Property

Inheritance Tax in France for UK Citizens: How Does It Work?

Are you a Brit who’s moved abroad? Got a cottage in Dordogne? Maybe just a modest share account that never left a French bank? You’ll want to know what happens and what to do when life moves on and the will comes out of the drawer before a notaire asks for papers.

Before we go any further, it’s worth noting that France does not copy the UK model. It taxes what each person receives rather than a single bill on the entire estate, and it cares about where assets sit and where people actually live. Let’s get into it:

How Does Inheritance Tax Work for UK Citizens in France?

When people talk about “Inheritance tax France”, they usually just mean a charge on what a beneficiary receives – not a tax on a central pot. That is the French inheritance tax system in a nutshell. 

The calculation depends on the heir’s relationship to the deceased person. A surviving spouse is usually exempt, but the rules differ for children, parents, or any other relatives. 

Each person has a personal tax-free allowance and then checks the inheritance tax rates that apply to whatever remains. And if nothing remains after allowances, there is no inheritance tax owed! If something does remain, you’ve got to pay inheritance tax on that slice, and you do it according to a timetable that the French authorities enforce.

Does French Inheritance Tax Depend on Residency or Location?

You might live in London and keep a house in Bordeaux. Or, you might be a long-term French resident who still owns a flat in Manchester – it’s those facts that determine which country has the primary right to tax. 

France will then ask you: 

  1. Are you, or was the deceased person, a tax resident of France at the relevant time?
  2. Are the assets located in France?

If the answer to either is yes, French inheritance tax applies in some form. Say no to both, and your exposure gets a bit smaller (though it rarely disappears completely).

If you own property in France or live there for tax purposes, France can tax everything you inherit worldwide (though certain reliefs may apply). And if you live in the UK but inherit a house in France, you’ll still pay French tax on that property simply because it’s in France.

The tax office won’t just take your word for it – they’ll look at things like your:

  • Utility bills
  • Health cover
  • Your kids’ school records
  • Where you actually spend your days

So don’t assume that a quick flight and a change of address will switch your status overnight!

Fortunately, this is where treaties between these countries help. The UK and France have a double taxation treaty for inheritance. It’s a tax treaty with its own logic, so it’s not just a clone of the income tax network. It sets out who taxes first for particular items and how the other side should give credit. 

Which Assets are Subject to Inheritance Tax in France?

French inheritance law looks at everything from relationships and allowances to what sits on the table. So things like cash and homes count as taxable assets. Some life insurance policies have their own thresholds and timing rules, so you might want to check the details before you bank on a specific outcome. 

The French inheritance tax applies per recipient, with the bill calculated after allowances tied to the family link. That often means a practical plan revolves around who takes which asset rather than who acts as executor or signs which form.

How Do Other French Taxes Interact with Inheritance?

Don’t mix up inheritance with other French taxes that can arrive later. For example, you might inherit a house this year and incur capital gains tax if you sell after a rise in value next year. You might incur income tax on rent if you let the place while you decide what to do. But neither of those replaces the French succession tax, and none of them cancels out the others. 

Also, if your property wealth crosses a threshold, a separate wealth tax liability can crop up on French real estate values. But that charge is about property, not shares or cash, and it works slightly differently.

Do Gifts Made Before Death Count Toward the Tax Bill?

Furthermore, when you give away assets before you die, France can count those gifts alongside what you leave at death. They check back over a set period to see if earlier gifts push you into a higher tax band or eat into your allowance. 

That means the date and proof of any gift are really important here. Make sure you keep clear records – signed documents, dates, amounts – so your generosity doesn’t cost your heirs more, just because a file went missing or a scan was unreadable!

How Do French Succession Laws Affect Inheritance for UK Citizens?

So you have two paths with inheritance: the tax rules on one side, and the legal rules about who gets what on the other. In France, the law protects certain heirs (which tends to be children), so you can’t just entirely cut them out by writing a will that follows another country’s rules. 

Now, you do have the option to pick English law for your estate under European succession regulations, but if a French court steps in, it will still check that your plan feels fair and follows form. 

Needless to say, this can end up getting a bit tricky for families based all over the place, where you want to look after a spouse but also honour children’s guaranteed shares. So oftentimes, people use tools like life-interest arrangements or a mix of assets so everyone gets something meaningful.

What Role Does the Notaire Play in the Process?

When you own property or other assets in France, a notaire handles everything. They:

  • Confirm who the heirs are based on your chosen rules
  • Work out each heir’s tax bill
  • File all the French paperwork (forms that might look odd if you’re used to UK documents)

And if your will names an executor back home, that person can help gather documents and liaise with the notaire. Just bear in mind the French process moves in its own order, so having clear translations and keeping originals where they’ll be found makes the whole thing a lot smoother.

How Upscore Can Help

If you want a simple way to keep documents and contacts in one place while you’re moving between different countries, check out Upscore’s Finance Passport! It’s a completely free tool, and it’s ideal for helping you organise figures and presenting a clean snapshot whenever a bank or notaire asks for proof.

Sign Up for Upscore’s Finance Passport Today!

How to Move Abroad with No Money: Tips & Finance Options

You’re allowed to want a fresh start even if you have a thin wallet. We get that it feels like a risky mix and probably more of a pipe dream than anything, but we’re here to show you how to break it into actions you repeat day after day. 

This is how to move abroad with no money without pretending luck will sort you out. We’ll get it into details shortly, but it mostly boils down to:

  • Cutting costs where you can
  • Opening doors that let you earn early
  • Building a routine that keeps you fed while you find your feet in a new country

Most importantly – you do not need a perfect plan. You just need a simple plan that can get you time and whatever cash you can raise. Let’s get started!

Ground Rules and a Steady Mindset

Start with the basics you just won’t be able to dodge: 

  • A ticket
  • A place to sleep for the first few nights
  • A phone that works on arrival

Then you want to trim some of your spending for a bit, which also means selling some of the gear you don’t really use (because each bit helps you save money before takeoff!). 

You’ll also need to keep all your important documents in a folder you can reach fast. So that’s everything from copies of your ID and brief references to proof of skills and a short contact list. These matter way more than extra clothing! 

You might already be doing this, but treat those final few days before departure as somewhat of a rehearsal for life abroad. This means cooking at home and practicing living on the budget you expect to have. Those habits carry over once you land and soften the shock of new prices and different rhythms.

Housing and work are going to be your main goals at this stage, since they both support each other. Free housing tied to entry level roles can bridge your first month, like a hostel that credits chores against a bed or a small cafe with a room above the shop. 

You might even be lucky and find host families that open their doors during busy seasons in exchange for help with simple tasks. Work exchange programs take that idea further by trading a bed and meals for a few hours of effort each day. 

You might be cleaning rooms or helping with harvests, for instance. Yeah, it’s not exactly glamorous, but the maths works because lower rent makes it easier to get set up in the long run.

