The recent U.S. election has introduced changes that are prompting many people to explore the possibility of moving abroad. Whether it’s for lifestyle improvement, investment opportunities, or a fresh start, purchasing property internationally is an exciting yet complex decision. For those looking to gain residency abroad, diversify their assets, or invest in stable real estate markets, INHOUS offers a global network to guide you through each stage. In this post, we’ll break down the main considerations and next steps for anyone considering relocating internationally.
1. Understand Visa and Residency Requirements for Foreign Property Buyers:
If you’re considering buying property overseas to gain residency, one of the first steps is understanding visa and residency requirements in your desired location. Some countries, particularly in Southern Europe and the Mediterranean, offer “Golden Visa” programs, where real estate investments can grant residency. Other locations, like Dubai, provide investor-friendly options that attract foreign buyers. Since visa eligibility varies, researching options can help you narrow down your choices based on lifestyle, tax implications, and residency benefits. INHOUS has the expertise to help navigate these requirements.
2. Explore International Real Estate Markets and Property Types:
Understanding the local real estate market in your target region is essential. Some markets, such as those in Europe, cater to buyers seeking coastal or rural homes, while others, like London’s luxury property market, are better suited for urban investors. Clients often weigh factors like property type, pricing trends, and long-term investment value. INHOUS connects clients with in-depth market insights, whether you’re seeking a vacation home, rental property, or permanent residence abroad.
3. Determine Your Budget and Financing Options for Buying Property Abroad:
Purchasing property internationally can be complex, particularly in terms of financing and taxes. Mortgage rules, tax structures, and ownership costs vary significantly from country to country. Here are key points to consider:
a) Mortgage Rules:
Many countries have unique requirements for foreign buyers. In some places, non-residents face restrictions or may need a larger down payment. Partnering with a knowledgeable mortgage specialist can help you understand the criteria and navigate loan options available to international buyers.
b) Foreign Tax Implications:
Taxes on property abroad can differ considerably from domestic tax systems. In addition to standard property taxes, some countries impose tax taxes specific to foreign owners, such as stamp duty, capital gains tax, or annual wealth tax on foreign-held assets. Understanding these tax obligations upfront is crucial to avoid unexpected costs.
c) Ownership Costs and Annual Fees:
Many international destinations have maintenance fees, local taxes, and community charges that can add up over time. Budgeting for these recurring costs is essential to prevent any impact on your property’s profitability or your personal finances.
Consulting with international financial advisors is invaluable for clarity on these factors. INHOUS works with seasoned advisors and mortgage specialists to guide clients through foreign tax considerations, financing options, and budgeting essentials. This approach ensures clients are well-informed and prepared, making their international property purchase as seamless as possible.
4. Begin Your Overseas Property Search with Local Connections:
Once you understand the legal and financial framework, start your property search with trusted local contacts. This phase is where on-the-ground connections become invaluable, from choosing the right area to navigating negotiations and regional laws. INHOUS’s global network includes specialists across Europe, Dubai, and London, providing clients with local expertise and a curated selection of high-value properties.
5. Consider Long-Term Residency and Lifestyle Adjustments Abroad:
Beyond logistics, moving overseas often requires lifestyles adjustments. Each country offers unique benefits, from high-quality healthcare and education to favourable tax arrangements. Take time to assess the day-to-day realities of life in your new location, from language and local customs to available amenities. INHOUS connects clients with expats and locals who provide first-hand insights, making your transition smooth and enjoyable.
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Tenancy charges may vary, depending on the agreement we have with you, so it’s best to ask the INHOUS lettings department.
The following payments may apply when entering an Assured Shorthold Tenancy:
| First month’s rent | In advance |
| Tenancy Deposit | 5 weeks, or 6 weeks if annual rent is over £50,000 |
| Holding Deposit | One week’s rent, put towards your first rent due |
| Early termination when requested by the tenant | A charge not exceeding the financial loss experienced by the landlord |
| Default charge for late payment of rent | A maximum of 3% above Bank of England base rate, charged when rent is more than 14 days late |
| Default charge for replacement of lost key or security device | Equivalent to cost incurred |
| Changing the tenancy documents after the commencement of the tenancy, including change of sharer | £50 incl. VAT |
The following payments may apply when entering a Non-Housing Act Tenancy:
A Non-Housing Act Tenancy is formed when the annual rent exceeds £100,000 or the property is occupied by a Company rather that an individual.
| Inclusive of VAT | |
| Tenancy Setup Fee drafting and execution of tenancy agreement if supplied by us, collecting and holding the Security Deposit as Stakeholder, issuing protection certificates, if applicable, Open Banking type referencing of tenant and initial Right to Rent Checks | £360 |
| Check-in Fee checking into the property and reviewing inventory | minimum of £130 |
| Tenancy Continuation negotiating and drafting an extension | £150 |
| Change of Sharer – Deed of Assignment | £120 |
| Early Termination – Deed of Surrender | £120 |
| Guarantor Referencing Fee (each): | £30 |
| Deed of Guarantee Fee: | £50 |
| Late payment of rent | 3% above the Bank of England base rate |
This guide is for tenants and landlords in the private rented sector to help them understand their rights and responsibilities. This guide includes a checklist and further detail on each stage of the rental process.
Tenancy charges may vary, depending on the agreement we have with you, so it’s best to ask the INHOUS lettings department for a full breakdown of costs. Here’s a list of what you can typically expect to pay:
| Lettings Service Only: | 10%+VAT (12% inc. VAT) – Including rent collection |
| Letting and Management Service: | 16%+VAT (19.2% inc. VAT) |
| Short Let (less than 6 months): | 24%+VAT (28.8% inc. VAT) |
| Lettings Renewals Service: | 8%+VAT (9.6% inc. VAT) |
| Lettings and Management Renewal: | 14%+VAT (16.8% inc. VAT) |
| Short Let Renewal (less than 6 months): | 24%+VAT (28.8% inc. VAT) |
Additional non-optional fees and charges
We will not be charging clients fees for referencing, tenancy agreements or deposit registration.
The costs of a clean, EPC, gas safety, EICR, PAT and inventory are set by third party suppliers and prices may vary. The below schedule is to give you an idea of what you would typically pay.
All fees stated are inclusive of VAT (calculated at 20%):
During the tenancy (if required
INHOUS is a member of and covered by the ARLA/Propertymark Client Money Protection (CMP) Scheme.
We are also a member of a redress scheme provided by The Property Ombudsman www.tpos.co.uk.