International property payments
Whether you're a South African buying property abroad or an international buyer investing in South Africa, our expert team is here to help.
Whether you're a South African buying property abroad or an international buyer investing in South Africa, our expert team is here to help.
Buying a property abroad is an exciting endeavour, whether you’re looking for a new home or an overseas investment.
In many ways, buying overseas is the same as buying in the UK. However, there are some key differences that are important to understand.
Below we go through the things you need to consider when you’re planning to buy a property abroad, from navigating the rules and regulations to securing a great exchange rate on your currency transfer.
Our handy guides provide lots of useful information about buying international property.
Spain is one of the most popular destinations for British expats and holidaymakers alike, and it’s easy to understand why.
From some of the world’s largest cities to small towns set in wild landscapes, the diversity of options caters to a range of tastes.
The most popular country for British expats, and a firm favourite among holidaymakers too, with the climate ranging from temperate to tropical.
From planning your budget to sealing the deal, here are the steps you need to take when buying property abroad.
The first step is to find out what you can afford. Remember to factor in things like taxes and shipping costs, as well as translation and legal fees.
It’s important to seek expert advice early on. Find financial and legal advisers with experience in overseas properties, and perhaps hire your own translator.
You'll want sort out your finances as early as possible. If you’re borrowing to buy a property, get an offer in principle from your mortgage provider.
Cast a wide net by using various local, national, and international estate agents. It’s also best to research and visit the area where you want to buy.
Ready to buy? Time to agree a price. Knowing the market can help in negotiations, and bear in mind there may be cultural differences around bargaining.
It’s now time to sign the contract and ensure the seller has been paid in full. Depending on the country, you may need to sign the contract in person.
There are plenty of reasons you might want to buy a property abroad, from having your own private hideaway to diversifying your investment portfolio.
Many people are drawn to the allure of having their own holiday home abroad. It can be better value than renting accommodation, particularly during peak season, with the added benefits of familiarity and fond memories.
Or perhaps you’re moving country and need somewhere new to live. This could be a temporary home from home while you’re working abroad, or the perfect place to retire overseas and settle down.
Buying property abroad can also bring in an income. When you’re not relaxing there yourself, you could rent your property as a holiday let. Or you may choose to invest in a property to rent full-time.
Real estate is often an excellent investment on its own, with properties increasing in value at a relatively fast pace, so you may buy with the aim of selling it on for a profit. This can be particularly effective if you buy in a country where the local currency is relatively weak.
Every country has its own rules and regulations around buying and owning property, so it’s important you know what these rules are and understand how they impact you.
Some countries have restrictions on foreign buyers, such as requiring residency or a foreign buyer’s permit. Make sure you check if any restrictions apply to you.
Many countries have different laws around buying, letting out, and developing property. A good estate agent and independent lawyer can help you navigate local laws.
Buying a property overseas can come with additional taxes, such as a tax on rental income or a property ownership tax. Find out what you’re liable for and include it in your budget.
There are different ways you could fund your overseas property purchase. Each has its own pros and cons, so it’s good to consider your options.
If you have the money available, buying with cash may be simplest way to purchase a property overseas. You won’t have to arrange or repay a loan, and it may give you an advantage when negotiating the purchase.
It’s important that you budget carefully to ensure that you have enough cash to cover the purchase and any additional fees or costs. And because you’ll be transferring a large amount of money abroad, it’s vital that you get a strong exchange rate.
Many people may not have enough in existing savings to purchase a property outright. However, if you already own a home then you could release equity by remortgaging your existing property.
Remortgaging comes with costs: your new repayments will be higher and you may be charged an early repayment fee. However, you could potentially get a better interest rate on your new deal, and it may be easier to secure a new loan with your existing lender rather than getting an additional loan with a different lender.
Another option is to secure a mortgage from your local bank. First, you’ll need to find out which banks and building societies offer loans for international properties, and you’ll need to check that they cover the country where you want to buy.
Using a UK bank, rather than a bank overseas, can make things simpler. They’ll have access to your credit history and you can arrange the mortgage in your own language, so the process may be swifter, smoother and less expensive.
Finally, you can apply for a mortgage from an overseas lender. They will have a better understanding of the local laws, regulations and market, and so may be able to provide more guidance. You could also potentially get a better interest rate, and you may have access to a wider range of mortgage products.
However, using an overseas lender could come with additional costs, such as translation fees, and it can also be difficult to secure an overseas mortgage as a foreigner. It's also worth noting that you’ll need to meet your payments in a foreign currency, so you may need to make regular overseas money transfers.
When buying property abroad, you’ll likely need to make multiple money transfers overseas.