Visas and Routes That Open Doors

A legal right to earn changes everything. A working holiday visa, for example, lets people try living abroad while picking up shifts. Of course, requirements will vary by destination country (and most countries set age caps or ask for proof of funds), so read the current rules rather than copy a friend. 

If you fall outside those schemes, a targeted work visa can still make sense when an employee wants your skills. So just keep realistic expectations, and be ready to adjust as you learn how the system in that place actually runs.

And it’s not uncommon to start teaching English when you arrive in a country of non-native English speakers. In some markets, a bachelor’s degree helps, but chances are you can get away with just a short certification.

For example, South Korea tends to pay pretty well with this sort of thing – your payment also arrives on time and apartments often come with the role. 

Other countries can work too if you choose towns that hire newcomers. Your language skills do not need to be perfect to start; you teach the language you already speak, while foreign language grows day by day as you shop and make friends, etc.

Money Tips That Keep You Moving

Needless to say, rent is usually the largest drain. So make sure you sort this out as early as possible. Look at hostels that let you handle reception or housekeeping in exchange for beds. It could even be a farm that includes bunk rooms. Furthermore, ask small hotels whether night audit shifts come with staff quarters. 

The bottom line is, you’re going to have to get a bit creative if you truly don’t have a penny to your name you can spend.

The money side also looks a bit less scary when you handle the basics fast. So that means opening a local bank account as soon as the rules allow so employers can pay without any hassle – not everyone is going to be happy paying you in cash. 

And until your card arrives, try to track spending money by day (not week) because small leaks add up. 

Again, it’s also worth searching for some kind of side income that can soften the landing if you don’t have consistent hours at your primary source of income:

  • Tutor kids in your native tongue
  • Pour coffees on market days
  • Take odd jobs that keep you meeting locals

Focus on work that teaches skills you can reuse, because your progress will compound when each shift makes the next one easier to win! 

And if a trial goes well, thank the person who vouched for you and ask what would make you an easy yes next time. Your goal is basically to just find a rhythm you can live with rather than something that’s going to burn you out quickly and have you looking for a way back home.

A Simple Plan for Week One

You might not be able to control the money that you arrive in your new country with, but you are able to set up a simple plan that gives you a bit of stability:

  • Book a flight that lands early in the day
  • On arrival, message the contact for your placement
  • Confirm the start
  • Walk the route before your first shift
  • If you arrive with a job lined up from a friend or a recruiter, keep your paperwork in one envelope and confirm hours in writing
  • If that lead falls over, move to day work and keep asking managers when they hire
  • Work exchange programs can bridge the gap while you seek a longer contract
  • Keep learning as you go and treat each week as a short project you can finish and review

Chances are you’re not going to be met with instant success, but you will collect a few small wins that end up compounding over time. For example, your manager might add some hours, or your landlord extends your stay for a couple of weeks.

How Upscore Can Help

If you eventually want to secure a mortgage in whichever country you settle down in, sign up for Upscore’s Finance Passport! It gathers your key documents and helps you show income history when a landlord asks. It won’t buy your ticket, but it can reduce a lot of the friction with gatekeepers so more doors open while you’re getting settled into a foreign country.

Sign Up for Upscore’s Finance Passport Now!

Building a House in the UAE: A Guide for Property Investors Abroad

You’re probably already imagining some beautiful marble floors with a bunch of palm trees outside when you picture building a house in the UAE. But to actually get there, there’s a heap of work to do:

  • Careful planning
  • Legal compliance
  • Construction costs

If you’re someone who’s never lived in the UAE and doesn’t really know what to expect, you’ll be glad to know that the whole process isn’t as complicated as you might initially think. 

That said, you need accurate cost estimates and a firm grasp of construction regulations before you commit to anything. That also includes getting a clear path to land acquisition. We’re going to help you understand how to make it happen throughout this article!

Understanding Land Acquisition and Legal Requirements

As you might expect, securing a plot is the first step in your residential development venture. Land prices vary dramatically from one emirate to another. That’s something that will have an impact on your average price per square foot long before you ever even start the construction process. 

And handling all the building permits and legal compliance requirements is something you’re going to have to do regardless of the house you’ve got in mind – from a basic villa to a high end luxury villa. 

The UAE’s construction regulations require developers to submit:

  • Site plans
  • Proof of ownership
  • Environmental impact assessments (in some areas)

So your first step here is to get in touch with a good real estate consultant to help you through these steps and avoid delays that increase your costs.

Estimating Costs: From Land to Roof

Right, so after land acquisition, it’s time to map out estimated costs for your entire project. You’ll factor in labour costs that reflect skilled labour in a region that depends pretty heavily on expatriate expertise. 

This means shopping around for construction materials – sand, steel, concrete blocks, etc. – and then weighing those against higher quality materials for finishings. A mid range quality finishes package might include polished stone floors and semi-custom cabinetry, whereas a high end luxury villa tends to need more handcrafted details that, as you might expect, push your bottom line higher. 

Then there are all the additional costs – everything from site surveys and utility connections to contingency allowances. But those are generally things you can revisit later. Your main concerns right now are materials and labour costs.

The Construction Process 

Once permits arrive, the construction process kicks off with things like ground clearing and foundation work. At this stage, your contractor will order building materials in batches that reflect project complexity and timeline. 

Things like pouring foundations and installing roof structures will be the core of the build, but again, you’ve still got to negotiate labour costs in advance. You definitely don’t want to skimp on this – cutting corners is going to mess up your whole plan.

Accounting for Energy Efficiency and Sustainability

Energy efficiency is probably a bit of a buzzword in the UK, but it’s actually a necessity in the desert sun. So that means installing:

  • Solar panels on south-facing roofs to capture maximum sunlight
  • High-performance insulation to cut cooling costs
  • Efficient glazing that blocks heat without dimming the view

It’s worth mentioning here that you probably are going to pay a bit more upfront when you specify sustainable materials. But that initial outlay often pays dividends in lower utility bills and stronger resale appeal. 

And as a side benefit, an eco-focused build can help you sidestep certain fees or even qualify for green financing options with local banks who want to show they’re backing sustainable commercial projects!

Navigating Construction Regulations and Building Permits

Each emirate has its own authority that oversees construction regulations in the UAE. For example, Dubai’s Building Department and Abu Dhabi’s Department of Municipalities and Transport handle the approval processes that cover everything from building permits and environmental approvals to even signage rules. 

That means you have to submit:

  • Architectural drawings
  • Engineering reports
  • Proof of compliance with fire safety standards

Expect back-and-forth on minor tweaks – could be a change in stair dimensions or an upgrade to meet barrier-free access rules – before you actually get a permit to break ground.

Balancing Construction Materials and Labour Costs

Your margins hinge on negotiating both construction materials and labour costs. Now, bulk purchasing cement or steel can net discounts, but only when storage and handling don’t introduce any spoilage or waste. 

And yes, skilled labour might command a premium, but cutting back invites mistakes that cost way more to fix. Some investors save by sourcing mid range quality finishes locally, as that sidesteps a lot of import duties and lengthy shipping times. But then others find that higher quality materials, though pricier upfront, reduce maintenance calls and buyer pushback once the villa is complete.

