Useful Information
Buying property in FRANCE
Click here to look at a selection of properties in France or read the useful information below about buying property in France. Please remember that, unlike other companies, we do not charge you for our service and the price of the property is the same whether you buy through Selection Property or directly from a developer or local agent.
The purchase process in France depends on whether you are buying a resale property or a new build property.
Buying a new build property in France
Option: Once you have decided to purchase your chosen property, we will take an option for you on that property. Depending on the development, an option is usually valid for up to 48 or 72 hours.
Reservation contract: During that time we will complete and send you the reservation contract, together with clear instructions. The property price, layout, delivery date and staged payments as well as your mortgage requirements are included in the reservation contract. This is a legally binding document which means that the property is taken off the market and the price will not be changed.
Reservation deposit: At this stage, you also pay the deposit on the property, usually 5% of the purchase price, to an account set up by the Notaire (the French notary overseeing the purchase process). It is held in the account until the sale is completed. Please note that the legal currency in France is the Euro and properties are therefore bought in Euro. We can help you to ensure you benefit from excellent exchange rates, no commission, no bank receipt charges and protection against fluctuating exchange rates.
Cooling off period: Once the reservation contract is countersigned by the developer, there is a 7 day cooling off period. If you decide not to proceed with the purchase during this period, you should inform the developer by registered post.
Legal advice: During the purchase process, it is important that you obtain advice from a bilingual adviser qualified in French law. The adviser should liaise with the notaire on your behalf especially with regard to inheritance law and the content of the final contract. We can provide you with a list of independent, qualified, experienced and bilingual legal advisers.
Completion: Completion of the purchase usually takes 3 to 4 months. During that time the Notaire draws up the Acte de Vente (final contract). On the day of completion, you can attend the Notaire’s office with the developer to sign the final contract. Alternatively you can arrange a Power of Attorney through your legal adviser. Notaire’s fees (about 3 to 4%) are paid at this stage. The property is officially yours when the Acte de Vente has been signed.
Staged payments: most new build properties are bought off plan and the purchase is often completed up to a year before the property is delivered. The balance on the property price is paid in stages until the keys of the property are delivered to you.
Buying a resale property in France
The compromis de vente: when you have decided which property to purchase, you and the vendor sign a Compromis de Vente (reservation contract). This is a legally binding document which means that the property is taken off the market and the price cannot be changed. Items such as price of the property, fees, lead/asbestos/termites report (where applicable), planning permission and mortgage requirements are included in the document. A copy of your passport, birth and marriage certificates will be required to draw up the “Compromis de Vente”.
Deposit: At this stage, you also pay the deposit on the property, usually 10% of the purchase price, to an account set up by the Notaire (the French notary overseeing the purchase process). It is held in the account until the sale is completed. Please note that the legal currency in France is the Euro and properties are therefore bought in Euro. We can help you to ensure you benefit from excellent exchange rates, no commission and no bank receipt charges.
Cooling off period: Once the Compromis de Vente has been signed, there is a 7 day cooling off period. If you decide not to proceed with the purchase during this period, you must inform the agent/vendor in writing by registered post.
Legal advice: During the purchase process, it is important that you obtain advice from a bilingual adviser qualified in French law. The adviser should liaise with the notaire on your behalf especially with regard to inheritance law and the content of the final contract. We can provide you with a list of independent, qualified, experienced and bilingual legal advisers.
Completion: completion of the purchase takes about 3 months, during which time the Notaire conducts searches and draws up the Acte de Vente, which is the final contract. The balance on the property price and the notaire’s fees (about 7 to 8% including transfer tax) have to be transferred to the Notaire’s account in time for completion. On the day of completion, you can attend the Notaire’s office with the vendor to sign the Acte de Vente. Alternatively you can arrange a Power of Attorney through your legal adviser. The property is officially yours when the Acte de Vente has been signed!
Click here to look at a selection of properties in France
or simply call Selection Property on +44 (0)20 8533 9988 or email contact@selectionproperty.com for more information.
Buying property in CROATIA
Click here to look at a selection of properties in Croatia or read the useful information below about buying property in Croatia. Please remember that, unlike other companies, we do not charge you for our service and the price of the property is the same whether you buy through Selection Property or directly from a developer or local agent.
