Costs

The cost of moving abroad will invariably be different for each country and the best plan for buying abroad depends on the destination.  Each country has its own legal system, property taxes - and house-buying procedure.  It is therefore important to find a professional and fully qualified lawyer either in the country in which you are buying or here in the UK where there are specialists that deal in overseas property purchasing.   If you feel that you are in safer hands by also using a UK Solicitor, you will need to allow for his fees too.

France

In France a budget between 8 and 11 per cent of the property price for extra fees and charges is normal.  The final cost depends on the age and value of the property.  The Notaire in France acts for both sides and fees will vary from 3 - 7.2%.

Spain

In Spain the property taxes and fees will equate to approximately 10% of the property purchase price.  Buyers pay a transfer tax called ITP, charged at 6% on sales of existing properties.  And, on new homes the tax is IVA (Spanish VAT) and this is usually 7%.  In addition there are Notary and Registration charges, and Plus Valia.  Up until a year or so ago under -declaration of the property value was a common practice when purchasing.  The problem here is that when you sell you end up paying more with a tax called Plus Valia, a local tax on the rise in the value since the property was last sold.  The moral of this story is that it pays to be accurate in the first instance.

Portugal

In Portugal property taxes and fees amount to around 12 percent.  This is made up of a 10% Sisa tax plus other charges such as legal fees, etc.

Cyprus

As a non-Cypriot you are entitled to Freehold ownership up to a maximum of 2675 sqm (if you are of Cypriot origin there are no restrictions).  You are required to pay for your property in foreign currency - personal cheques, bank drafts and transfers are all acceptable.  Property transfer fees are scaled between 3 and 8% of the purchase price.  The purchaser is also liable for stamp duty which is 1.5 pounds per thousand up to 100,000 Cy Pounds and then 2 pounds per thousand thereafter.  An annual Property Tax is payable based on the value of the property.

South Africa

All money brought in to South Africa must come through the South African Reserve Bank, via an authorised banker.  If you later sell the property you may take this money out of the country, together with any capital gains you have made.  Once the Offer to Purchase is signed by both parties it becomes the Deed of Sale and is legally binding.  Transfer fees are calculated on a sliding scale, and usually amount to between one and two percent of the property price.  Transfer duty for an individual was eliminated on properties with a value below R 100,000; between R 100,001 and R300.000 it is 5%; and for properties valued at R300,001 and above it is R 10,000 plus 8% on the value above R300,000.  Estate agency fees are usually paid by the seller at between five and seven per cent.  If you are taking out a mortgage there will be additional costs for mortgage bond registration fees, stamp duty and inspection fees for the bank.

A New Life in a New Country

Every year, the dream of starting a new life abroad weaves its magic spell, drawing ever more Britons to set up home in continental Europe or beyond.  The reasons are not hard to understand: the pace of life may be that much slower, the climate more congenial, the scenery spectacular and the cost of living considerably lower.  It's not difficult to make the choice between putting up with another predictably damp British winter - or summer - and relaxing on a sunny beach or in beautiful unspoiled countryside.

As a new homeowner abroad, you can look forward to a friendly welcome; all the most popular countries enjoy warm relations with the UK, and communications are generally excellent; air travel especially is easy, frequent and often inexpensive.

It has never been more straightforward to set up home in Europe; the EU and the single currency have made living and working much easier for UK and Irish citizens.  If Britain joins the Eurozone, it could be easier still.

Of course, living in a different country with perhaps unfamiliar customs and manners can present new challenges, but for most people it's an exciting and rewarding adventure.  Naturally, gaining a working knowledge of the appropriate language can make a great deal of difference, and it's well worth making the effort.  You could attend evening classes in your home country, or study where you have bought your new home - perhaps encouraged with a little sightseeing and wine tasting along the way.

As a general rule, if you spend less than half the year in your chosen new country, you are classed as non-resident.  If you decide to spend most of your time there, for work or retirement, you will be considered a permanent resident, subject to that country's tax system.  In either case, as a property owner it is worth making a new will abroad and reviewing your English one.  If appropriate, it is also a good idea to set up a Euro account here or where you buy your home.

Worth reading:

Live & Work in Spain and Portugal by Jonathan Packer, published by Vacation Work, price £ 10. 99

The Blevins Franks Guides to Living in France, Spain or Portugal and can be found at rose.rtzsimons@blevinsfranks.com