Managing Additional Costs and Project Complexity

Every project carries a few elements you won’t be able to expect. This could be unexpected soil conditions that might require deeper foundations, for instance. Maybe claims for extra work can emerge if subcontractors misinterpret drawings. 

So you’ll need to build a buffer into your budget – often around 10% of the total – to cover these additional costs. The more complex your design, the longer the construction process and the greater the risk of change orders. So keep both your contractor and your real estate consultant on tight communication schedules so you don’t get any massive surprises and your schedule stays on track.

Securing Accurate Cost Estimates and Final Cost

You need accurate cost estimates before you actually start doing anything. We’d recommend doing a feasibility study fairly early on, then combining that with a detailed bill of quantities so you’ve got some groundwork for what your costs might look like. As the job progresses, update your forecasts to reflect actual spends, which means you’ll be able to capture every invoice and tie them back to different phases of the build. 

And then when the final cost tally does arrive, you’ll know exactly how your decisions – choosing a basic villa shell vs. adding solar panels – impacted your bottom line.

Take Advantage of Expertise: Real Estate Consultants and Beyond

Needless to say, no one expects you to master every nuance of the UAE’s construction scene. So that’s why you want a real estate consultant to advise on:

  • Land prices
  • Emerging neighbourhoods
  • Development pipelines

Then you’ve got architects, who can translate your vision into compliant drawings. People like quantity surveyors can also refine your estimated costs. 

And you’ll also need a project manager to keep the construction process ticking along (unless you fancy the challenge of taking it all on yourself!). Depending on your scale, you may even tap specialist designers for high end luxury villa finishes or engineers for structural reviews ahead of commercial projects.

How Upscore Can Help

If you’re ready to keep every figure and invoice in one place as you build abroad, consider signing up for Upscore’s Finance Passport! It’s a solid way of compiling all your finances together. 

And if you don’t decide on going through with building your home, you can always get a mortgage somewhere in the UAE – Upscore makes that simple by letting you compare multiple lenders and secure the best deal.

Sign Up for Upscore’s Finance Passport Today!

What Happens to My Private Pension If I Move Abroad?

Somewhere between cancelling your broadband and booking the airport taxi, did you ask yourself: “Wait, what happens to my private pension if I move abroad?” The short answer is that:

  • Your plan keeps running
  • Your money stays invested
  • You still choose how to draw it

The longer answer is a bit more complex, which we’ll get into throughout this article. But the bottom line here is that you’re still in charge of the whole process. Let’s explore the details:

The Big Picture

Most private plans today sit under defined contribution pensions, which means the size of your pot depends on what you paid in and how the investments performed. Fortunately, that structure travels well because the contract lives with the provider, not your postcode. 

So your funds stay with your UK pension provider even when your home address changes, and you keep control of switches and withdrawals through the usual secure portal. 

And when you start taking income, you can direct pension payments to a UK bank account you kept for convenience or to an overseas bank account you use every day. Both routes work, and you can switch between them if your plans change later.

The moment you draw from the pot, tax becomes a thing. Some countries look at residency first and expect you to pay tax locally. In other cases you still pay UK tax on the income because the rules give the UK first call. 

But many pairs of countries also have a double taxation agreement, which sets who gets first dibs here and how the other side treats the same income. It’s a bit long sorting these forms out, but completing the right declaration usually stops the two systems from charging you twice, which is obviously the goal.

Tax, Residency, The State Piece

Your contributions earned tax relief on the way in, which helps explain why revenue authorities care about where you live when money flows out. So if you now live abroad, the local office may ask for a simple declaration, while the UK may stand back if the treaty says so. 

But without a treaty, the UK can actually withhold and make you reclaim it later. It isn’t ideal, but it is linear – and it works better when you read the notes and attach proof rather than guess. You don’t need specialist jargon to sort it out. You just need clear instructions and a copy of your residency evidence.

People often mix private plans with the state side and needlessly create a bit of confusion for themselves. You can claim the UK state pension while living outside the country – which is the essence of a state pension abroad – but it runs on different rails to your private pot. 

The state amount rests on your history of National Insurance (NI) contributions and the rules on uprating where you live. Your private plan sits with your provider, not with the government, and you decide the timetable as long as you meet the minimum age.

Getting the Money From A to B

Ideally, you want the income to land cleanly. Some movers keep a UK bank account open because it smooths the currency swings and helps with bills that still arrive in GBP. Others prefer a foreign bank account so they can budget in the currency they actually spend. 

Your provider can pay either way. You can point the money to an overseas account and change instructions later if you settle somewhere new. Before you rely on the arrangement, send a small test payment and confirm the routing details. A difference of a day can move the rate enough to notice, so choose a pattern that suits your cash flow instead of reacting to headlines.

Transfers and Overseas Schemes

You don’t need to transfer your pot to benefit from living elsewhere. Leaving it in the UK simplifies your protections and contact points. Transfer can still make sense if you plan to stay long term and want local features, but the receiving plan has to meet a standard. 

In UK language, you will see recognised overseas pension scheme used as a label for destinations that qualify, and you will also see qualifying recognised overseas pension in guidance. 

Basically, both of these markers exist to show the scheme meets a published bar. Since recent reforms, you also need to consider the overseas transfer allowance, which frames how much you can move without extra charges. 

The allowance links to your lifetime benefits history, so ask your provider for a written figure before you take advice or sign a form. Any reputable adviser will:

  • Confirm the receiving scheme’s status
  • Explain costs in plain English
  • Model how the income would be taxed where you live

So if anyone rushes you or makes you a promise that sounds too neat, ask for the details in writing. 

Practical Steps That Keep Things Calm

Start with your provider. Tell them you’re moving and update your address; ask which documents they need to keep talking to you. If you plan to draw soon, agree the route for pension payments and decide whether they will land in GBP or locally. 

It also helps if you give the team two ways to reach you so a missed message doesn’t turn into a missed payment. Keep scans of passports and bills in a secure place because identity checks tend to appear when you least expect them. 

Think about the calendar. If you split a tax year between countries, the timing of a withdrawal can change how much you keep. You may choose to hold off until you settle your residency, or you may prefer to stagger small amounts. 

If you still add money to a plan, check what your new status allows. Non-residents face different limits, and the relief rules change depending on the provider and the product. 

Others keep a small regular payment for discipline. Either route can work if you tie it back to your tax position and your cash flow rather than habit alone. 

Keep the Basics in View

The system looks fairly complicated until you bring it back to a simple aim. Basically, you want your income to arrive where you live, and you want the tax to follow the right set of rules – double taxation is the last thing you want. 

And you reach that aim when you keep your provider informed and choose a route for payments. Then match decisions to the framework that covers you. You won’t erase admin entirely, but you can turn it into a quiet routine you review a couple of times a year and then get on with life.

