We find that most people buy a property overseas for three reasons: investment, holiday use, retirement – or a combination of those. Buying an overseas property for investment purposes is completely different from buying for your own use. When deciding where and what to buy, you need to focus on two things:

• Is this country, region and property somewhere that other people will want to be in the future?
• How do I want to make my money - from renting out the property or by selling it?

In other words, you need to consider location and returns. An analysis of all the relevant factors should enable you, with the help of a little expert advice, to make the right decision!

We can advise you objectively on a range of investment choices, and provide you with opportunities to buy off-plan for even more gains.


Apart from the obvious things like the weather and the scenery, you need to ask some very specific questions about your chosen location.

• Are there plenty of recreational opportunities (beaches, golf courses, mountains, shopping) nearby?
• What child and family-friendly activities are on offer? Florida obviously is the best example of this, but the Spanish Costa Blanca also has theme parks and attractions.
• What are the plans for golf courses in the area? For example, the Costa del Sol and Portugal are well-known for their abundance of courses, but the Costa de la Luz is fast catching up, and 3 courses are planned at Meditaerania Saidia in Morocco.
• Is it close to growing urban centres and an airport?
• Is there commercial investment in the area e.g. are new hotels, conference centres etc. being built?

All this should add up to a picture of a location that is at the very beginning of its popularity boom, much like the Spanish Costa del Sol in the 1970s, Orlando, Florida, more recently, and Daytona Beach now. Accessibility is key, but you need to look at what it will be like in 3 or 5 years time.

• Are new roads being built?
• Are regional airports being developed?
• Are budget airlines looking to add this location to their destinations?

For example, the north coast of Morocco is currently not particularly easy to access, but the Moroccan government, as part of its drive to increase tourism, has guaranteed to provide the necessary infrastructure projects to connect the coastal resorts with the rest of the country and Europe by constructing 1,000 kms of new roads, increasing internal and international flights, and developing new regional airports.

Look at historical trends. These are likely to continue, albeit in a modified form. The Costa del Sol, for example, has always been a good investment prospect and continues to be so.


How do you intend to make your money – from rentals or from selling the property, either quickly or in several years time? Both have tax implications which need to be considered in the light of local legislation.

The rental returns from a property need to be carefully assessed and not over-estimated. Rentals are never guaranteed, and you should be careful not to take on something which you may struggle to pay for when it is not rented out. Look at local supply and demand. Currently, Crete, for example, has a shortage of high quality rental accommodation. Some countries offer advantageous terms: properties in our developments in Morocco, for example, are tax-exempt for the first 5 years.

30 weeks rental per year might be a reasonable expectation; this should produce a net return of about 6%, but also means that the property may be empty for 22 weeks per year. A secure development such as Regal Palms Resort in Florida means you do not need to be concerned about leaving it unattended. Another issue is keeping the property in rentable condition, so you will need to organize (and pay for) some sort of property management in your absence. Will the developer provide this, or will you need to source a cleaner and gardener yourself?



If you are looking at selling the property, you will need to consider the current capital gains situation in the specific country. For example, in Spain, capital gains tax (CGT) for non-residents is 35%, but residents under 65 are partially exempt if they have lived in their principal home for at least 3 years and plan to buy another home in Spain within 3 years, in which case they are taxed only on the amount that was not re-invested. In Portugal, CGT is a flat rate of 25%, but in Crete property gains by individuals are generally not taxable. In Morocco, it is 20% of the profit, but after 10 years of ownership the property is exempt, and after 5 years the tax is 10% on any gain over about 90,000€. In Cyprus, the first £20,000 is exempt from CGT and thereafter it is applied at 20% whereas, in Florida, the buyer is required to hand over 10% of the gross sales price to the Inland Revenue Service as pre-payment of CGT.

It's a lot to think about, and all the factors need to be carefully considered and balanced before you make this important decision. We can advise you on various investment opportunities available.