What will Brexit mean for Buying Overseas?

As we head towards the UK’s final exit from the European Union, uncertainty remains around what Brexit will mean both for the resident of the United Kingdom, and for those who trade with them. 

While the aftermath of the UK’s departure is still open to interpretation, there are still excellent opportunities for UK buyers to purchase overseas, and with one of the most stable housing markets in the world, the UK is likely to remain incredibly attractive to those wishing to buy here.

Buying in Europe after Brexit as a UK Citizen

While the details, even at this late stage, are still being ironed out, the fact is that UK buyers will still be able to purchase in Europe after Brexit. However, whether this will increase initial costs, take longer, or have tax implications for rental income remains uncertain. 

The default outcome could that, without a solid agreement, UK nationals would be treated like any other non-EU citizen. This would mean there is a requirement of a tourist visa to enter and stay in an EU country for up to 90 days, and long-term visas to obtain legal residency. 

That said, most EU 27 member states have already confirmed they will allow UK nationals to remain for up to 90 days without having to obtain a visa. Even now, EU citizens should apply for residency in another EU country if staying longer than 90 days, though most countries have not enforced this fully because of the EU’s freedom of movement rules.

Of course, should the pound drop against the Euro, costs to buy overseas could become prohibitively expensive in the shorter term. 

Additionally, several European countries already provide a Golden Visa – giving residency to those who purchase property generally at a value of €500,000 or more.

Global Opportunities

At Benoit Properties, we have seen a shift from UK buyers looking outside of the European Union for investment opportunities in locations including the USA, Turkey, Thailand and Mexico. 

While of course, there are still individual requirements for each of these countries, it appears that certainty around what is needed and expected is driving the trend. Additionally, entry costs outside of the EU can be more attractive, and with countries such as Turkey offering great value against the pound, looking outside of the Eurozone can offer outstanding deals.

Buying in the UK after Brexit

The UK has long been established as a prime market for overseas investors thanks to the stable governance, profitable capital growth and favourable exchange rates. 

The UK continues to be a top choice for investors in the property market, led by London, which remains top of the Global Cities 30 Index in Europe. With the capital listed as the second-best city in the world to invest in property.

EU buyers will of course still be able to buy in the UK, as has always been the case, there are no restrictions on overseas buyers wishing the enter the market, indeed currently the most common foreign nationalities that buy property in the UK are actually from outside of the EU, with buyers from the US, China, UAE, India, and Russia making up the bulk of foreign buyers. 

However, without residency, there may be additional hurdles to overcome – but how they will look remains to be seen.

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