How Upscore Can Help

If you want a clean way to travel with your records and proof, consider Upscore’s Finance Passport! Our platform lets you:

  • Keep key details together
  • Store identity checks you repeat
  • Show a neat history when a bank or provider asks

Having all that stuff in order helps you set the right destination for payments and adjust quickly if your plans shift again.

Sign Up For Upscore’s Finance Passport Today!

Can Expats Buy Property in Australia?

The answer is yes – but it comes with conditions. Australia’s government welcomes foreign investment in property, but it regulates it carefully. Expats (meaning foreign nationals who aren’t Australian citizens or permanent residents) can purchase Australian property, but they face extra:

  • Rules
  • Approval steps
  • Taxes (like capital gains tax and income tax)

Who Is a Foreign Buyer in Australia?

In Australia, the law uses the term “foreign person” to classify who needs special approval to buy property. If you are an Australian citizen or hold permanent residency, you’re not considered a foreign buyer – even if you’re an Aussie expat living abroad. 

As you might expect, citizens and permanent residents (as well as most New Zealand citizens living in Australia) can buy any property without prior government approval. However, anyone else – including temporary residents on visas and overseas investors – is deemed a foreign person so you have to follow the foreign investment rules. 

And being labeled a foreign person isn’t a judgment on character; it’s literally just a legal definition. The idea is to ensure that foreigners buying property do so in a way that benefits Australia. 

The Role of the Foreign Investment Review Board (FIRB)

Any foreign person purchasing property needs to get approval from the Foreign Investment Review Board (FIRB). FIRB is the government body that reviews foreign purchases to make sure they align with national interests, like we mentioned before. 

So before you buy, you apply for FIRB approval and pay an application fee. The fee isn’t trivial; it scales with the property value. For example, buying a house under AUD 1 million incurs a AUD 14,100 FIRB fee, which only gets higher the more expensive your home is. 

Luxury real estate deals can see fees well over AUD 100,000. This is, of course, on top of the purchase price of the property itself. And failing to get approval when required can lead to steep fines or even forced sale of the property, so it’s not something you can skip as an expat.

Most applications by expats are approved, especially if you’re buying a new investment property or building on vacant land (more on those options below). The government mainly wants to ensure the investment adds to Australia’s housing stock. 

What Can Foreign Investors Buy?

Australia sets clear limits on what types of residential property foreign buyers can purchase. The general rule is that expats should invest in new or additional housing rather than competing with locals for what’s already a limited supply of existing homes. 

Established dwellings (i.e. second-hand houses or apartments that have been previously owned or occupied) are heavily restricted for foreign buyers. In fact, from 1 April 2025, the government has temporarily banned foreign persons from buying any established dwelling at all. (This two-year ban, which is in effect until 31 March 2027, was introduced to ease housing affordability pressures.) 

So under the current rules, even expats on temporary visas can no longer purchase an existing house as a home. 

That said, you can see on that link from the Australian Taxation Office (ATO) website that limited exceptions do still exist – for example, if a foreign investor plans to redevelop an old property into multiple new units, that may be considered, since it adds to the housing supply.

By and large, though, established dwellings are off the table for foreign buyers right now. So, what can you buy? 

New Dwellings

New constructions are your main target. New dwellings – like brand-new apartments or houses that have never been occupied – are fair game for expats. Buying off-the-plan from a developer or a newly built home gets easier approval because it’s creating new housing stock. 

Vacant Land

Vacant land is another option for foreign buyers, provided you intend to build a residence on the land within a certain timeframe. The government doesn’t want speculators just land-banking, so if you buy vacant land, you’ll be required to start construction (usually within 2-4 years as a rule of thumb). 

There’s an emphasis on use: if you buy land or a new property, you’re expected to put it to residential use (living in it or renting it out). In fact, there’s even an annual vacancy fee to discourage foreign owners from leaving properties empty  – if your property is unused for over 6 months a year, you may incur a fee equal to your FIRB application fee. 

That makes holding a vacant investment quite costly and is a big incentive to either occupy the home or have tenants.

Other Land

Lastly, note that commercial properties (like offices or shops) and agricultural land have their own separate rules and are not as restricted as residential homes. But for most expats, the interest is in home – from investment property that generates rental income for you to places to live while in Australia. 

Navigating the Australian Property Market as an Expat

It helps to do your homework on the property market and local buying process. Start by researching areas and prices through online property portals like Domain or Realestate.com.au.

These websites list most properties for sale and can give you a feel for what’s available within your budget. And consider how the location of a property might affect its long-term value and rental appeal. Are you looking in a capital city like Sydney or Melbourne, where prices are higher but rental demand is strong? 

Or perhaps you’re eyeing Brisbane, Perth, or the Australian Capital Territory (ACT) (home to Canberra) for more affordable options. 

Once you have a target property, now’s the time to speak with local professionals. A reputable real estate agent can guide you through making an offer or bidding at auction (auctions are a common way to buy homes in Australia). 

Since you’re an expat, you might also consider hiring a buyer’s agent, who are licensed professionals that work on your behalf to find and negotiate a property purchase. They can be especially useful if you’re overseas and can’t attend inspections in person. 

Speaking of inspections, when you find a property you like, try to view it yourself or have someone you trust do so. Pictures online can definitely be deceiving. Then if the property checks out, proceed with those building and pest inspections so you know the home is in good shape.

Legal Conveyancing 

Your solicitor will:

  • Review the contract of sale (which in Australia can be quite detailed)
  • Ensure the title is clear of issues
  • Coordinate the closing (known as “settlement”)

The process and timeline can vary by state – for example, some states have a cooling-off period after signing a contract, but others (like buying at auction in most states) do not. Your lawyer will guide you on this. They’ll also make sure the Foreign Investment Review Board conditions are met and that your purchase is registered appropriately. 

There’s now a requirement for foreign owners to register their property on the national Register of Foreign Ownership, and your conveyancer can help with that too.

How Upscore Can Help

If you’re an expat serious about investing in Australian property, consider getting your finances in order early with Upscore’s Finance Passport! It can help you organize your financial profile and present yourself as a credible buyer to lenders and sellers alike. 

Get your free Upscore Finance Passport today!

Spain Expat Property Tax: Everything You Need to Know

You’ve undoubtedly got this idyllic image of Spain in your head that’s led you to wanting to get a property there in the first place. 

It’s not fun to talk about, but unfortunately there are a bunch of Spanish tax rules and bureaucracy to handle before you get there. Any expat needs to understand these before committing and moving abroad. 

From property tax in Spain to wealth tax and capital gains, there’s quite a lot to unpack here. But we’re going to break down some of your core responsibilities throughout this article so you can start purchasing property in Spain without getting lost in jargon.

Understanding Your Status and Tax Liabilities

Before you start comparing regions along the Costa or scouting city apartments, clarify your non-resident status. Australia and Spain share a tax treaty, but if you spend fewer than 183 days a year there, you generally face non resident income tax rather than full Spanish income tax. 

