Your Dream Getaway: The Ultimate Guide to Buying a Holiday Home Abroad

Whether you’re dreaming of a charming escape abroad for your holidays or considering an investment property to rent out, buying a holiday home overseas comes with many important factors to keep in mind.

Beyond choosing the perfect location and type of property, you’ll need to navigate how to finance your purchase, understand tax implications, legal restrictions, local regulations, and other challenges tied to owning a home in a foreign country.

If you’re considering taking the plunge and buying a property abroad, this guide will walk you through the key topics and highlight some of the best destinations to find your perfect holiday retreat.

Why Buy a Holiday Home Abroad?

Owning a holiday home abroad offers numerous benefits—though it depends largely on your personal goals and circumstances. Here are some common reasons why it can be a smart investment:

• Your Home Away From Home: Whether you want extended stays or quick getaways, having your own place abroad means you always have a cozy spot waiting for you.
• Save on Future Holidays: With accommodation costs already covered, your holiday expenses drop significantly over time.
• Generate Extra Income: When you’re not there, renting out your property can bring in a steady income stream.
• A Retirement Haven: It could be your perfect place to retire in the future.
• Capital Growth: Buying in an up-and-coming area might offer good returns when you decide to sell.

The Challenges of Buying a Holiday Home Abroad

Like any investment, buying overseas has its downsides and risks to consider:

• Bureaucracy: Some countries have complex rules and paperwork, which can delay the purchase process.
• Tax Complexity: UK buyers must fully understand overseas tax laws to plan accordingly.
• Natural Disasters: Floods, earthquakes, storms, and wildfires can threaten your property.
• Rental Restrictions: Certain destinations have tightened regulations or even banned holiday lets.
• Limited Travel Variety: You may find yourself going back to the same spot every year, missing out on exploring new places.
• Ongoing Costs: Property taxes, utilities, insurance, maintenance, and property management can add up.
• Language Barriers: Communicating with local tradespeople and service providers can sometimes be tricky.
• Resale Challenges: Selling abroad can be harder if demand is low.

Top Destinations for Buying a Holiday Home Abroad

Despite Brexit, Europe remains one of the easiest regions for Brits to buy property. Your choice depends on what kind of lifestyle you want—whether that’s a family-friendly community, a slow-paced village, or an English-speaking expat hub—and practical considerations like travel time, living costs, and climate.

Spain

Spain is a favourite, famous for its sunny beaches, vibrant culture, delicious food, and year-round warmth. Hotspots like Marbella, Costa del Sol, Alicante, Mallorca, and Torrevieja offer great rental opportunities, making it a top pick for holiday let investors. Prices range from affordable coastal homes to luxury villas, all with a relatively low cost of living.

France

Known for its exquisite cuisine, iconic landmarks, and rich heritage, France is another popular choice. It boasts a stable economy and easy access from the UK via the Channel Tunnel. From seaside apartments to countryside cottages in wine regions, France offers a well-regulated and transparent property market.

Portugal

Portugal’s growing appeal comes from its welcoming communities, warm climate, and beautiful coastline. Whether you prefer charming coastal towns, luxury villas in the Algarve, or lively cities like Lisbon and Porto, Portugal offers a great variety for every budget.

Italy

Italy dazzles with its art, architecture, delicious food, and temperate climate. Although generally pricier than some others on this list, regions like Tuscany, Umbria, and the Amalfi Coast provide stunning holiday homes for those willing to invest.

Cyprus

With its sunny weather, affordable living, high quality of life, and favourable tax conditions, Cyprus has become a favourite among holiday home buyers.

Greece

Greece is a paradise for picturesque landscapes, sandy beaches, and idyllic islands. Luxury buyers flock to Santorini and Mykonos, while more affordable options can be found in Corfu and Kefalonia.

Smart Tips for Buying a Holiday Home Abroad

Do Your Homework

Research goes far beyond picking a pretty spot. Understand property prices, availability, and what your budget can realistically buy. If you plan to rent out the property, check rental laws and demand throughout the year.

Look into the history of natural disasters in the area—they can affect insurance costs and rental seasons. If buying in a development, ask to see previous projects and talk to current owners for insights.

Finding Your Property

Start with popular websites like Rightmove and then connect with local estate agents who understand the area and the legal process. You might also consider hiring a buyer’s agent for expert help.

Forums and Facebook groups with people who’ve already purchased abroad can be goldmines for honest advice. Always vet local service providers through reviews and recommendations.

Budgeting Wisely

Costs go beyond the purchase price: furniture, surveys, mortgage broker fees, legal fees, currency transfer charges, insurance, property management, travel, and ongoing maintenance all add up. Have a contingency fund for unexpected expenses.

Get an Independent Survey

Always commission a professional surveyor to inspect the property, even if it’s brand new. This protects you from hidden defects or structural problems.

Hire an Experienced Lawyer

Avoid legal nightmares by using an independent, English-speaking lawyer familiar with local property laws. Never rely on legal help recommended by sellers or developers.

Financing Your Purchase

You can pay outright or get a mortgage either in the UK or through an overseas lender. UK lenders offer familiar terms and language, while foreign lenders may provide better deals and local expertise—but currency fluctuations add risk.

Take your time comparing mortgages, focusing on interest rates, fees, repayment terms, and penalties.

Secure Your Currency Exchange

Transferring large sums overseas means exposure to fluctuating exchange rates. A currency specialist can help lock in favorable rates or advise on the best timing to maximize your funds.

Brexit’s Impact on Buying Abroad

The biggest change post-Brexit is that UK citizens can only stay in EU countries for 90 days within any 180-day period. If you want to spend longer in your holiday home or travel extensively in the EU, plan accordingly.

Protect Your Investment

Once you’ve found your dream holiday home, it’s crucial to protect it with the right insurance. Coverage should account for risks when the property is occupied, empty, or rented out. For example, Schofields offers holiday home insurance in Spain, France, and Portugal tailored to your needs.

Buying a holiday home abroad can be an exciting and rewarding adventure—but it’s also a serious investment. With careful research, expert advice, and smart planning, your dream getaway could soon become your very own home away from home.