Frequently Asked Questions
If you are unfamiliar with buying property abroad then it can be quite daunting. This section aims to give an idea of the process involved to help you feel more comfortable. Our property advisors are always available for free and happy to talk at the end of a telephone if you have any queries on any part of the overseas property buying process (see right).
General Questions
Q1 – If I buy ‘off-plan’ with then intention of selling before completion, what are the success rates for ‘flipping’ properties before the 18-24 months?
It is very important to us that our short-term investors have the greatest opportunity to sell on before completion. We therefore only sell a specific % of each development to those wishing to sell on (typically 20-25%). This greatly increases the ability to sell on.
We will also actively market the client’s unit to clients visiting us wishing to purchase near-complete property.
Q2 - What options are there for financing my property?
There are several ways to finance your property abroad. It is very important to have your funding in place prior to your reservation as properties are normally exchanged and completed within six weeks.
If you require finance to fund the purchase of your holiday home the two most common ways are to release equity in your UK property by re-mortgaging or by obtaining a mortgage.
Q3 - Do you have details of the tax implications of my property purchase?
The taxation on your property purchase varies from country to country. For example, Margarita Island is a tax free zone but in Spain you will pay a 7% purchase tax.
We have put together a full guide to taxation in your destination of choice 
click here for details.
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Caribbean (Margartia Island)
Q1 - Are there any tax incentives associated with the purchase of a property in Margarita?
Margarita Island is a tax and duty free zone. There is also no VAT on the island. The
purchaser of a property does not pay any taxes on the purchase. There is a minimal
annual property tax of US$100.
Q2 - How popular is Margarita as a holiday destination?
Margarita is very popular for its all year round weather, beautiful beaches and very friendly people. Playa el Yaque is one of the world’s most popular places for windsurfing. First Choice Holidays take UK holiday makers to a number of high quality all inclusive hotels.
Q3 - Where do the tourists come from?
Visitors come from all over the world, the main countries are Germany, Netherlands, Spain, Switzerland, Canada, United Kingdom, Venezuela and Russia.
Q4 - How easy is it to get flights to Margarita Island?
There are direct flights to Margarita from Canada, Germany, Denmark, United Kingdom, Finland, Netherlands, Russia and Argentina. The majority fly through Caracas, Venezuela, from there it is only a 35 minute flight to Margarita Island. Many airlines are now operating daily flights.
Q5 - Is it easy to get around Margarita Island?
Getting around the island is very easy. There are several car rental companies, taxis are also available at low cost.
Q6 - Do the developments have the support of the Government and local planners?
The developments have full support of all government offices on the island. The development company have also secured full legal title to the land.
Q7 - Can I live on Margarita Island and do I need to apply for residence?
Anyone can own property on the Island regardless of their nationality. There is no need for residency to live on the island. The process is very easy, a temporary residents visa is issued for the first five years, renewed annually. After five years the status changes to permanent residency.
Q8 - Are there modern facilities on the Island?
Margarita Island has all the facilities you would expect from a vibrant holiday island. Large modern shopping centres, with all the well known stores such as: Bulgari, Versace, Tommy Hilfiger (all of which enjoy duty free status). There are a great number of restaurants andbars, many specialising in seafood, but also international cuisine, such as Japanese, Chinese and Argentinean food. A good choice of hotels including five stars hotels with casinos. Cinemas, cultural centres, museums,amusement and theme parks can also be found on the island. The island also has an international airport, several marinas and is a favorite stop off for cruise ships.
Portugal
Q1 - What are the average property price increases in Portugal?
According to the Royal Institute of Chartered Surveyors' European Housing Review 2005, average property prices in Portugal increased by 7% in 2004. Prices had increased by 10% in 2003.
Q2 - What is the rental potential of a Portuguese property?
The rental potential in Portugal is excellent. Portugal is benefiting from a steadily increasing amount of tourist interest, and with the stunning golf courses is rapidly becoming a golfers paradise.
It is very difficult to provide an accurate figure for expected rental income but we will be more than happy to discuss the rental potential of each of our developments.
As an approximate guide, a two-bedroom townhouse, in a good location, with swimming pool, and gardens could expect €1,000 - €1,500 per week during August.
Spain
Q1 - Do you have details of the mortgages on offer in Spain?