That’s basically just so the Spanish tax authorities know how to treat your earnings and your annual taxes on any foreign income. Yeah, unfortunately, even if you never set foot in an office, owning a holiday home triggers tax liabilities that you’ve got to face. 

What you can do, however, is prepare for this early on. That will save you a bunch of headaches when the Spanish government mails your tax bill.

The Basics of Purchasing Property

Right, so once you’ve settled where you want to live (or rent out) you’ll need to negotiate a purchase price and perhaps sign a promissory contract. 

At this point, you’ll pay a deposit while awaiting the final contract. The property’s cadastral value (which is maintained by municipal registries) may differ from your purchase price, but both of these figures can actually sway your transfer tax and annual real estate tax bills. 

That said, the transfer tax you’ll end up paying usually varies by region. But expect rates somewhere between 6% and 11% of the declared price. It goes without saying that that tax rate alone can add tens of thousands to your outlay, so definitely factor it in before making an offer.

Annual Real Estate Tax and Municipal Charges

As to be expected, you’ll have regular bills that you’d get anywhere once you own some Spanish property. The annual real estate tax, known locally as IBI, depends largely on the property’s cadastral value. 

Each municipality sets its own municipal tax rates, so your seaside villa might draw a higher bill than an inland apartment. 

On top of that, some towns levy a council tax-style charge for services like rubbish collection or street lighting. These levies run year to year – just make sure you don’t miss a payment as it can lead to penalties or liens against your property ownership.

Wealth Tax: A Different Angle

You’ll end up facing wealth tax if your Spanish assets and global net worth surpass a certain threshold. Naturally, we get that not every owner is going to fall under this bracket, but in regions like Catalonia or Madrid, it kicks in for net assets above around €700,000. 

That includes:

  • The value of your Spanish home
  • Other real estate
  • Financial investments

The Spanish government actually changes these rates every so often, so double-check the current band before assuming you’re safe. Of course, not everyone is going to see a bill, but it’s one of those things that catch many buyers out who thought they only had to worry about once-off purchase costs.

Capital Gains Tax When Selling Property

Should you decide to exit the property market, you’ll need to pay capital gains tax on any profit. To calculate your gains, you basically just compare your purchase price plus documented renovation expenses against the sale price. Then apply the current tax scale, which ranges from 19% for smaller gains up to 26% on anything substantial. 

Non-residents face a flat withholding of 3% at sale closing, but that’s a down payment on the full obligation. 

Lanter, you file a return to reconcile the withholding with your actual liability. Yeah, it’s a lot to think about, but it’s one of those things you’ll want to know about to avoid any sort of surprise down the line.

Renting Out Your Spanish Property

Turning your home into a holiday let brings in rental income, but it also means a few extra forms. Non-residents report gross rental receipts and can deduct certain expenses like interest or community fees before facing the 19% flat rate.

For residents, the rate actually links to your overall earnings under Spanish income tax. But either way, keeping tidy records of rent and insurance is definitely key here because failure to declare rental income can trigger audits by Spanish tax authorities. And they’re swift to chase unpaid sums.

Navigating Non-Resident Income Tax

If your Spanish earnings stretch beyond rent (say dividends from a local company) you’ll deal with non resident income tax on that too. Again, that same 19% flat rate applies to most passive income streams. But you must file a Form 210 quarterly if you earn anything in Spain outside wage income. 

Even minimal yield from Spanish investments or a summer-long rental calls for this form, so set aside a moment each quarter to pay tax and file online.

Other Common Tax Implications

Beyond some of the bigger categories we’ve already touched on, there are a handful of other smaller charges worth considering. 

For example, a stamp duty can apply to mortgage deeds, while some communities tax second-home vacancy. 

And if you plan on renovating, an IVA (value-added tax) may attach to contractor invoices. Then you’ve got wealth tax and inheritance duties to think about if your estate plans include passing the place to your heirs. 

Working with the Spanish Tax Authorities

If you’re used to using local online portals or you don’t even speak Spanish, you’re probably going to struggle a bit when you need to interact with Spanish tax authorities. 

So that’s why most expats appoint a gestor or tax lawyer to:

  • File returns
  • Secure certificates
  • Negotiate payment plans
  • Handle the bureaucracy
  • Translate notices
  • Ensure deadlines aren’t missed

From simple IBI payments to sorting out the whole new property tax proposal, you definitely want a local contact in your corner at this stage.

The Big Picture for Australian Buyers

In essence, you’ve got to think of buying this property not only as a lifestyle investment but as a financial commitment that comes with ongoing costs. Each step – from purchasing property to selling property years later – has a range of tax liabilities that you need to think about. 

So planning for annual taxes and understanding your status for non resident income tax, even just keeping tabs on Spanish tax rules, is something that makes the whole process less overwhelming. 

How Upscore Can Help 

Ready to make your next move with confidence? Sign up for Upscore’s Finance Passport today and get personalized guidance on mortgages across multiple countries – completely free. 

Get your Spanish Finance Passport today!

How to Buy Property in Greece as a Non-Resident

Have you been dreaming of a villa or a holiday home by the Mediterranean? We certainly don’t blame you. But how to buy property in Greece as a foreigner? The good news is Greece joined the European Union in 1981, so it uses the Euro and familiar laws. 

Greece is not going to blow you away in terms of heat (as it might if you were moving from, say, the United Kingdom), but plenty of Aussies are still drawn here because of Greece’s culture and relaxed lifestyle. You could even be thinking about renting out a Santorini loft from Sydney. 

The Greek property market has had its ups and downs. Prices surged strongly in 2021-2023, but they’re still below their 2010 peak. In practice, this rebound means bargains can be found, especially on holiday islands or in rural towns, but conditions are naturally going to vary depending on where you look. 

For context, prices differ widely: as of 2025, prime Athens averages around €2,200 per square metre, whereas touristy spots like Santorini or Mykonos can be near €4,000/m². You basically breathe in Mykonos and you’ve spent €20. 

But if you’re considering investment rentals, note that Greece will ban new short-term rental licences in central Athens starting 2025 to ease overtourism and housing pressure.

Documents and Local Steps

First off, you’ll need a Greek tax number. Known as a tax registry number (AFM), it’s mandatory for the entire purchase process. You apply for an AFM at the local tax office (DOY). (If you can’t visit Greece, a lawyer or accountant can get one for you by power of attorney.) Put simply, no AFM, no deal. 

Next, open a Greek bank account. You’ll want one to handle:

  • The deposit
  • Purchasing property
  • Taxes
  • Utilities

Along the way, you’ve got to gather a few essential documents: Greek authorities will expect your valid passport, the new AFM, and proof of income or tax returns (like when applying for a mortgage at home). You’ll also need a valid entry visa for Greece. Beyond that, Australians face no extra restrictions compared to EU citizens. As long as you have your paperwork in order, Greek officials treat you like a local.

Local Assistance

It’s also very helpful to engage a local real estate agent and a lawyer who knows about the Greek real estate market. An agent brings market smarts – knowing which neighbourhoods suit retirees versus holiday rentals – and they speak the local language of listings and negotiations. 

