257 3737 and let us help you every step of the way.
Chris Richards, Managing Director of Overseas Property Centres, says “Many people buy a property overseas as a lifestyle choice or to spend time when they retire. You have probably already thought about what is important to you when buying a property overseas to spend time when you retire or for your lifestyle choice. Below are some of things that people who have already bought or are considering buying have considered. And it all adds up to Location, Location, Location”
If being able to get back to the UK quickly and make easy for friends and family is important to you, make sure you have the facts on how long it takes to get to and from the UK. It is not just the flight time but the time from your overseas location to the airport. On the other hand you may be choosing a home which is close to people you already know so travel is less important. Learn more about Travel
Many people seeking to move abroad are planning or have retired. Learn more about Retiring Abroad. If you are moving abroad to a sunnier climate for health reasons you will want to know what the local health service is like and whether you are covered for all eventualities. Get more on Health Services
Are you looking for a property overseas where you can be close to other people from the UK? Where your family and friends can visit easily? Or perhaps you are looking to get quality time away from the usual. Being able to follow an interest such as golf, a passion for culture or be able to put into practice a foreign language. See more at Enjoying
Whatever the case make sure you have done your homework on what is important to you. Find out more by reading the knowledge articles on:
General Information Legal Living Moving Property
You may be spending all or a large part of the year at your overseas property. So knowing the cost of living is important. If you need to get an electrician to fix something how much will it cost? How does the cost of food and drink compare with the UK? So it is worth checking out the facts.
Check the Cost of Living in different countries.
Learn more A Guide to buying an Overseas Property
Browse Lifestyle property at the following top countries for moving abroad.
Australia Canada Cyprus France Italy Portugal Spain NewZealand
Retiring Overseas
The Institute of Public Policy Research suggests in a report that one in five pensioners will leave Britain to live overseas by 2050. These findings are supported by surveys from Age Concern, Saga and the ONS. It is relatively straightforward for UK residents moving to any of the European Economic Area countries (that is countries with full EU membership plus Iceland, Liechtenstein and Norway). In these countries UK citizens enjoy mutual residential rights, which means, that you can live in any of these countries, collect UK state pension in the local currency while it increases annually the same as it would in the UK.
Planning to retire to a non-EEA country is more complicated and requires discussion with the Foreign and Commonwealth Office about the particular regulations of that country.
Knowledge is Power
Gordon Lishman, Director-General of Age Concern says "Retiring abroad can be a great experience for many but the key to a successful move is knowing what to expect.” "Thinking ahead about your situation changing and what health and social care services and benefits will be available may help people to avoid potential problems."
When thinking about retiring abroad you should look at pensions, tax, health, and property.
1. Pensions
You can get a forecast of your state pension entitlement from the HM Revenue & Customs (HMRC) or The Pension Service. UK residents retiring in any EEA country will receive full state pension including annual increases. You can find out more at Directgov
Most countries outside the EEA freeze pensions at the level of first claiming – this includes Australia, New Zealand and Canada. Private pensions should be payable worldwide but check with individual companies as some won’t pay into non-British bank accounts.
2. Tax Issues
Tax matters tend to be very complex so it’s best to seek professional adviceTax laws are different in different countries, so how much tax you’ll pay can vary significantly in different countries - so do your homework. The HMRC lists the tax rules for many countries.
Also remember to look out for the regulations governing income tax, inheritance tax, wealth or capital gains tax, gift tax, and if there are any extra taxes that you are liable for.
It can be worth making sure you are classed as non-resident in the UK as this can have bearing on how much tax you’ll pay. Generally, to establish this with the HMRC, you have to spend less than 91 days per year in the UK, averaged over a period of four years. Once you have non-resident status, you will be exempt from paying UK tax on income earned outside the UK but still liable on income generated in the UK e.g. from letting out a property. More on this at Directgov
3. Health Matters
The International Pension Centre (IPC) in Newcastle deals with queries about UK benefits for overseas customers.
Once you arrive in your new country, register with the local authorities regarding welfare and health entitlements. If you are of pensionable age, ask the IPC for an E121 form which allows you the same healthcare entitlements as the locals - this usually involves paying for some if not all of your treatment so it’s best to also have private medical insurance. Those under retirement age will need an E106 form which entitles you to two years healthcare, after that you will need private medical care until either you or your partner reaches retirement age.If you are receiving benefits such as disability allowance or widow’s pension in the UK, you will probably still be entitled to these elsewhere in the EEA, and in some non-EEA countries.
Don’t forget wills, these are very important. It is advisable to do this in your new country of residence as one drawn up in the UK could be dearer and liable to tax disadvantages. The best way of doing this is to seek professional advice from a lawyer specialising in your particular country’s regulations.
4. Funding the Property Purchase
It is always worth taking Mortgage and Finance Advice as to the best way to fund your overseas property, here are some of the main options:
a) Buying outright - this is the simplest method.
b) Re-mortgaging your existing home – if you have enough equity in your British home and don’t mind holding on to the property, this can be a good option.
c) Equity Release – allows you to release the equity in your home. Various schemes are available so seek advice to find out which may be suitable for you, and check with the HMRC if the income released is taxable.
d) Foreign Mortgages – It is becoming more common to obtain a foreign mortgage in the UK, this has the advantage of preventing language problems. If organising a mortgage in the country where you’re purchasing, hire an international broker and an independent lawyer who speak English. See more on Legal Advice