Frequently Asked Questions and Answers for Buying Property Overseas

Frequently Asked Questions and Answers for Buying Property Overseas

Frequently Asked Questions and Answers for Buying Property Overseas

What you need to consider when buying property abroad? Of course, we primarily look at the price / quality ratio and price / profitability for each individual object. However, this is not all that you need to know and what to consider when buying property. When people move from plans to their implementation, they have many questions. Consider the most important of them.

Do I need to open a company abroad to buy real estate?


In many countries of Europe, as well as in Turkey, the United States, Egypt and other countries, residential real estate can be purchased with almost no restrictions for individuals. But, as a rule, there are significant restrictions on the use of land in foreign countries. For example, in Thailand you can freely buy an apartment, but the “land under it” will have to be rented.

Recently in Croatia, EU citizens were allowed to purchase property in their own name. However, everyone else will have to open a company.


Can I buy land abroad?


In Turkey and Lithuania, you can only buy land for companies registered in the country. In Bulgaria and Thailand, you can not get land in the property, you have to rent it for a long time. In Montenegro, permission to purchase land from local authorities will have to wait from six months to two years. In some countries, such as Italy, foreigners are forbidden to buy agricultural land. In the United States, on the contrary, it is easiest to buy land without reference and insurance.


Is it allowed to get visa privileges for real estate and residence rights?

Each country has its own policy. After buying a property in Schengen, the owner is allowed to obtain several entry visas to the countries of the Schengen Agreement, and the maximum length of stay on its territory is 90 days within six months. However, the acquisition of the housing itself does not give the right to obtain a residence permit. In Egypt, Turkey and the United Arab Emirates, property owners immediately receive a residence permit. In the Dominican Republic, you can get a residence permit, even if you do not buy property.


What visa benefits will my relatives receive?


In many countries, immediate relatives (husbands, wives, children, parents) of property owners have the right to receive visa benefits. But each country has its own policy. In many European countries (Spain, Finland, Germany, Great Britain, etc.), the owner’s spouse and children receive multiple entry visas with different periods of validity. For example, they are issued a reusable annual visa to Bulgaria. In Cyprus, relatives can get multiple-entry visas for up to three years.

Conditions for obtaining a residence permit are different. In Turkey, Egypt and the United Arab Emirates, the immediate family has the same residence permit as the owner. In many countries, including European countries, buying a home is not a basis for issuing a residence permit, although it does provide certain advantages.


Can I get the services of real estate agents and make their own transactions?


Theoretically, the use of real estate agent services is unlimited. However, foreigners are strongly advised to contact specialized agencies to ensure the security of the transaction. This allows you to eliminate possible problems associated with ignoring foreign languages ​​and laws. In addition, in many European countries, sellers pay for real estate agents, for example, in Egypt, large companies can work only through real estate agents.


To make a sale, I decided to use the services of a real estate agent. How can I check their reliability?


If you use the services of a certified company, there is no risk. The main thing you need to do is to ask the agency to get permission to work in real estate. Usually a solid institution provides full support for the transaction. Please note that any agency must have its own office. For example, in France, you can ask if an institution is part of a French real estate agency (FNAIM) - an organization requires its members to strictly abide by the law.


Can I buy property without leaving my country?


Yes, in most cases you can buy real estate without leaving your country, working remotely with foreign real estate agents. For example, to buy real estate in the United States, you need a phone, a scanner and the Internet, where you send the signature file. The risk in this case is virtually zero, because American brokers value their licenses, and violation of legal and ethical standards can lead to loss of the right to participate in such activities.


In which country do you pay taxes when you buy a property?


Many countries in the world have entered into contracts that eliminate double taxation, that is, the tax will need to be paid only in one of the countries. Taxes are paid at the location of the property. In other words, buying a house in Italy

Construction of the facility is delayed. What can I do as a property owner in this situation?

Unfortunately, the delay in construction is a fairly common problem. For example, in Bulgaria, the delivery of objects has recently been delayed by an average of one year. However, if the real estate agent at the initial stage of the transaction checks the solvency of the developer, the object is likely to be completed on time. In Egypt, developers sometimes offer bonuses in compensation: furniture, air conditioning, etc. The main thing is that all changes to the terms of the contract are recorded.

If you decide to terminate the contract, you need to be prepared for the fact that the developer will not be able to return the entire amount of the investment to you. For example, the contract may stipulate that companies own 20-30%, because developers usually limit their responsibilities. If the contract is not terminated on your part, you have the opportunity to fully refund the money for the object. But for this it will be resold, and it may take time to find new buyers.


In which countries can I get a mortgage now?


To get a mortgage in Bulgaria is very difficult, especially if there is no permanent residence permit. In Egypt, it is almost impossible to get a loan, because there is no system for providing loans to foreigners. Developers often offer installments in the Czech Republic on attractive terms, and you can also get a mortgage, but this is difficult. Credits in Spain, France and Germany are very real. At the same time, success in France largely depends on the direct relationship between real estate agents and banks.


What should I do if a mortgage is issued, but I cannot continue to pay?


If you cannot pay on time due to objective circumstances, you can discuss it with the developer to get more time to pay off the debt. Often companies are willing to make concessions. If the developer does not provide relief, and you decide to terminate the contract, the law will be on your side.


Is it possible to extend the loan term?


This happens to those who conscientiously repay debts. To do this, you must contact the bank that issued the mortgage loan, and provide documentation of your financial situation. Often, contracts with revised mortgage conditions require notarization and re-registration in the property register, which also requires additional fees and charges.


Can I count on an additional discount if I pay the full price right away?


Yes, there is such an opportunity. As a rule, such discounts are offered when buying property under construction. But the size of the discount depends on the company and the specific project.


After buying a property, I plan to go abroad only once or twice a year. Can I rent a property, and how much can I get?


This is a common practice. The amount of rental income depends not only on the country, but also on the specific city. For example, in Germany, the annual profit minus costs will be 10% per year, and in Latvia - 3-5%. In Bulgaria, up to 3-5%.


If I buy property abroad, will my spouse become a co-owner?


If you want to buy your home, your spouse must submit a notarized consent to purchase the property. Otherwise, he must participate in the transaction and at the same time be able to manage a certain share of the property. It should be remembered that if spouses are citizens of different countries, their property relations are regulated in a special way, depending on the legislation.

Can I buy only a share in real estate?


Yes, usually a partial acquisition is not a problem. This option is suitable for buyers who do not want to invest heavily, but want a profitable investment. If one of the owners will live in the apartment or house permanently, there is no need to contact the management company to maintain the house.

  • 02 October 2018
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