A lawyer handles due diligence: checking title at the local land registry (Ktimatologio) to make sure the seller is the legal property owner and that there are no surprises like unpaid taxes or illegal additions. This attention to detail helps avoid problems later.

Searching for Properties

Once you’re ready to search, remember that Greece offers a variety of homes. A Greek property purchase can vary from central Athens flats to hillside villas on Crete. Many Australians look at beach towns or islands for that holiday vibe, but also check up-and-coming regional areas. 

Use international property portals or have your agent set up targeted viewings. If possible, visit in person: seeing the view and testing a village’s vibe just can’t be done online. Also ask your agent to gather the last year of utility bills and title deeds in advance – these can reveal hidden costs or needed repairs.

When you find the right place, the offer-to-contract stage begins. You make a formal offer, and if the seller accepts, it’s common to sign a preliminary contract (a compromis) with about a 10% deposit. This locks in the deal under agreed terms (purchase price, closing date, etc.) for both sides. If you later back out without chuse, you’ll usually forfeit that deposit, so double-check everything before signing.

Signing the Deed (Final Contract)

Within a few weeks of the preliminary agreement, the final contract is signed in front of a Greek notary. Both you as the buyer and the seller (who are the current property owners) need to show up for this, each with valid ID and their AFM. 

At the signing, you then have to pay the remaining balance of the purchase price plus all the associated costs. For a resale home, that includes the property transfer tax – typically around 3% of the property’s assessed volume – plus a small stamp duty. (New builds incur 24% VAT instead.)

After the Sale

The notary or your lawyer then registers the sale with the local land registry. This part’s exciting since it legally finalises your property ownership. The title deed is put in your name; only after registration can you truly say you own the house. So until this actually happens, the property isn’t officially yours, no matter what the contracts say. After registration, you can transfer utilities into your name, and the local tax office will send any future property tax (ENFIA) bills to you.

Make sure you’re ready for a few extra costs too. Besides the deposit and property purchases, budget roughly 8-12% of the price for closing costs. These include notary and registry fees, any agent or lawyer commissions, and the taxes we mentioned above. We’d recommend that you keep some euros in your Greek bank account so you can cover these when the time comes.

Additional Considerations

As touched on earlier, Greece welcomes Australian buyers under the same terms as its own citizens. Still, you’ll need to coordinate between two countries, which means: 

  • Setting up international money transfers
  • Converting currency
  • Timing any travel

One practical tip: Australian banks will ask for paperwork when you transfer large sums overseas. Keep your documents ready and consider locking a good AUD/EUR rate (a specialist transfer service can help). 

Tax-wise, expect to pay Greek levies. For instance, Greece charges about 15% capital gains tax on any profit if you sell within five years, and it imposes a modest annual property tax on owners. You’ll also need to report any rental income or profit in Australia, though a tax treaty usually avoids double-taxation.

If you’re thinking about staying there for a bit longer, consider Greece’s Golden Visa. Buying €250,000+ in property (or €500,000 in hot zones) actually earns a residency permit.  This isn’t required just for buying – it’s really an extra perk. Greek bureaucracy can feel relaxed: the notary signing is formal, but expect it to take time. Your Greek lawyer should be able to handle many of these steps for you if you can’t be there in person.

So, if you’re thinking about buying a permanent home abroad or even just a pure investment, make sure you take it one step at a time. The process is straightforward once each requirement is met. 

How Upscore Can Help

To top it all off, consider a tool like Upscore’s Finance Passport. It helps Aussie buyers by compiling and verifying all your financial documents upfront, completely for free! 

Sign up to Upscore’s Finance Passport now!

The Ultimate Moving Abroad Checklist – Everything You Need

Moving overseas – especially if you’re going to somewhere that doesn’t speak the same language as you – can be pretty anxiety inducing. Even if you’re mostly excited about it, you’d have to agree it’s like stepping into the unknown. 

You’ll quickly see how there’s way more to the whole process than just booking your flight when you’re getting ready to leave your home country. That includes gathering a range of important documents and setting up a new bank account. Literally every part of your move needs attention. It’s not just something you do on a whim.

So we’ve made a moving abroad checklist to cover everything you need in order to settle in properly, wherever you’re planning on moving to. This includes things like:

  • Paperwork
  • Finances
  • Health care
  • And more 

Get Your Important Documents and Visas in Order

First things first: sort out your passport, visas, and all those vital papers. You can’t have your passport expiring for at least six months after you set off. Pretty much any major country, including the one you’re probably thinking about travelling to, needs this kind of buffer to let you in. 

So we’d advise applying for any necessary visas or work permits you need for your destination country as soon as you can since the processing can take a while.

Then after that, get every important personal document that you might need. So this includes:

  • Originals (and copies) of your birth certificate
  • Marriage certificate (if applicable)
  • Academic transcripts
  • Any licenses or certificates relevant to your move
  • School records (if you have kids)

And it’s also a decent idea to get an international driving permit if you plan to drive abroad because one of these IDPs proves your Australian licence is actually valid overseas.

Keep these documents somewhere organised in your carry-on luggage. Just make sure it’s safe because you definitely don’t want to lose them. 

It’s also not a bad idea to leave photocopies or digital scans with a trusted friend or relative back home so you’ve got some kind of backup. We get that this might sound a bit overly cautious or needlessly meticulous, but being this way with paperwork only takes a bit of prep and will save you headaches when setting up your new life.

Sort Out Your Finances and Banking

Money matters a lot when you’re making any big move. Obviously it helps if you’ve got more cash to play with, but it’s not even just that. You’ve now got to decide what to do with your Australian bank accounts – will you keep them open, or close them out? 

Notify your bank that you’ll be abroad so none of your cards get randomly frozen when charges suddenly appear from overseas. People tend to keep an account open so they can handle any remaining bills they’ve got back home, but you’ll also want to open a bank account in your new country that you use on a daily basis. 

Ask your Australian bank about international transfer fees or limits too, as you don’t want to be caught off guard by any restrictions your host country might have on money transfers.

Tax Responsibilities

Let the Australian Taxation Office know about your move if you’re leaving Australia for more than a few months – you must tell the ATO within seven days if you’re going overseas for over 6 months. 

And make sure you know what your tax obligations are in Australia and in your destination country so you don’t end up paying double. Australia only has tax treaties with a handful of countries to prevent double taxation, so otherwise you are probably going to be liable for taxes in two places. 

If that sounds complicated, just get in touch with a financial advisor. They can help you through issues like:

Take Care of Health and Insurance

Don’t forget to look after your health during this move. When you go abroad, you won’t have access to healthcare in your host country, so you’ll need to arrange your own health insurance coverage. 

So that means researching international health insurance plans that suit your needs in the new country. And you’ll want travel insurance to cover the actual move itself but also the first few weeks of your life abroad. 

If you have existing policies (for example, private health or life insurance), check with your insurance provider about whether your coverage will still be valid overseas. There’s a good chance you’ll probably have to update or extend your policy.

