HIFX, the bulk foreign currency operation, believes that Spain and France are still the favourite places for Britons buying property abroad, but Bulgaria, New Zealand and Canada are growing in popularity.
The company cited Spain as the country for which they had carried out the most currency transactions (25%) for property bought abroad in February. France accounted for 18% of the transactions and Australia accounted for 11% of transactions, compared to 17% of transactions the previous month. Nine per cent of the enquiries the company received in February related to Bulgaria, and 5% related to New Zealand. Canada was another popular choice, which the company attribute to the growth in ski chalet purchase.
Our view
As ever, people are buying property abroad without taking proper tax advice first. For example, did you know that in Spain, Inheritance Tax is payable on your property on first death of either you or your spouse? This means that many, particularly British, non resident owners, get huge tax bills in Spain both on sale and on death.
The same lack of knowledge about ownership in Australia and New Zealand may land people in trouble.
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