The Ultimate Checklist – 20 Essential Questions to Ask Before Buying Property Abroad

Introduction

Irish families, retirees and savvy investors are increasingly looking beyond the Emerald Isle for a second home, a retirement haven or a rental asset. In 2023 Irish capital flows into property topped €25.5 billion, underscoring a strong appetite for overseas real estate despite higher borrowing costs at home. But buying abroad is far more complex than a domestic transaction. A missed detail can turn a dream purchase into a costly headache.

This article gives you a step‑by‑step, 20‑question checklist that covers everything from purpose and financing to legal, tax and exit strategy. Use it as a worksheet before you sign any contract, and you’ll protect both your money and your peace of mind.

1. Why Are You Buying?

  1. What is the primary purpose?

    • Holiday home, permanent residence, retirement retreat, buy‑to‑let, or pure capital‑gain investment?
    • Your purpose dictates location, size, financing and tax treatment.

  2. How long do you intend to stay?

    • Short‑term (≤ 5 years) vs long‑term (≥ 10 years) ownership changes mortgage eligibility, rental‑yield expectations and exit‑tax planning.

2. Where Should You Buy?

  1. Which country or region matches your lifestyle and budget?

    • Spain, Portugal, France, Italy, Cyprus, the USA and the Caribbean are popular with Irish buyers. Compare cost per square metre, climate, healthcare and community of Irish expats.

  2. Is the location politically and economically stable?

    • Look at recent GDP growth, unemployment, foreign‑exchange volatility and any travel‑restriction history.

  3. What are the local market trends?

    • Check recent price growth, supply‑demand balance and upcoming infrastructure projects that could lift values.

3. What Is Your True Budget?

  1. What is the all‑in purchase price?

    • Include the listed price plus stamp duty, registration fees, notary costs, solicitor fees and any agent commissions (typically 1‑5 % of price).

  2. What ongoing costs will you face?

    • Property tax, community/condominium fees, insurance, utilities, maintenance, and potential homeowner‑association levies.

  3. How will exchange‑rate fluctuations affect your budget?

    • A 5 % swing in EUR ↔ USD can add or subtract €10 k on a €200 k purchase. Consider forward contracts or a specialist FX account to lock rates.

4. How Will You Finance the Purchase?

  1. Can you obtain a mortgage locally, or will you rely on an Irish lender?

    • Local banks may require larger deposits (30‑40 %) and higher interest rates. Irish banks often limit foreign‑property loans to 50‑60 % LTV.

  2. What is the total cost of borrowing?

    • Compare nominal rates, APR, arrangement fees, early‑repayment penalties and any currency‑conversion costs.

  3. Do you have a contingency fund?

    • Aim for at least 5‑10 % of the purchase price for unexpected repairs, legal disputes or a dip in rental income.

5. Legal and Title Checks

  1. Is the seller the rightful owner and is the title clear?

    • Obtain a full title search from the local land registry and confirm there are no liens, easements or unresolved disputes.

  2. What type of ownership applies?

    • Freehold vs leasehold, communal ownership, or a share‑in‑building scheme. Lease lengths under 80 years can hinder resale and mortgageability.

  3. Are there restrictions on foreign buyers?

    • Some countries (e.g., Croatia, certain coastal zones in Italy) limit non‑EU ownership or require a local partner.

6. Property Condition and Survey

  1. Has a professional survey been carried out?

    • A structural survey, pest inspection and, for older homes, asbestos checks are essential. In Spain and Portugal, a “technical inspection” (informe técnico) is often mandatory for new builds.

  2. What are the renovation or refurbishment costs?

    • Obtain detailed quotes before committing. Renovation budgets can easily double the original estimate in historic properties.

7. Rental and Management (If You Plan to Let)

  1. Is there a viable short‑term or long‑term rental market?

    • Analyse occupancy rates, seasonal demand and average daily rates. In tourist hotspots, summer yields can be high but winter occupancy may drop to < 30 %.

  2. Will you use a local property manager?

    • Check fees (typically 10‑15 % of rent) and services offered – tenant screening, maintenance, tax filing and emergency handling.

8. Tax Implications

  1. What are the local property taxes and capital‑gains rules?

    • Some jurisdictions levy an annual property tax on non‑resident owners (e.g., Spain’s “Impuesto sobre Bienes Inmuebles” – IBI). Capital‑gains tax rates differ for residents vs non‑residents.

  2. How will the purchase affect your Irish tax position?

    • Rental income is taxable in Ireland, but double‑taxation treaties (e.g., Ireland‑Spain, Ireland‑Portugal) usually allow foreign tax credits. Consult a cross‑border tax adviser to avoid unexpected liabilities.

9. Exit Strategy

  1. When and how do you plan to sell?

    • Consider market liquidity, expected resale value, and any exit‑taxes (e.g., Spain’s 19 % tax on non‑resident capital gains).

  2. Will you be able to transfer the property back to an Irish buyer?

    • Some markets favour local investors, which can affect price and time on market.

10. Practicalities and Lifestyle

  1. How easy is it to travel to the property?

    • Direct flight connections, visa requirements, and seasonal weather impact how often you can visit.

  2. Is the local healthcare system suitable for you?

    • Check whether you need private health insurance, especially for retirement homes.

  3. What community and language support exists?

    • A strong Irish expat network can ease integration and provide trusted service recommendations.

11. Risk Management

  1. Do you have adequate insurance?

    • Buildings, contents, flood, earthquake (if relevant) and landlord insurance for rental properties.

  2. What is the political or environmental risk?

    • Earthquake zones, flood plains, or regions prone to regulatory changes (e.g., short‑term rental bans).

Putting It All Together – A Sample Checklist Worksheet

# Question Your Answer / Notes
1 Primary purpose?
2 Intended ownership length?
3 Preferred country/region?
… …
27 Environmental risk assessment?

Print this table, fill it out for each property you consider, and compare the results side‑by‑side. The property that scores highest across purpose, finance, legal safety and lifestyle is likely your best bet.

Conclusion

Buying a home abroad can be a rewarding way to diversify your assets, enjoy a new culture, and create a legacy for future generations. Yet the process is riddled with hidden costs, legal nuances and tax traps that many Irish buyers overlook. By systematically working through these 20 essential questions, you’ll minimise surprises, protect your investment and ensure the purchase aligns with your long‑term goals.

Take the time to engage a local solicitor, a cross‑border tax adviser, and, where currency risk is significant, a specialist FX provider (e.g., a property‑FX account that lets you lock rates for up to 12 months). With thorough due diligence, your overseas property can become a source of pride, profit and priceless holiday memories for years to come.