The purchase process:
There are two ways to buy property in Croatia - as an individual or as a company:
a) Buying as an individual
Once you have decided which property to purchase, you sign a pre-sale contract containing details of the property, the buyer and the seller as well as the completion date of the purchase. A 10 % deposit is paid to secure the property. Completion takes place 3 to 6 weeks later. Both parties sign the official sale contract at a local Croatian notary public office. The notary will oversee the signature of the contract and send an application to the Croatian Ministry of Justice. The contract includes a clause that protects your rights and allows you to use the property immediately without waiting for the paperwork from the Ministry of Justice. You are then confirmed as the new owner in the Land Registry. We recommend that you use the services of an English speaking lawyer during the purchase process. This can be arranged whilst you are in Croatia. The fees for a notary plus a lawyer are about 1.5 % of the purchase price.
b) Setting up and buying through a Croatian company
This option is for purchasers looking to secure a mortgage, currently only available to registered companies. It also removes the requirement to apply for a permit from the Ministry of Justice. Once you have decided which property to purchase, an attorney will set up a limited liability company and liaise with the bank to process the loan application. The bank will open the necessary bank accounts and you then transfer your contribution to the property price into the company account. This is in turn transferred to the seller once the contract is signed. The loan amount is then transferred from the bank to the seller upon completion of the purchase.
Purchase, income and capital gains tax:
For an individual the stamp duty or Real Estate Transfer Tax is payable at a rate of five per cent of the property price within 30 days of entry in the Land Registry If the property is sold within 3 years of purchase, the capital gains tax levied is currently 35 %, however no capital gains tax is payable if you keep the property for 3 years or more.
Income tax is 25 % of the declared rental income profit, which applies to owners renting out as individuals rather than through a company. There is a double taxation agreement between Croatia and the UK as well as between Croatia and Ireland.
Financing a property purchase:
As well as paying cash, a foreign buyer can currently only finance a property purchase either as an individual through a leasing agreement or by setting up a Croatian registered company and borrowing through a mortgage. Setting up a company is fairly straightforward and can be financially interesting for purchasers of new build properties. Please contact us for more information.
Croatian property market:
Property prices in Croatia have increased between 12 and 28 per cent per annum over the last three years and prices now vary dramatically in each area. Dubrovnik is already an expensive place with certain properties reaching an unbelievable 6,000 euros per m². In other areas like Novigrad, a two bedroom apartment only 100 m from the marina, costs from 2,600 euros per m². A 10 minute walk further inland, a 60 m² two bedroom apartment in a small development with swimming pool is priced at just under 2,000 euros per m²
Buy-to-let market:
The rental potential depends on the location and type of property. Most holiday makers currently originate from continental Europe and prefer modern apartments close to the sea. Most coastal towns in Istria have been well preserved and are built around a main square featuring cafes and restaurants with terraces open all year round. Buy-to-let investors should therefore look for properties built to modern standards and preferably within walking distance of both town centre and sea as such properties can easily be rented out from late spring to early autumn
Before the events of the early 1990s, Croatia was already one of the most important destinations for tourism in Europe. It is fast climbing back up to this former status whilst imposing strict rules on property developments so as to preserve its cultural heritage and the appeal of its coastlines
As the country moves towards EU membership, expected improvements include increased financial packages, lower interest rates and speedier registration of ownership, making it easier and affordable for a broader base of foreign buyers to purchase in Croatia. Shrewd investors are buying now to enjoy maximum price increases.
The Istrian region: Istria borders Slovenia to the West and has a maritime border with Italy. It is known as “the new Tuscany” and is a beautiful region with great vineyards. It is also the most popular destination for foreign visitors to Croatia. Access is easy via Trieste or Venice airports from the UK. The flight time is just under two hours and from there, it is only a 40 minute drive to Istria via Slovenia. You can also fly directly to Pula from Dublin and London or to Rijeka from Oslo.
Why should investors consider buying property in Istria?
Istria has been catering for tourism since the 1960s and facilities such as cash points, doctor’s surgeries, shops and cafes with terraces are everywhere. The region is also a popular holiday destination for Italian, German, Slovenian, Austrian, French and Swiss holiday makers who can easily drive from their respective home country to Istria. This creates a big demand for self catering rental apartments in the region, especially during the summer months of June to September
Even though prices in the region have already doubled since 2000, they remain much lower than in the south of Croatia. Capital growth forecasts of double digit annual increases over the next five years are fuelled by recent improvements in the motorway network and the fact that up to 14 golf courses (out of 23 nationwide) are planned for construction in Istria alone
Together with improved facilities for yacht owners, this pushes prices up by attracting a wealthier type of visitors and investors, whilst remaining affordable
Click here to look at a selection of properties in Croatia
or simply call Selection Property on +44 (0)20 8533 9988 or email contact@selectionproperty.com for more information.
