Whether you’re dreaming of a beachfront villa, a European buy-to-let, or a retirement retreat, buying property overseas remains a top goal for many UK investors. But post-Brexit rules, cross-border tax complications, and off-plan development risks mean 2025 buyers must tread carefully.
In this guide, we explain how to navigate foreign mortgage markets, avoid common traps in off-plan purchases, and invest abroad with confidence.
Where are UK buyers looking in 2025?
According to Knight Frank, the most popular overseas markets for British buyers in 2025 include:
- Spain – Especially Alicante, Valencia, and Andalusia
- France – Southwest coast, Paris suburbs, and Alpine resorts
- Portugal – The Algarve, Lisbon, and Porto suburbs
- Greece and Cyprus – Visa-friendly and tax-attractive options
- UAE and Turkey – Yield-led emerging markets
Spain vs Portugal vs Dubai – where Brits should invest in overseas property in 2025
Getting a mortgage abroad: what’s changed post-Brexit?
Can Brits still get overseas mortgages? Yes—but lenders are more selective, and terms may be stricter.
What to expect:
- Larger deposits (typically 30–50%)
- Proof of income in euros or local currency often required
- Fewer high-street UK lenders offering foreign mortgages
- Local brokers often required to access best rates
Tip: Consider using a specialist international mortgage broker who understands Brexit-related paperwork, language barriers, and local valuation procedures.
Tax considerations and double taxation
Buying overseas means navigating two tax regimes:
- UK tax still applies to global income and capital gains for UK residents
- Host country tax rules differ: some charge wealth tax or second-home levies
- Double Taxation Treaties can reduce exposure, but advice is crucial
Inheritance tax planning for landlords – what’s changing in 2025?
Off-plan property abroad: is it still worth it?
Off-plan investment promises lower entry prices and high capital growth—but also carries significant risks, especially in foreign markets where planning systems, legal protection and consumer rights vary.
Red flags:
- Unlicensed developments
- No guaranteed delivery date
- Lack of escrow protection for deposits
- Poor local resale market
Safer off-plan strategies:
- Stick to well-known developers with a strong delivery track record
- Get all guarantees in writing (completion dates, specs, payment stages)
- Work with a local solicitor, independent of the developer
- Use contracts that allow you to walk away with refund clauses
The Italian Job – expert tips for navigating Italy’s €1 home initiative
Legal and practical checklist for buying abroad in 2025
- Check land registry or ownership title in local jurisdiction
- Secure legal translations of contracts
- Ensure property is insurable by UK-recognised insurers
- Confirm access to utilities and infrastructure
- Clarify inheritance rights and repatriation of funds on sale
Final advice: take your time, not just a viewing
Overseas property buying in 2025 isn’t about dreams—it’s about due diligence.
- Visit multiple times, in different seasons
- Ask local agents about resale demand and rental potential
- Don’t buy after one glass of sangria on a long weekend
Get tax advice. Get legal help. And don’t just fall in love with the brochure.
