The purchase of property as an investment is an asset and can provide income in the future or can be sold at a higher price for a profit. Regardless of your interest of acquirement of ownership of a property in a foreign country, please do bear in mind the following important recommendations:
- Legal Residence
Depending on the country it is important to find out what are their residence regulations with regards to the investment in a property.
Particular conditions on residency need to be investigated beforehand and what essential requirements are needed to comply.
- Trustworthy Brokers, Agents, Salespeople, and Lawyers
To start off, make sure you get an established lawyer who is not connected with the developers or real estate who sold the property as they could be representing both parties.
It is advisable to choose a lawyer who speaks your language and the local one as well, is competent in your own country and the country abroad and familiar working in the country of your choice.
To be on the safe side it is wise to check the registry on the Law Society. Usually, your Embassy is very helpful with assisting in finding the qualified professionals like lawyers, translators, etc.
- Charges levied by the government on property and income
Every country has its own taxation system and you are best advised to research this matter beforehand. Very important as well is to ensure if the double taxation agreement is assessable to refrain from paying taxes in both countries.
Personal income tax may need to be paid in the chosen country if you choose to rent out your property. Taxation of Capital Gains will be involved in the case of a possible sale of your property.
When you decide to buy a property in whatever place in the world, it is most important to make sure that the location suits your needs of everyday life. You do want to make sure that the place you choose is near services such as airports, taxis, bus stations, hospitals, shopping areas, schools, etc.
The pros and cons of living in certain areas should be considered. Compare rural areas with the cities, and don’t forget that it also applies to the investments. The people, who buy properties, definitely consider the same preferences.
- Receipts for all documents
For all transaction be sure to have a confirmation. Make sure that you have a paper receipt instead of email confirmations and keep copies of all because if something goes wrong, you have to have the proof. Ensure that all the information about the property and valuation are always at hand.