Buying Property in ITALY
Click here to look at a selection of properties in Italy or read the useful information below about buying property in Italy. Please remember that we do not charge you for our service and the price of the property is the same whether you buy through Selection Property or directly from a developer or local agent.
Non-residents can purchase a property in Italy without restrictions. Below is a summary of what happens once you have decided to purchase your chosen property. This is for your information only. We strongly recommend that you use an independent legal adviser who is fully qualified in Italian law. Please contact us for details.
Proposta irrevocabile d'acquisto: this is a binding purchase agreement signed by you and the vendor once you have decided to purchase a property and agreed on the price. The document gives a deadline for signing the Compromesso (see below) and you have to pay a deposit of 10% of the agreed price. Note: if you change your mind you will lose your deposit. If the sale is cancelled through no fault of your own, your deposit is refunded.
Compromesso: it is the preliminary contract and commits both parties to the sale. It establishes the terms of the final contract (Rogito) and details price, completion date, property information and guarantees from the vendor. At this stage you pay the deposit (Caparra), usually 1/3 of the price. Note: If you withdraw from the sale after signing the Compromesso, you lose your deposit. However, if the vendor withdraws, he pays you double your deposit.
Rogito: a few months later, ownership of the property is transferred from the vendor to the buyer. The Rogito is a document drawn up by the Notary, who represents both parties. You can sign the Rogito in person or through a Power of Attorney. At this stage, the balance of the property price has to be transferred together with the purchase tax and notary fees.
• purchase tax: about 3% (or 4% VAT for a new build) for a permanent residence or about 10% for a second home.
• notary fees: about 2 to 5% of the value of the property.
Buying property in EGYPT
Click here to look at a selection of properties in Egypt or read the useful information below about buying property in Egypt. Please remember that we do not charge you for our service and the price of the property is the same whether you buy through Selection Property or directly from a developer or local agent.
It is advisable that you hire your own lawyer because of the complex registration process and the fact that only legal documents in Arabic are recognized by the courts. Most developers can recommend a local lawyer to assist you in the buying process or we will be happy to recommend a UK based lawyer.
You need to obtain a residence visa when purchasing property however this is simply a formality for your lawyer to arrange, even if you plan to spend only little time in Egypt. It is advisable to give your legal adviser ‘Power of Attorney' so that they can sign legal documents on your behalf and save you the need to make several trips to Egypt during the purchase process.
When buying an off-plan property, you sign a reservation agreement and pay a deposit (usually £2,000) which may or may not be refundable depending on the developer. The main document for the purchase is a sale and purchase contract drawn up by the developer. This is a legally-binding contract with key information including details of the property, the total amount payable, the deposit, penalty clauses, etc...
Within a month of signing the contract, you make a payment of about 25 to 50% of the purchase price. Again this varies according to the development. The balance of the property price is often payable in stages until delivery of the property. Once the property is ready, your lawyer will arrange for ownership of the property to be transferred in your name. There are 2 options to register the purchase:
- Your lawyer can register you as the owner of the property at the Land Registration Office. The downside with this is that foreign buyers are allowed to buy maximum 2 properties and with maximum 4,000 m2 of habitable space in total. They are also not allowed to sell within 5 years of buying. - Your lawyer can get around these restrictions by registering your ownership with a notary. This costs around EGP2000 (£180) and confirms your ownership of the property but it does not add your name to the Land Registry. This means that you can buy and sell as many properties as you like and at any time.
There is a different legal status in Sharm el Sheikh than in other areas of Egypt since a decree from 2005 stating that foreign purchasers in Sharm el Sheikh cannot have the right to be "landlords" but that they have the "freehold" right for a period of 99 years, which is renewed when the property is sold to the next buyer. It is known as "usufruct" or “perpetual leasehold”. You can buy freehold in the usual sense in other areas of Egypt.
Purchase and legal costs in Egypt work out at around 3% of the property price with the Egyptian equivalent of stamp duty currently about EGP2000 (£ 180) depending on the location. There is also a small inspection and measurement fee about £50.
