Natalie There are many countries where Brits buy holiday homes. According to the Telegraph newspaper, to date, roughly 840000 Brits own second properties in popular destinations around the world. Indeed, British buyers lured by ideal property prices, lower cost of living, and beautiful beaches love the concept of heading to sunnier shores.
Sometimes, holiday homeowners also retire to live out their later years in the home under the sun. Whether buying apartments or villas, the towns of European countries further beckon foreign buyers, even after Brexit. But where are Brits headed to, and what are the reasons why? In this article, we look at popular destinations beyond the beautiful beaches and swimming pools to discuss severe matters like money, visas, and making your purchase a wise investment.
Where do Brits Buy Holiday Homes?
1: Spain and the Delightful Costas
Ah, Spain is a time-honoured favourite the British have flocked to for decades. Whether this be the Costa Blanca or Costa del Sol, Spanish notary offices report that British buyers are still the top nationality, alongside the Germans. In 2023, 12,740 Spanish property purchases involved a British buyer. One might be surprised, given that British buyers are still non-EU citizens; however, the new buyers don’t know about life in Spain for foreign homeowners before Brexit.
With thousands of properties for sale across the board, most buyers head south for the more vibrant property market and, of course, higher temperatures. Spain’s impressive network of airports makes getting to and from Spain for a quick getaway easy, and popular destinations include Benidorm, Benalmadena, and Mijas. (Where do Brits go in Spain?)
2: Portugal for Holiday Properties
Property buyers are often surprised by this attractive destination since they associate it with high prices and places like the Algarve. Yet Portugal comes through with affordable property in other housing markets nationwide. Demand is rising, and the predicted return on investment is promising over the mid-to-long term.
It is an ideal country of choice for those who don’t want everything Spanish but still want to be close to British shores. The capital, Lisbon, is popular with mainly attracting working ex-pats. Those looking at holiday apartments for sale would do well to look at the Algarve or the Silver Coast. Be aware that real estate no longer applies for the golden visa option. (Guide to buying property in Portugal)
3: France for Property Ownership
While France is famous, we have noticed that the country has less to have with beaches, year-round sun, and more culture and the close distance to the UK. With varied property types, from townhouses to rural village houses, France is moving slowly and is ideal for holiday rest. Purchase prices are not the cheapest, and keen buyers might be frustrated at the red tape.
Still, the country has much to offer for long-term investments. One notable trend is that the French Alps are picking up with buyers seeking cultural heritage and a return to nature. With a deep history, there is concern about global warming and ski resorts, but towns are turning into year-round destinations. For Brits, the historic cities have much to offer.
4: Turkey for Stunning Beaches
As the third country with the bluest flag sandy beaches and 300 days of sunshine a year, Turkey presents an ideal location for holiday and investment properties. With a rich, ancient history, most holiday home buyers head to either the Mediterranean or Aegean coasts for the tourist coastal resorts offering sun, sea, and sand in abundance.
Property buyers should know they have just changed their rental income and license laws. Previously, holiday homeowners could get a decent rental yield for periods when they weren’t using it, but this isn’t the case anymore. However, expect a quick buying process; and after five years, you don’t have to pay any capital gains tax. To find the perfect property, head to the Fethiye, Antalya region, or Bodrum if you want a luxury property investment. (Best places to buy property in Turkey.)
5: Cyprus and Strong Demand
Despite the distance from British shores, this popular holiday destination is growing in demand as buyers see potential healthy returns on their investments and somewhere to retire in later years. Foreign money goes far on this tiny island, but overseas buyers should decide on the north or south for their holiday home search.
The north is under the Turkish Republic and uses the Turkish lira, and here, property prices tend to be cheaper, whereas the south is under Greek’s control, and they use the Euro. Larnaca International Airport is the primary connection. Naturally, as an island, expect gorgeous beaches in abundance. (Best places to buy in Cyprus.)
Can British Citizens Still Buy in Europe After Brexit?
Yes. The EU does not govern home ownership rules for member countries. You would buy as a non-EU national rather than a European national. The main difference to check is the visa rules and how long you can stay in that country as a tourist. Most countries let you stay up to 90 days out of 180 days. Anything after that, you will need to apply for a residence visa.
Getting an Overseas Mortgage
Some buyers head to British banks to finance their property purchasers through the many foreign mortgage options. Others look to foreign countries for their mortgage types for foreign buyers. From our experience, you will incur higher interest rates and mortgage fees than in the UK.
Use international mortgage services to find the best rates and terms for your property purchase. Usually, foreign mortgages require a deposit of 30 to 50% and factor in currency exchange rates. Remember that currency fluctuations will occur, and you should include a buffer zone in your financial planning—also, factor in international bank transfer fees.
Can I Rent Out My Holiday Home?
You need to seek legal advice in the country where you plan to buy and the legal laws regarding rental property. Separating into long-term and short-term rentals, the latter, often focused on sites like Air BNB, was popular with holiday home ownership of two-bedroom apartments to generate passive income and cover their running costs.
However, many countries have changed their laws, so owners need to get a license, adhere to specific regulations, and, in Turkey’s case, be capped at 100 days. You must check income tax regulations by seeking financial advice.
Is it Worth Buying a Holiday Home Abroad?
With a pent-up demand for holiday homes, many ask us if it is a wise investment. The answer will depend purely on your reason for buying. However, some of the benefits and reasons include…
- It is a great base to see life in alternative destinations
- Owning an overseas home can be used for retirement in later years
- Buyers of property have easy access to many European towns within a short flying distance
- The sale price in many countries is lower than that of UK holiday home ownership.
- UK-based lenders have many options for financing
- Alternative method to invest sums of money
- Enjoy extended periods abroad without worrying about hotels
- The potential for an increase in property values makes for wise investing
Pitfalls of Owning a Home Abroad
- Exchange rate fluctuations make it hard to budget every month
- Additional ongoing costs for maintenance and repairs
- Property transactions differ from UK purchases and are new to UK buyers.
- Different culture and lifestyle
There is still the UK!
Sometimes, people decide owning a holiday home overseas isn’t for them. Additionally, after Brexit and the COVID pandemic, more people have decided to buy holiday homes in the UK. Places like Norfolk are popular, and for those who seek a rental income, the onsite management teams will handle the books and guarantee a return.
Our Services Will Help
We are Spot Blue International Property, and we help potential property owners find their dream home with our expert advice that saves time and money. Call and chat more with an agent about where Brits buy holiday homes.
We also answer questions about additional costs, property listings, or information comparing country to country. Alternatively, to search for property, see our listings here or follow us on Facebook to receive regular updates on the overseas property markets.
