Buying property abroad
Buying property abroad is the first step to turning your dream relocation plan into a reality.
At Lumon, we specialise in the currency side of buying property abroad, making it easy to move your money safely across borders, so you can get the keys to your place in the sun.
Choosing the best place to buy a property abroad
With the right planning and support, you can focus on making your overseas property purchase with confidence. Here are a few tips to help you get started:
Cost of living: Daily expenses vary widely between countries; check local costs so you can plan your budget.
Climate: Looking for year-round sun or gentle seasons? Make sure the local weather suits your plans.
Visa requirements: In some countries, buying property overseas comes with residency options, in others, it doesn’t. Always check the rules before making plans.
Exchange rates: Currency changes may affect your budget. With Lumon, your dedicated currency specialist can help you plan ahead and target a competitive rate.
Visit the property: Seeing it in person helps you assess the home, meet agents, and get a feel for the community.
Your essential guides for buying property abroad
Our comprehensive guides cover everything you need to know when buying property abroad — from visas and fees to navigating local systems.
Financing your overseas property purchase
When you’re buying a property abroad, how you choose to fund it can shape the whole journey. From using savings to exploring mortgage options, here’s a quick overview of the most common ways to finance your purchase, so you can find the one that fits your plans best.
Mortgage options in the UK
Financing through a UK lender can feel more familiar when buying a house abroad, but there are a few things to consider.
Pros: UK lenders are regulated by UK standards. So, if your income and assets are based in the UK, this route may feel more straightforward.
Cons: Not all UK banks offer overseas mortgages for buying property abroad, and those that do may have limited options. Rates can also be less competitive compared to what’s available locally abroad.
Mortgage options with foreign lenders
Using a local lender can give you access to more competitive rates and mortgage options, especially in popular expat areas.
Pros: Foreign lenders often offer better value through local market rates and greater flexibility for local property types and requirements.
Cons: The process may involve paperwork in a different language, and you could be asked for a local credit history. If your income is in GBP and your mortgage is in foreign currency, exchange rate shifts could affect your repayments.
Releasing equity from your UK property
If you’re purchasing property overseas and already own a home in the UK, releasing equity could help fund your property purchase abroad.
Pros: It’s a flexible alternative to taking out a foreign mortgage, and it allows you to borrow against an asset you already own.
Cons: Be sure to weigh up the long-term costs, including interest and repayments, to make sure it’s the right move for your finances.
Pay in full or borrow?
Another decision when you decide to buy is whether you want to buy your property outright with cash or over instalments with financing.
Cash: Using a lender in the country where you’re buying can open up more tailored options, especially if you’re buying in a popular expat area.
Financing: A mortgage can help spread the cost, which is useful for second homes or investments. Just make sure to factor in interest, loan terms, and how exchange rates could affect your repayments.
Understanding the costs of buying property abroad
From legal fees to local taxes, there’s a lot to consider beyond the property price. Here’s are a few costs you can plan for so your property plan runs on budget.
Set your budget
Know what you can afford before you start your property search and allow extra for fees, taxes, and other buying costs.
Factor in local fees
Costs vary by country, property type, and how you’re buying, so it’s worth checking what applies to your situation.
Prepare your deposit
Have funds available for a reservation deposit, so you’re in a strong position to secure the right property when you find it.
Avoid transfer fees
With Lumon, what you see is what you get. No hidden transfer fees, no surprises. Just clear, competitive rates and personalised support.
How the exchange rate could affect your property budget
Exchange rates move constantly, and even small shifts in the rate can have a big impact on your budget. Whether you prefer online convenience or support over the phone, we’re here to help you manage the currency side of your overseas property purchase.
Support from a currency specialist
Your dedicated currency specialist is always available over the phone to provide real-time market insights, so you can make a well-informed decision when the time comes to transfer for your overseas property.
Send payments online
We have a range of transfer options to suit your needs and where you are in your property journey. With your online account you can send payments with ease in your own time.
