Overseas Mortgage
When buying overseas property, you may require overseas mortgage information. The mortgage market in many overseas real estate markets is established - for example, most EU countries offer mature mortgage markets linked to the Euribor interest rate. In other emerging overseas property markets, however, the mortgage market may be in its infancy. Once mortgages are established, local demand for property usually increases, leading to further potential for property investment overseas.
It is important to consult your lawyer for the latest information on overseas mortgages as well as up-to-date advice on current financing options available when you buy property abroad as an investment vehicle. Alternatives to an overseas mortgage include equity release from properties you currently own.
Overseas Tax
Once you make the decision to invest in overseas property, you need information about the taxes and fees payable. As these vary greatly from one country to another, it is vital that you obtain expert information on overseas tax. Most overseas property investment entails the payment of between 10% and 20% of the purchase price, depending on the country, to cover costs.
Owners of properties overseas may also be liable for local and state taxes, and these may include income tax on rental income from property investment abroad.