There is currently no Capital Gains Tax or property tax for foreign purchasers imposed on the sale of land and buildings outside the boundaries of an Egyptian city.
Click here to look at a selection of properties in Egypt
or simply call Selection Property on +44 (0)20 8533 9988 or email contact@selectionproperty.com for more information.
Buying property in BERLIN
Click here to look at a selection of properties in Berlin or read the useful information below about buying property in Berlin. Please remember that we do not charge you for our service and the price of the property is the same whether you buy through Selection Property or directly from a developer or local agent.
Purchase Process in Berlin
When you have decided to purchase your chosen property, you pay a reservation deposit of 2,000 euros to 3,000 euros depending on the property. We advised that you use the services of a bilingual solicitor qualified in German Law to look after your interests and all legal matters for you. We can help you find a solicitor. It is usual for the buyer to give ‘Power of Attorney’ to their solicitor so that the latter can complete the purchase process and sign the final contract at the notary’s office without the buyer having to travel back to Berlin. Should you decide to go to the notary’s office to sign the contract in person, please note that proceedings are of course in German and a translator would therefore be needed so that the notary is satisfied that you understand the proceedings. Once the purchase has been completed, the notary will ensure the change of ownership is entered in the land registry usually within 3 to 6 months.
Purchase costs
We recommend that you budget for an extra 8 to 9% for purchase costs, including 4.5% for the stamp duty and the rest for notary, taxes and other legal costs.
German mortgages
German mortgages are now available to non-residents for up 60% or 70% of the purchase price and for a minimum amount borrowed of 50,000 €. A mortgage fee of up to 1% may be charged by the bank. Lending terms and criteria vary however please note that banks will require proof of income and copies of bank statements to process your mortgage application. We can help you obtain a German mortgage once you have decided which property you wish to purchase.
Please contact Selection Property on + 44 (0)20 8533 9988 for information on purchasing in Berlin or email contact@selectionproperty.com for details of properties currently available.
Alternatively, Click here to look at a selection of properties in Berlin
Buying property in TURKEY
Click here to look at a selection of properties in Turkey or read the useful information below about Turkey. Please remember that we do not charge you for our service and the price of the property is the same whether you buy through Selection Property or directly from a developer or local agent.
An increasing number of expatriates are moving to Turkey and making it their home either to retire, to work or to start a new life.
Turkey has changed dramatically in the last five years and the process of modernization happened very quickly in some areas. In 2000, only around 300 British citizens acquired property in Turkey. In 2007, this figure is estimated to exceed 50,000!
Countries from which Turkey has attracted new residents are Germany, the Netherlands, France, Belgium and the UK.
Because of its unique geographical location, rich and diverse history and its reputation as a shelter for different cultures and civilizations, Turkey is an ideal choice for expatriates and their families.
Turkey is also an emerging property market and one of the world’s fastest-growing economies. It is attracting investors from overseas who hope to achieve higher rewards than in a mature market and who can see the potential high rental returns and capital growth.
Turkey is the largest economy in Eastern Europe, the Balkans, the Black Sea basin and the Middle East. It is the European Union’s sixth biggest trading partner and the world’s 7th largest emerging economy. Inflation has been going down for many years and is now at its lowest for the last 37 years. After Turkey’s acceptance as a candidate member of the European Union in 1999, the Turkish government has sought to allign national laws and policies with the rest of Europe in anticipation of full EU membership.
Turkey has signed all International Law Documentation and is attached to the International Court System (including arbitration). And now Turkey is undergoing rapid transformation in preparation for its EU membership. Foreign investments are protected by European Union legislation, international arbitration and Turkish government legislation.
For investors looking at overseas properties as an opportunity to make capital gains, it is interesting to note that conservative estimates are of a minimum of 10 to 15% increase each year, yet current prices are still the most competitive in the Mediterranean or Aegean regions.
The Ministry of Culture and Tourism has undertaken to build 100 golf courses in Turkey whilst airports, marinas and ports are undergoing modernization and increased capacity.
Of course, purchasing a property overseas does not have to be purely about making a profit. Turkey, as well as being an excellent holiday destination, gives you the chance to discover different cultures, some superb historical artifacts, ancient ruins and areas of great natural beauty. You can enjoy wonderful weather, meet new friends and explore new horizons. Holiday areas offer excellent facilities that provide a wide variety of activities and excursions and also offer a lively varied nightlife. Whatever you motivation, you are likely to find it in Turkey!