Key steps to finding and buying your ideal property overseas
Set your budget: Factor in the purchase price, legal fees, local taxes, and currency costs, so you know exactly what you can afford from the start.
Research locations: From coast to countryside, explore destinations that suit your lifestyle, budget, and long-term plans.
Viewing properties and making an offer: Whether in-person or online, learn how to book viewings, work with agents, and secure your ideal property with a reservation deposit.
Looking beyond your purchase: Think ahead to ongoing costs, local admin, and how you’ll manage payments, so settling in feels simple and stress-free.
Legal requirements and due diligence considerations
Get independent legal advice: Having your own lawyer, not one recommended by the seller, helps protect your interests from the start.
Check for restrictions: Some countries require permits or have rules for foreign buyers. Local legal guidance will help you stay compliant.
Understand the contract process: Property laws vary by country, so it’s important to know what each stage means, from initial agreements to final signing with a notary.
Protect yourself from fraud: A trusted legal expert can help you spot red flags, verify ownership, and avoid costly scams.
Frequently asked questions
Is buying property abroad a good investment?
It can be, especially in popular tourist or retirement spots where there’s potential for long-term growth or rental income. But like any investment, it’s important to research the local market, legal rules, and currency factors before you commit.
Is it possible for a UK resident to buy property abroad?
Yes, UK citizens can buy property in many countries. Just keep in mind that rules vary. Some places restrict foreign ownership, while others offer residency through property investment.
Do you pay UK stamp duty on a foreign property?
No, UK stamp duty only applies to properties bought in the UK. But the country you’re buying in may charge its own taxes, like transfer duties or notary fees, so factor those into your budget.
Do I have to declare an overseas property to HMRC?
You don’t need to declare the property itself, but you must declare any income, like rent, and may owe capital gains tax if you sell at a profit. To find out more about the tax implications of purchasing property overseas, you should consult a tax adviser.
How can I get a mortgage to buy property abroad?
You can usually apply through a lender in the country where you’re buying or work with an international mortgage broker. Each country has different rules, but you’ll typically need a larger deposit and proof of income.
How can I avoid UK tax on a property I buy abroad
If you’re a UK tax resident, overseas income and gains are still taxable, but you may reduce what you owe using allowances or double taxation agreements. A tax adviser can help you navigate your options.
Helping protect your property budget from the exchange rate
Whatever the market’s doing, we’re here to help you time your international property transfers and stay on budget.
International property specialists
Bank-beating exchange rates* and no transfer fees
Cared for over 70,000 customers since 2000
Award-winning service
Checklist: 5 essentials before you buy
1. Start with research
Understand the local property market, regional appeal, and legal landscape. Look into ownership rules, taxes, and long-term investment potential.
2. Get professional advice
Work with a local lawyer, property surveyor, and financial adviser to help you navigate regulations, contracts, and financing.
3. Plan your finances
Explore mortgage or savings options, account for local buying costs, and factor in exchange rate fluctuations with the help of a currency specialist.
4. Inspect the property
Always carry out a full inspection and building report to check for hidden issues before signing anything.
5. Know the ongoing costs
Budget for insurance, maintenance, property management (if renting), and future exit or resale strategies.
*Bank-beating exchange rates
Get more for your money with great value on every transfer. We offer bank-beating exchange rates, no transfer fees, and award-winning service you can rely on.
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Supporting our customers
Fast and efficient service. We’ve used this company for transactions to buy property, transfer currency and pay overseas service providers, both large and small amounts. All done seamlessly and securely.
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We’re here to help
At Lumon we understand what it takes to help you buy property abroad successfully. We tailor our specialist overseas property service to meet your individual needs, so you can make international payments with confidence. We’re here to help you make the most of your budget with no hidden fees.
The information provided is for general information purposes and does not constitute legal, tax or other professional advice from Lumon, and it is not intended as a substitute for obtaining advice. It is recommended you seek professional advice from a financial advisor or any other professional.