If you’re buying with cash or you have a sizeable deposit, you’ll need to make a large money transfer. Getting a strong exchange rate and finding the right time to transfer can potentially save you thousands.
Once you own a property you may need to pay ongoing costs, such as a mortgage or utility bills. Having a regular transfer plan can simplify things, while fixing the exchange rate can protect you from currency volatility.
We’ve been helping people transfer money abroad for almost 30 years, offering excellent exchange rates and specialist support.
Transfer provider of the year 2023
Experts in currency
R234bn transferred each year
Transfers to 120+ countries
By working with us, you could get a much better deal on your currency transfers.
This is because we offer highly competitive exchange rates and we don’t charge transfer fees, so you get more from your money.
As specialists in currency transfer, we also offer a wide range of services to help you navigate the markets and find the right time to transfer, which can make all the difference when you send money overseas or move funds back to South Africa.
Expert support can really simplify the process of buying or selling an international property.
As a Currencies Direct customer, you’ll have your own dedicated account manager. They’re on hand to help in any way they can, from providing market insights to supporting you through a transfer.
It’s their job to help get you a great deal on your currency transfer and make the process as smooth and simple as possible.
With over 30 global offices and a team of more than 800 currency experts, we're on hand to provide local insights, tailored support and invaluable guidance.
Sending money abroad should be simple. With us it is.
Over the phone or register online and one of our dedicated account managers will call you to help you with the rest.
Including free SARS tax clearances, SARB or exchange control approvals and so much more.
We'll help you pick the right time to move your money so you secure a great rate.
Via bank transfer, debit card or your wallet balance.
We'll get the currency where it needs to be swiftly and securely.
Your security is our priority. We have measures in place to keep your funds safe, and we’re here to help you protect yourself from fraud. There are important steps you must take to protect yourself from fraudsters, including checking that your payee is genuine and that their account details are correct.
Buying a property abroad comes with lots of legal considerations, both in the UK and the country you’re buying in, such as conducting searches, signing the title deed, and navigating taxes.
Because laws change from country to country, it’s important that you look into the legal considerations specific to the location you’re buying in. It’s also a good idea to seek advice from an independent lawyer who has experience in that country.
Brexit has had an impact on buying property abroad, but in some countries more than others. In France or Spain, for instance, very little has changed. Whereas in Denmark, Brits now need a visa and a residence or business permit to buy property.
Depending on the country, you may see some differences in taxes or obtaining a foreign mortgage. However, the main difference is that UK citizens can now only spend 90 days in a 180 period within the Schengen Area. If you want to stay longer, or are permanently moving abroad, you’ll likely need to apply for a visa.
Yes, different counties have different restrictions and limitations on foreigners owning property.
In some countries, such as Switzerland and Austria, you may need to apply for a permit. Other countries place restrictions on where you can own a property, e.g. far from international borders, while others ban foreign ownership completely.
Take a look at our country-specific pages to see if any restrictions apply where you’re looking to buy.
Deposits for buying abroad tend to be higher than in the UK, and can range from 15% to 50% depending on the country.
It’s important you look at the specific country you’re considering buying in and make sure the deposit is within budget.
Yes, you can track all your transactions on your online account or in our app.
On the website, use the top menu to go to the ‘Activity’ page. You’ll be able to see any transfers you’ve recently started under the ‘Instruction’ tab.
If you’re using the app, go to 'Activity' from the bottom menu bar. This will show you your activity feed, including the status of each transfer.
As with in the UK, the buying process can vary significantly depending on the situation. Expect it to take anywhere between two and nine months, or perhaps even longer.
In terms of currency exchange, the transfer itself will generally take between one and two days to go through once you’ve sent us the payment, although this can also depend on the currency and the receiving bank.
If there are any issues with the currency transfer on our end, we’ll get in touch with you as soon as possible.
If you notice an issue, you can contact us on +44 (0) 20 7847 9400 or email [email protected] and we will investigate. Our operations team can put a trace on your money to track its progress and then work to resolve any issues.
If something goes wrong with the property transaction, then it’s best to get in touch with whoever’s involved in the sale. This may be your lawyer, notary, mortgage provider and/or the seller.
We’ll do our best to help if we can, so please do get in touch if you want guidance. For instance, we may be able to submit a ‘recall of funds’ to our banking partners if you send money to the wrong person.
While currency is our expertise, we like to offer help and support wherever we can.
Our website contains lots of useful pages on different reasons why you might want to buy a property, such as moving overseas or working abroad, as well as country-specific guides. We also offer a wealth of articles and blog posts providing useful tips and information about purchasing property overseas.
In addition, many of our team members in our overseas offices have local knowledge and years of experience. They may be able to answer questions about a particular area or point you in the right direction for more information.