See your doctor for a general checkup and ask if you can get some copies of your health documents. For instance, keep a record of immunisations (vaccination records for all family members) and any important medical files or prescriptions you’ll need. 

Bringing these along will help new healthcare providers in your destination country understand your history and ensure continuity of care. Pack a basic travel first-aid kit and enough of any prescription medication to last until you can find a local doctor.

Handling Any Loose Ends Before You Leave

Again, start by deciding what you want to do with your house or apartment back home in advance. If you’re just renting, you need to give notice to your landlord. If you own a home, on the other hand, you could either sell or lease the property out to get some rental income while you’re away. 

Figure out what to do with your vehicle as well – you could sell it or arrange for transport overseas if you plan to drive in your new city.

Don’t forget things like cancelling or even just updating some of your services and subscriptions. Obviously things like a Netflix subscription can stay, but you’ll need to notify your utility companies of your move so you can settle any final bills. 

Set up mail forwarding with Australia Post or a private service so important mail reaches you abroad – or just get it sent to a family member’s address. It’s also a good idea to update your contact info to your new overseas address with institutions like:

  • Your bank
  • The electoral roll
  • The Australian Taxation Office

You also need to take care of any legal and personal matters, which could be just updating your will or giving a trusted person power of attorney to handle some of your affairs while you’re gone. And before you hop on the plane, exchange a bit of Australian currency into your destination country’s cash so you have local money in hand when you land. 

Lastly, it never hurts to prepare for the cultural change. Read up on your host country’s customs, and maybe learn a few key phrases in the local language. These are just small steps but you might find it helps you settle in a bit faster.

How Upscore Can Help

Upscore’s Finance Passport compiles all your income and credit history into a single profile, which makes it way easier to share with banks or lenders in your destination country. It’s completely free, and a great way of comparing different lenders when you’re applying for a mortgage abroad.

Sign up for Upscore’s Finance Passport today!

Moving Abroad From UK – Advice and Tips

Ever dreamt of moving away from the UK? We totally get it. Even the summers here rarely get above 20 something degrees, so we don’t blame you for wanting to go somewhere with nicer weather. On the other hand, you might be looking for new work abroad opportunities. And if nothing else, there’s nothing wrong with just wanting to experience life beyond your home country.

So making the leap to relocate is obviously quite exciting, but it’s definitely not without any kinds of challenges. Sure, moving overseas promises incredible new experiences and a chance to reinvent your daily life, but living abroad also means dealing with practical hurdles – including:

  • Different laws
  • Unfamiliar cultures
  • Being far from friends and family
  • Possible language barriers

From visas and paperwork to banking, we’ve got a bunch of tips throughout this article that can smooth your transition. And if you’re actually determined to turn this dream into a reality, smart planning is key. Here are some essential tips to get you started:

Planning and Preparation

Do your homework. Research your destination’s:

  • Culture
  • Climate
  • Visa requirements before you go (and if British nationals need to do anything extra)

Next, you’ll need to notify the UK authorities. Make sure to tell all the relevant government offices (like your local council, HMRC, pension and benefits providers, and the Student Loans Company) that you’re leaving the country. Do this as early as possible so you can avoid any kinds of issues. And keep in mind that your UK citizenship and voting rights aren’t affected just by moving abroad – you remain a British citizen unless you actively change it.

After this you have to organise a few different documents and get your insurance sorted. Start gathering all key documents well in advance – ensure passports (and any visas) are up-to-date, and make copies of vital records (which could be birth/marriage certificates, etc).

Again, you’ll also need to arrange appropriate insurance for your move. Get comprehensive travel insurance (and health insurance if needed) to protect yourself during the move. Finally, budget for other costs like shipping your belongings or getting some temporary accommodation somewhere so you’re not caught off guard. And always make sure that you have enough money set aside to cover your moving expenses and a few months of living costs for safety.

Visas and the Immigration Process

Getting the right visa is essential. After Brexit, British citizens lost their automatic right to settle in EU member states. Not ideal. So this basically means that if you want to move to an EU country, you’ll need to apply for a visa or residency permit. Don’t be put off by this – it’s still all very achievable, there’s just a few extra forms and fees you need to sort out. And in other European countries outside the EU, you’ll have to meet that nation’s immigration requirements.

Every destination country you’ve been thinking about has its own rules, so research the visa options that fit your situation. There are a few common pathways you can go down here, which include:

  • Work visas
  • Family reunification visas
  • Student visas
  • Retirement visas (if you plan to retire abroad)

You’ll generally need to show proof of funds, insurance, and so on – often a job offer for a work visa or sufficient income for a retirement visa.

Start the visa process early, as it can take months. Check the official embassy or immigration website for your target country to get an up-to-date list of requirements. 

And remember, the immigration process doesn’t end when you land – you are probably still going to have to register with local authorities or apply for a resident ID upon arrival. Under the Common Travel Area, you can still live and work in Ireland visa-free.

Finance and Tax Considerations

Handling your finances across borders naturally needs to be a top priority. So, before moving, it’s well worth opening an international bank account that you can use from anywhere. Wise do some good ones. Many banks offer offshore or expat accounts that make managing money abroad simpler. 

An account like this basically lets you hold money and make payments in multiple currencies without constantly worrying about exchange fees. Ideally, set up your new account before you leave the UK – in some cases you might need a local address or visa first, so check the requirements. 

It’s also a smart move to keep a UK bank account open (or open a new one you can access online). That way you have an account in your home country’s currency (GBP) for paying ongoing UK bills (like a mortgage), which also protects you from currency fluctuations.

Furthermore, it’s a good idea to research the living costs and have a think about how you’ll move money (a specialist transfer service or multi-currency account can save on fees). Check the tax considerations too: double-taxation agreements mean you typically won’t pay tax twice on the same income.

Housing and UK Property

If you own a home in the UK, decide whether you plan on selling or renting it out while you’re abroad. Plenty of British expats do this, since it’s just going to be sitting there if not. Selling gives you capital for the move, whereas renting (via a letting agent) can cover your mortgage and provide income (you’ll still owe UK tax on that rent).

And when it comes to getting a house in your new country, research your options and plan where you’ll live for the first few months. Many people rent initially so they can get a feel for the area before committing to buy. You wouldn’t just want to move to whatever location on a whim permanently before realising you hated it there. 

Check online listings and speak with local estate agents about rental costs and neighbourhoods – rents could be lower than in the UK, or much higher in some cities. Also ask about typical lease terms (in some countries landlords want a larger deposit or several months’ rent upfront). 

If you have children or plan to move with family, factor in proximity to schools and safe residential areas – and check what international schools are available if needed.

If you’re thinking about buying property in your destination, learn about the whole process and get professional advice. Laws on property ownership by foreigners generally differ in each country. 

Always have a local lawyer review contracts and make sure you understand all the fees and taxes before you buy. For most people, renting first and getting to know the market is the safest approach. Once you’re settled and financially ready, you can decide if purchasing a home abroad makes sense for you.

