International Real Estate: Advantages, Tips, and Countries in Focus

More Than Just a Dream: Reasons for Buying International Real Estate

International real estate offers numerous advantages, ranging from personal use to diversifying one's investment portfolio. The main reasons for buying international real estate are:

Holiday Property and Second Home: Many people dream of leaving their everyday life behind and spending their vacations in their own international real estate property tailored to their taste and in a pleasant environment. Buying a house or apartment abroad allows you to return anytime without much luggage. Unlike rental properties, the furnishings and equipment of international real estate correspond entirely to your own standards.

Retirement Residence: Buying international real estate is particularly suitable for those who want to spend their retirement in a warmer climate or an attractive environment. Whether for wintering in warmer regions or as a permanent residence – international real estate allows you to enjoy life in idyllic regions throughout the year.

Capital Investment: International real estate has always been a stable investment. With international real estate, investors can benefit from different market conditions and currency fluctuations and diversify their portfolio.

Rental Yield: Many owners rent out their international real estate and thus achieve attractive returns, which, depending on the country and location, can even be higher than in domestic markets.

Popular Countries and Regions for Buying International Real Estate

Many countries offer a variety of appealing opportunities for buying international real estate. Each country has its own charm and interesting potential for those who want to buy an apartment or house abroad. International real estate in Europe usually scores with its proximity to home and its distinctive style due to different cultures. Holiday properties in non-European countries, on the other hand, are suitable as second homes, for rental, or for personal use away from everyday life at home. In Europe, international real estate is particularly in demand in these countries:

• France seduces with its charming country houses in Provence and luxurious villas on the Côte d'Azur. This international real estate is ideal for lovers of culture and Mediterranean lifestyle.

• In Spain, sunny coastal regions like the Costa del Sol and the Balearic Islands attract with a perfect mix of relaxation and vibrant nightlife. Whether a rustic finca in picturesque countryside or a modern apartment on the beach is a matter of personal taste. This international real estate is suitable for permanent or long-term rentals as well as for short holidays or your own vacations.

• Italy impresses with historic estates in Tuscany and stylish apartments in cities like Rome or Milan, combining culture, cuisine, and history. Dreamy international real estate near beaches can be found on the islands of Sicily or Sardinia as well as on the Amalfi Coast.

• Germany offers stable and well-regulated real estate markets in metropolitan areas and holiday regions such as Baden-Württemberg, Bavaria, or the Baltic Sea. Those interested in international real estate are convinced by German holiday properties due to high quality of life and economic stability. This and the good rental opportunities attract investors from all over the world who want to buy a stable-value property abroad.

Engel & Völkers is at your side in all these regions and a total of 35 countries worldwide with in-depth market and local knowledge as well as tailored solutions.

Legal and Financial Aspects of Buying International Real Estate

Buying international real estate brings with it a number of legal and financial aspects that may differ from those in your home country. First, you should inform yourself about the specific legal framework, as each country has its own laws and regulations for property acquisition by foreigners. While some countries like Switzerland or the Netherlands impose restrictions on second homes or rentals, others are open to foreign investments. Comprehensive research and consultation with local experts such as lawyers and notaries are therefore recommended.

Tax regulations also vary from country to country. In advance, inquire about relevant taxes such as property transfer tax, ongoing property taxes, and possible country-specific charges such as a potential capital gains or speculation tax. Also, check if there is a double taxation agreement between your home country and the target country for the international real estate. If your main residence is in Germany and you rent out your property abroad, the rental income must be declared in your tax return.

Financing international real estate can also be complex. Banks often offer special financing options for properties abroad, but conditions such as interest rates and loan-to-value ratios vary depending on the country and institution. Higher equity or other real estate ownership can also facilitate the financing of international real estate.

Additionally, you should be aware of currency risks, as exchange rate changes can affect the purchase price of international real estate. Careful financial planning and possibly the use of currency hedges are therefore advisable.

Further Considerations for Acquiring International Real Estate

If you're planning to buy international real estate, there are other points to carefully consider. These include:

• Comprehensive research on the local real estate market to realistically assess prices, demand, and developments.

• Clear idea of the planned use of the international real estate (second home, holiday property, permanent residence, or capital investment).

• Precise calculation of construction and renovation costs for the international real estate, as these often differ considerably from domestic costs abroad.

• Knowledge of the local language and culture is helpful, as it can facilitate the buying process for international real estate.

International Real Estate: An Interesting Investment with Personal Benefits

Purchasing international real estate can be a rewarding and exciting venture that brings both personal and financial advantages. However, it is essential to thoroughly research the legal, financial, and cultural frameworks in the target country before buying international real estate.

Italy, Spain, Germany, and France are among the most popular countries for buying international real estate. Breathtaking landscapes, interesting culture, and pleasant climate, along with proximity to the home country, are some of the reasons why many people want to buy an apartment or house abroad. Those who consider the mentioned aspects and undertake careful planning can benefit from international real estate in the long term.

With Engel & Völkers, you can find the right international real estate property for every taste and budget. Our real estate agents are familiar with the respective language as well as the regional customs and peculiarities of each country. Buy your international real estate with our support more securely, confidently, and comfortably.