Whether you want to retire to the sun, get a holiday home or become a landlord, buying a house abroad is an exciting adventure.
At a basic level, the steps of buying an overseas property are the same as buying a home in the UK.
You’ll need to carry out searches, negotiate a price, agree a contract with the seller and sign the Title Deed to reflect the change of ownership.
However, the legal process, buying costs and timescales can be very different to in the UK.
And there’s lots to think about with buying a house abroad, so let’s dive straight in.
In this guide:
Find a property overseas
Thinking about buying a holiday home abroad - or going the whole hog and living overseas? We've got property listings from around the world right here, just choose your destination.
Why buy a property abroad?
Maybe a week in the sun just wasn’t long enough and you want to make a permanent move, or have somewhere you can return to every year.
Common reasons to buy a house abroad are to:
Live there as your permanent place of residence, perhaps after you retire
Have your own holiday home in a destination you love
Rent the property out as a holiday let or long-term let
Invest in a price growth hotspot
How to fund an overseas property purchase
You can fund buying a home abroad by using:
Cash to buy the property outright
Equity you release from your current home
A mortgage from a UK bank
A mortgage from an overseas lender
Using cash to buy a house abroad
If you’ve got enough savings to cover the property purchase, using cash means you won’t need to worry about a mortgage.
You’ll own the property outright and it means you’ll save on paying interest on a mortgage.
Some sellers will find cash buyers more attractive, so it can be a good way to get ahead of the pack.
However, it’s important to know that you can afford the extra costs of buying a property abroad.
You also need to make sure that you won’t need access to the money. With your money tied up in your property, you won’t be able to release it without selling.
Before making any decisions, make sure you get independent financial advice.
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Releasing equity to buy an overseas property
If you have enough equity in your current home, you could remortgage to take some money out.
This could free up enough cash to put down a deposit on the overseas property or even buy it outright.
Equity is the value of your home that you own, after the mortgage.
Think about it as the amount of money you’d be left with after selling your home and paying off your mortgage.
Work out your equity in My Home
Getting a mortgage to buy an overseas property
Getting a mortgage from a UK lender
Some UK high street banks can give you an overseas mortgage, but you’ll need to check which countries they operate in first.
It might be easier to get a UK mortgage for a home in popular spots like France or Spain, while less mainstream markets might be trickier.
The benefits of going with a UK-based mortgage lender for an overseas home are:
you can sort everything out in your own language, avoiding translation challenges and costs
the mortgage process will probably be quicker as the lender will have access to your credit history
Your credit score might help your chances of getting the mortgage
Lenders usually require a higher deposit for an overseas property mortgage, upwards of around 20% or 30%.
Mortgage calculator
Work out what your monthly mortgage payments could be with our mortgage calculator.
Getting a mortgage from an overseas lender
You could arrange a mortgage from an overseas lender. You can go straight to them or via a specialist mortgage broker.
Overseas lenders may have more mortgage options for you than UK-based lenders.
They could also have stronger knowledge of the local housing market and the local laws about buying property from overseas.
Whether you go for a UK or overseas mortgage, take your time to compare mortgage products from different lenders.
Pay attention to the interest rate and repayment period, fees for setting up the mortgage, plus any early repayment or cancellation fees.
Make sure you understand the full agreement before signing, and don't forget to think about how currency fluctuations may affect your interest rate and repayments.
The most important thing is to get the mortgage that best suits your needs and capabilities.
The costs of buying a house abroad
Just like when you’re buying a home in the UK, there are costs beyond the property itself.
The costs of buying an overseas home can include:
Paying a financial advisor to manage your overseas tax payments
Paying a surveyor to check the property and provide a building report
International bank transfer fees and a bank-guaranteed cheque fee, which you should discuss with your bank in advance
Fees to arrange power of attorney if required
Insurance
Furniture and shipping
Legal fees to write or amend your will, which may be required in some countries
Translation fees (if applicable)
Connection fees for utilities like water, sewage and electricity
Waste and recycling collection
Community fees (such as if you’re buying on a large development)
You might also have to pay extra taxes depending on the country you buy in, like:
Annual property tax
Income tax if your rent out the property
Capital Gains Tax when you decide to sell in the future
Exchange rates for buying property abroad
However you decide to fund your property purchase, you’ll probably need to transfer large sums of money overseas.
The more competitive the exchange rate you can find, the more money you’ll save on the transfer.
