Abroad look at the law

The first thing to understand about buying in Europe is that the process is different from here as well as much more expensive, and there can be complications with inheritance tax and capital gains tax. As a general rule, expect buying expenses of between 10 and 15 per cent of the purchase price.

You would be well advised to take professional advice right from the start from lawyers and accountants experienced in the local legal procedures, tax regime, and preferably someone who speaks English. You may decide to consult local lawyers or use UK lawyers who have associates in the country in which you are buying. Either way you will need a lawyer to deal with the notary on your behalf. Costs will vary, as in the UK, but the overall bill for legal services may well be higher than they would be here. In most Continental countries the actual conveyance of the property is carried out by a notary, who is a local-authority official who acts for both seller and buyer. He establishes that the vendor has good title to the property, transfers it to you and registers the property.

But you will need a lawyer to represent your specific interests to establish exactly what you are buying in terms of land or boundaries and rights of way. He will also check whether the vendor has unpaid taxes outstanding or debts such as unpaid builders' bills.

You frequently find that bits of land which you thought you were buying have been sold between members of the family or to neighbours but not registered (usually to avoid tax), and this has to be unravelled. Similarly, rights of way are important, as foreign buyers frequently find out to their cost. You may have bought the house but if you have to cross someone else's land to get to it, you could end up paying considerable extra sums to buy a right of way from another person altogether.

So before you even start looking for your property, make sure you understand the tax implications as this could influence your decision. For example in France the laws on inheritance are tricky. Capital gains tax is usually payable when you sell your foreign property but there are reciprocal tax agreements between most EU countries and the UK and any CGT paid locally can usually be offset against your UK CGT liability. As a UK resident you will be liable to CGT on all gains on worldwide assets.

Portugal
France
Italy
Spain