Moving abroad is not easy – you might face culture shock or a language barrier – but give yourself time to settle in and you’ll surely enjoy the experience.

How Upscore Can Help

Ready to take the next step? Upscore’s Finance Passport can make your move abroad smoother by simplifying the finance side. It compiles your UK financial history into a profile so you can apply for mortgages in your destination country and even across multiple countries without the usual hassle – all for free!

Sign up for your free Finance Passport today!

Buying A House Abroad – What You Need to Know

If you’re thinking about purchasing real estate in a foreign country you’re probably either looking to get your dream holiday home or just an investment property that’s got global potential. 

That said, it’s not exactly an easy process. Some countries are worse than others, but depending on where you go it’s not always so simple – buying property overseas comes with unique challenges that don’t apply back home. 

So, we’ve put together a few tips to help you make informed decisions when buying a house abroad.

Why Buy Property Overseas?

For both lifestyle and financial reasons, overseas real estate definitely has its benefits. Owning a house in Bali or a condo in Spain is going to be gorgeous for obvious reasons. And at the same time, international property is a class way of diversifying your portfolio as you’re spreading the risk across countries. 

Even if the Australian market slows or property values dip, an overseas asset might still be going strong. Plus, some overseas markets offer lower entry prices or higher rental yields than expensive Aussie cities which means you’ve got plenty of opportunities for healthy rental income from tourists or expats.

Investing abroad also lets you tap into growth in developing markets. While Australia’s housing is among the world’s priciest, some overseas markets are much more affordable. Just remember, a rock-bottom price doesn’t guarantee a profit – a cheap home in a struggling economy might stay cheap if demand never rises. Needless to say, thorough research is essential before you buy in an unfamiliar market.

Picking Your Location (and Knowing the Rules)

You’ve obviously got to find some kind of balance between where you’d like to live and how practical it actually is to live there – from Portugal to New Zealand. So before you fall in love with a location, check the fine print: can a foreigner even buy there? 

Property laws vary widely. Some countries make it easy – the USA and UK, for example, place few restrictions on foreign buyers. Others do the opposite: Iceland, for instance, only lets citizens or residents buy property, and Canada has recently barred foreign homebuyers. Always verify what foreign investment is permitted (or forbidden) in your country of choice.

New Zealand is a special case. The Kiwis restrict most foreigners from buying homes, but thanks to Trans-Tasman agreements, Australians are treated like locals when purchasing residential property. That makes NZ one of the easiest markets for Aussies to enter. And it’s naturally got a bit of that familiarity. Just don’t assume it’s cheap – New Zealand’s median property price in 2024 was actually higher than Australia’s.

In other parts of the world, don’t be surprised when you see how many unique and bureaucratic rules there are. Bali is a long-time favourite for Australians, but Indonesian law doesn’t allow foreigners to own freehold land. 

Foreigners can only buy Bali property under leasehold or “right-to-use” arrangements – freehold titles are reserved for actual Indonesian citizens. That hasn’t stopped people from flocking in; post-pandemic, Bali’s property market has boomed since foreign buyers bought up loads of the villas in hotspots like Seminyak and Ubud. 

In contrast, foreigners can buy freely throughout much of Europe, although you’ll still navigate a different legal system (often involving notaries and translated documents).

Know the local rules inside out before you commit. It’s wise to get advice from local real estate agents or buyers agents who know the language and process. Having a trusted expert on the ground can save you from costly mistakes in a foreign market.

Financing and Currency Considerations

Financing an overseas property can be trickier than getting a loan at home. Since most Australian banks won’t accept an overseas property as collateral for a mortgage, one common solution is to utilise some of the equity in your Australian home so you can fund the purchase.

On the other hand, some overseas lenders may finance your purchase, but be prepared for stricter terms. That could be larger down payments or higher interest rates for foreign borrowers.

Buying in a foreign currency also means you’ve got to worry about exchange rates. A weaker Aussie dollar can make your purchase pricier or shrink returns when you convert the rent back to AUD. You could definitely soften this impact a bit by borrowing or just keeping the funds in the local currency, but always budget a buffer for currency swings.

Handling Taxes and Legal Hurdles

It’s critical that you understand some of the tax implications and legal processes that are involved when purchasing property abroad. Many countries charge stamp duties or transfer taxes on real estate purchases, plus ongoing property taxes. Some even add surcharges for foreign buyers, so you naturally need to budget for some of these extra costs.

Then consider Australian taxes. If your overseas home is an investment property, the ATO will tax your foreign rental income just like rent from an Australian property (with credits for any tax paid overseas). 

But if the property runs at a loss, you may be able to deduct it under Australia’s negative gearing rules, and any capital gain on sale will be taxed back home. In short, the tax man wants his cut whether your place is in Melbourne or Madrid.

And then on the legal side you also need to be prepared for a different buying process. You might need to:

  • Hire a local lawyer or notary
  • Get documents translated
  • Obtain special ID numbers to buy as a foreigner

Tenant and property laws can also differ quite a lot. For example, some European cities cap rent increases and limit your returns on rental properties. So just stay aware of the local regulations so you don’t get caught off guard.

Managing Your Overseas Property

Finally, owning a home abroad means becoming a long-distance landlord or caretaker. Managing maintenance and tenants from afar is challenging – even a simple leaky pipe can turn into a major hassle when you’re thousands of kilometres away. 

That’s why it’s so common to see people hire a local property manager, especially if you plan to use the home as a rental property. A good manager can handle tenants and repairs, but you’ll need to budget for their fee and trust them with your asset. 

And then even with their help you could still have a bunch of random emergencies from a different time zone that you’d need to deal with.

Try to visit the property (or have someone inspect it) before you fully commit. Then after the purchase, it doesn’t hurt to visit it occasionally to ensure the home is being maintained as expected. 

Stay in regular contact with your property manager or neighbours so you hear about any issues quickly. 

How Upscore Can Help

One way to make your journey easier is to get your finances in order upfront. Upscore’s Finance Passport can streamline the mortgage process when you buy property abroad. It lets you use your Australian financial history to access home loan offers in multiple countries.

You can apply for non-resident mortgages online and compare rates from various lenders – all before you even hop on a plane and for free!

Sign up for Upscore’s Finance Passport today!

Instagram Facebook Linkedin

© – Upscore. All Rights Reserved.

Upscore Ltd is registered in England and Wales (Company number 14707637). Registered office: 1-2 Charterhouse Mews, London, England, EC1M 6BB.

Licensed by the Information Commissioner’s Office (Licence number ZB533439).

Upscore Ltd is authorised and regulated by the Financial Conduct Authority (FCA), reference number 1011029. Upscore is a credit broker, not a lender. All credit is subject to status. Upscore might receive a commission from the lender if you are accepted for a consumer credit product.

Register
HQ

1-2 Charterhouse Mews, London, England, EC1M 6BB.

© 2024 All rights reserved