Click here to look at a selection of properties in Turkey or simply call Selection Property on +44 (0)20 8533 9988 or email contact@selectionproperty.com for details.
Foreign Currency & Mortgages
Foreign mortgages:
. Lending regulations and criteria from overseas banks are different than the ones at home. In countries such as France and Germany, your outgoings are taken into account to work out a debt ratio. If the debt ratio is considered too high, your mortgage application will be refused and you will not be able to purchase the property. To avoid disappointment, we can check your borrowing capacity beforehand. This will determine what properties you can afford to purchase and even more importantly what properties you should not waste time and money considering
. In Croatia, you cannot obtain a mortgage as an individual, however you can obtain a mortgage through a company that you set up for that purpose. The process is straightforward and is especially interesting if you are purchasing one or several new build properties. In this case you indeed receive a refund for the VAT amount which is included in the property price. Please contact us for more information
Buying property in a foreign currency:
. Whether you are purchasing in France, Croatia, Greece, Germany, Turkey, Egypt, Italy or Spain, the price of the property has to be paid in euro.
. Fluctuating exchange rates between the euro and your home currency can make a big difference to the price you end up paying for the property, especially with new build properties where payments are made in stages over a period of up to 2 years
. We can cancel out this risk by helping you get a fixed exchange rate for future transactions spread over a period of between 6 months and 2 years. We can also help ensure that you benefit from excellent exchange rates, no commission, no transfer charges, no bank receipt charges and simple direct debit transactions with your UK bank.
For more information on how you can obtain the best rates and no charges on overseas transfers, please call our currency partners HIFX on 0845 370 5228 or email currency services.
Clients testimonials
H. Emmett, Nottingham "Thank you for all the help and support that you have provided. Service and support, recommendations for legal advice and mortgage advice have all been excellent!!!"
M. O'Connell, Dublin "We are very happy with our apartment and are looking forward to spending some time there soon. We also have friends who may be interested and we will be happy to refer them to Selection Property."
S. Collier, Lancashire "Once again thank you for your prompt attention to the matter. I would not hesitate in recommending your company should the opportunity arise."
O. Crilly, Belfast “I must say that the service you provided was second to none. Everything was made clear throughout the whole process and while it is a fairly complex process we could not have completed without your help. Regarding recommending you to other people, we will have no hesitation and indeed we have passed your details onto several people already. Many thanks for you help.”
K. Hayes, Cork “Firstly I would like to say a sincere thank you. I would highly recommend your company to anyone interested in purchasing foreign property. Hopefully we will be doing business again soon.”
R. Green, Glasgow “We have been involved in purchasing property through your company Selection Property... the customer service has been second to none. The property we are purchasing is extremely modest but this made no difference to the quality of your service… We wanted to point this out to you. As a consequence, as we have a friend who in due course will be looking for higher profile property, we have recommended Selection Property to him.”
P. Lee Smith, Berkshire “We are very pleased with the property. It all went really well and everything happened when it was supposed to and we are quite happy with it. Thanks to you all.”
R. Hero, London “May I add that we were impressed by all your contacts in Istria. We were looked after excellently by all the people we met… they were so polite, friendly and efficient. It was a pleasure doing business with them.”
K. Simcock, Leeds “I have passed your details to a few people who are considering properties abroad, as we have found the process relatively straight forward.”
E. Brown, Private Selection vendor "The sale went through today and we should receive the payment tomorrow so thanks a million again for all your hard work!"
S. Phillips, London "We were in Croatia at the weekend and took some pictures of the residence which I thought you may be interested in. The builders are progressing well, with the shell of the building up and work now starting on the swimming pool. Anyway, it is looking good!"
H. Thoresby, Kingston upon Hull “I will not hesitate in
recommending Selection Property to others in future.”
Click here to see some press coverage about us
or call +44 (0)20 8533 9988, email contact@selectionproperty.com or visit our London office at Coppergate House, 16 Brune Street, London E1 7NJ.
Selection Property 2005, All rights reserved.
We are Founder Members of the Association of International Property Professionals (AIPP).
We have been subject to the membership criteria and have signed up to follow the Code of Conduct established to help you, the consumer, in buying property overseas with confidence.