It is tempting to want to retire abroad or buy a second home. There is no shortage of advertisements about the merits of home ownership in Morocco, Thailand, Bali, Spain…
Yet, buying overseas caution is required. Several rules must be followed to avoid scams and failures.
Tip 1: Enquire about the country.
Many real estate sites are specialised in selling properties abroad; Some even offer services for expatriation.
On top of these online resources, real estate forum are held frequently around the world. Among these are the Moroccan Real Estate Fair, the Tunisian Real Estate Fair and the Portuguese Real Estate and Tourism Fair…
Take advantage of all these professionals to provide you with all the information you need including: taxation, advantages granted to foreigners, geopolitical context, state of the local real estate market with the conditions of reselling properties in the country you choose.
Tip 2: Go and check out the place!
You should always go see a place and take your time to visit. Don’t buy on plans or the Internet, whatever the quality and the amount of the investment.
The opportunities are always attractive, but once there, you can discover many issues. Location, non-accessible beach, lack of shops, noise problems… Etc.
Tip 3: Pay attention to the applicable legal framework.
The rights applying when signing the contract of sale will be that of the host country. Check for differences. For example, certain countries don’t have a 7-day right of withdrawal.
The laws applicable to guarantees, inheritance, taxation and spouse rights are often different from other civil laws. For example, in Italy or the Netherlands, donations between spouses are not recognized. Your only solution in this scenario would be to write a will with a solicitor from the country in question.
The notion of property may even diverge from what you are use to. In Morocco, some available properties are attached to the Koranic law. So in principal, they can be acquired only by Moroccans. Or in Thailand, you can not own the land, only buy a house. This right is solely reserved to it’s citizens.
Basically,get in contact with a solicitor who will rely on a network of local correspondents to answer your legal questions.
Tip 4: Enquire about taxation.
Before investing abroad, find out about the tax impact of such an acquisition.
Question whether the country you have chosen has signed a bilateral tax treaty with your country, otherwise, you will be liable for taxation purposes in 2 countries. If an agreement is signed, you will be taxed by the country where you reside and receive a tax credit for the same amount in your country of origin.
You might also get lucky like the French in Portugal who can enjoy the status of non-habitual tax resident. A situation which allows them to benefit from competitive tax advantages for 10 years. By the way, Portugal is currently the most interesting country to buy in, mainly for goods between 150,000 and 300,000 euros
Tip 5: Get the right funding.
This question should be your last step in your research.
You have 2 choices: in your country or abroad.
Beware, foreign laws are often far less protective for borrowers. Foreign banks frequently ask for more substantial contributions, at least 30%.
Then if you choose to go local, banks will require substantial guarantees for such an acquisition, such as a mortgage on real estate or a pledge on an investment, often life insurance.
So compare the offerings and see which one has the best financial outcome.
That’s all for us today! Remember be careful and do not to rush. Everything great takes time. It’s all a process to get that dream life you want.
@internationalrealestatefocus
internationalrealestatefocus.com