There are virtually no exchange controls in Spain, which means that whether resident or not, you are free to obtain a loan or a mortgage against your property in any currency and from any bank in the world. Spanish banks are quite willing to lend to non-resident purchasers of Real Estate, most Spanish banks will lend up to 70% of the purchase price, this does not include the 10% to cover legal fees and taxes. We can assist you in arranging a Spanish mortgage prior to your trip to Spain but you will need to take the following information with you:
1) A photocopy of your income tax return.
2) Three months salary slips.
3) A breakdown of assets and liabilities.
4) Last three months bank statements.
5) If self employed, statements of accounts.
Spanish mortgages are in the local currency of the Euro, the exchange rate fluctuates with the pound and therefore if your mortgage is funded by rental income you should either set up a direct debit from the UK or ensure the rental income from your property is paid into your Spanish bank account.
We can assist you every step of the way by putting you in touch with our mortgage experts when the time comes to pay the final balance on your property.
Q2 - Dependent upon the price and type of property, what kind of rental income can be expected from the developments and are there case examples?
For some developments we can supply specific analysis showing rental potential. We will also supply you with some general rental advice and examples of short or long term lets.
As a general principle in the Costa del Sol, all the annual costs associated with finding on apartment will be covered by 16-20 weeks rental per annum (i.e. Cover mortgage, letting/service fees etc).
Q3 - What are community fees and how much can I expect to pay?
The purpose of the Community is to own and maintain the common areas within the development or urbanization. Each property owner must pay a contribution towards upkeep in the communal areas and the communities services (sometimes dependant on plot size).
Community charges vary according to development. A typical 2 bedroom apartment in a building with a hall porter, swimming pool, and a small garden, could cost between €120/£85 to €300/£215 per month. in a luxury development the charges could be as high as €600/£428.
An individual villa in an estate of villas could be liable for lower community fees as its private gardens and exteriors are not generally maintained by the community. Community fees cover the road and roadside garden maintenance, as well as services maintenance and security.
Canary Islands (Tenerife)
Q1 - Who holidays in Tenerife?
If you're looking for "young fun" style holidays then definately head to Playa del las Americas, possibly Los Cristianos. Otherwise, Tenerife is very much a family holiday destination for people looking for something a bit quieter, superb golfing facilities and a more relaxing holiday.
Q2 - What about the winter months?
Winter is the island's busiest season as there aren't so many places to go in Europe during winter for guaranteed sunshine so everyone heads to Tenerife. Summer is the quiet season oddly enough but other than banks opening on a Saturday (winter only), everything stays the same.
Morocco
Q1 - What is the current economic status in Morocco?
Morocco is an economically healthy country. Annual growth is at 6.8% and its major industries are mining, textiles, tourism and leather goods, said to be the softest leather in the world.
Tourism has grown by more than 18% over the last year, giving it the fourth largest number of foreign visitors in the whole of Africa after South Africa, Tunisia and Egypt.
Q2 - What is the investment potential of Moroccan property?
The building boom in Morocco has been compared to that of Spain 15 years ago. Thanks to a government aim to increase tourism to the country to ten million by 2010, resorts have fast been springing up along the country’s coastline. Backed by King Mohammed VI, many of these developments boast hotels, golf courses, restaurants and, of course, villas and apartments.
It is the support of the King which has turned Morocco into such an attractive proposition. Many ‘emerging’ markets simply lack the basic infrastructure needed to support a burgeoning property market, but King Mohammed’s £2.2 billion contribution will ensure that all necessary facilities and amenities are in place. Put simply, this means that if these ambitious tourism targets are met, Morocco could well be the next holiday hotspot – a move which could only mean good things for the property market in terms of both capital growth and rental returns.
Turkey
Q1 - Who is buying in Turkey?
Traditionally British people have bought property mainly in Mediterranean countries such as Spain, France, Italy and Cyprus as well as popular American destinations like Florida. However, these places have recently become extremely expensive and saturated. More recently those looking for a holiday home or place in the sun have been seeking other alternative overseas destinations.
If you prefer buying a property at a very reasonable price which you can use yourself for regular holidays and somewhere that you can also rent out to get some income in a country where the summer is nice and long, stretching from March to November, a wealth of tourist attractions, then Turkey is definitely an option you should be considering.
Q2 - Are Turkish citizens and foreigners treated differently as property owners?
According to the Turkish legal framework, both Turkish citizens and foreign owners have equal property-ownership rights.
Q3 - Will my property be freehold or leasehold?
In general, properties in Turkey are of Freehold type.