We’ve partnered with Global Reach, an award-winning foreign exchange company, to help you make the most of your overseas transfers.
They may even be able to lock in an exchange rate for up to two years, protecting you against currency fluctuations.
Find out more from our Currency Zone.
Getting independent legal advice
We always recommend working with a specialist and independent property lawyer before you buy a home abroad.
Avoid using a lawyer who has been recommended by the seller, developer or estate agent.
Make sure they can speak both English and the local language and that they know all the laws and regulations of buying a property in the country from overseas.
Find an outstanding conveyancer
Use our quick and easy comparison tool to get matched with the best conveyancers in the business.
Where’s the best place to buy property abroad?
The best place to buy property abroad will come down to what you’re hoping to get out of the investment.
According to ‘A Place in the Sun’, Spain is the most popular spot for Brits buying abroad, followed by France, Portugal, Italy and Greece.
It’s fairly easy to find expat communities in these countries if you’re gearing up for a sun-filled retirement.
They also tend to have English-speaking locals, excellent amenities, a familiar European culture and brilliant weather.
If you’re thinking of something a little further from home, Cyprus, Turkey, Bulgaria, the USA and even St Lucia make the top 10 list of places Brits are buying a home abroad.
Malta, Tenerife and Bulgaria are also attractive places for expats, retirees and holiday makers buying a home abroad.
Buying a house in Spain
If Barcelona’s stunning architecture or the turquoise waters of the Balearic Islands have got you itching to buy a house in Spain, you’ll be glad to know it’s a common and fairly simple process for UK buyers.
Just keep in mind that if you plan to rent out your holiday home in Spain for some of the year, you must pay 24% tax on rental income - rather than the EU rate of 19%.
You also cannot deduct any expenses, but you can declare this and your UK tax bill will be adjusted.
Search overseas property for sale in Spain
Buying a house in France
Dreaming of your very own country chateaux or maybe a sophisticated Parisian apartment?
UK owners are more than welcome in France and there are no additional checks or applications when buying a house from the UK.
However, if you plan to make a permanent move or use your property for more than 90 days, you’ll need to look into getting a visa.
And keep in mind that you’ll have to pay social charges of 17.2% on any rental income on a holiday home in France.
Search overseas property for sale in France
Buying a house in Cyprus
As Europe’s sunniest island, Cyprus is a sure bet for the quintessential Mediterranean lifestyle.
When entering into a sale, you’ll need to apply to the Council of Ministers for permission to buy the property.
And if you want to stay in your property for more than 90 days in any 180 day period, you’ll need to get a visa.
Search overseas property for sale in Cyprus
Buying a property in Greece
Sun-bleached ruins, wonderful cuisine and the aquamarine Aegean - there’s no question Greece is a fantastic place to buy a house.
The Golden Visa scheme is a great way to buy property in Greece, granting you a five-year residency permit.
You’ll need to spend at least €250,000 on your Greek home, but you don’t have to live there permanently and you can rent it out.
Search overseas property for sale in Greece
Checklist: what to triple check before buying a house abroad
Reckon you’ve found the perfect property abroad?
Here are all the things the UK government recommends checking (and triple-checking) before you go ahead:
Research and follow local laws on buying and renting out property
Get written confirmation of what has been agreed in any negotiations and always insist on a paper (preferably not electronic) receipts
Check that the seller or developer owns the title deeds to the property or land and can transfer them to you
Check that the deeds to the property or land have not been offered as collateral for any loans
Check whether the owner has outstanding utility bills or local tax demands that you may be liable for on purchase of the property
Check that all utilities (water, sewage, gas and electricity) are connected and that you will be able to use them
Talk to other property owners in the area or on the development to establish if there are any issues you should be aware of before purchasing (such as floods in winter, lack of water or electricity supplies in summer)
Ask the developer to show you some projects that they have completed and talk to owners of properties on these developments to see if they have had any problems
Establish whether the developer has outstanding commitments to utility suppliers to bring water, sewage, electricity etc to the development.
What to do if things go wrong
If you think you've been the victim of fraud and don't have an insurance policy or bank guarantee, get independent legal advice about taking action through the courts.
The Foreign, Commonwealth & Development Office (FCDO) can't get involved in private legal matters overseas, but they do provide lists of English-speaking lawyers, interpreters and translators.
Buying a property abroad - GOV.UK