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Guide To Buying A Holiday Home Abroad

6 Oct 2025 1 min read
Owning a holiday home in your favourite destination can be rewarding. However, it’s also a major commitment. There’s much to consider before you buy, including local property laws, ongoing costs, and how to protect your investment. This guide highlights key steps, popular locations, and important checks to help you make an informed decision.

Buying A Holiday Home Abroad FAQs

Please note that these frequently asked questions are not a substitute for the policy wording. For full terms and conditions please see the policy documentation.

  • Is Buying A Holiday Home A Good Investment?

    It can be. A well-located property could generate strong rental income, and you’ll also have the bonus of using it for your own holidays, saving on accommodation elsewhere. There’s also the potential for the property to increase in value over time. However, recent tax changes have reduced some of the advantages of running a holiday let, and you’ll need to factor in ongoing costs like maintenance, insurance, and management fees before deciding if it’s right for you.

  • Do You Have To Pay Tax On A Second Home Abroad?

    Yes. Every country has its own tax rules, and the amount you’ll pay depends on local laws. This can include purchase taxes, annual property taxes, and possibly income tax if you rent the property out. A local tax adviser can help you understand your obligations.

  • Can I Buy A Holiday Home To Live In Permanently?

    You may be able to, but you’ll need to check if you require a visa, residence permit, or citizenship to stay long-term in your chosen country. You might also need to update your insurance to reflect that it’s now your permanent home.

  • Drawbacks Of Buying A Property Abroad

    While buying a holiday home abroad brings plenty of benefits, there are also some downsides to think about before committing:

    • Limiting yourself to the same location: As much as you love your chosen spot, you may find it less exciting after visiting the same attractions, restaurants, and beaches multiple times.
    • Initial and ongoing expenses: The purchase price is only the beginning. You’ll also need to budget for taxes, bills, maintenance, and repairs, both when you’re there and not.
    • Language barriers: If you don’t speak the local language, arranging maintenance, repairs, or dealing with official matters can be more difficult.
    • Difficulty navigating local laws: Every country has its own rules for property ownership, rental, and taxation, which can be tricky to understand without expert help.
    • Natural disasters: Some regions are at higher risk of events like hurricanes, floods, earthquakes, or landslides. These can cause significant damage and increase insurance costs.
    • 90-day rule: In most EU countries, UK citizens can stay for up to 90 days in any 180-day period, so there are limits on how often you visit and long you stay.

*Correct as of Sept 2025

The sole purpose of this article is to provide guidance on the issues covered. This article is not intended to give legal advice, and, accordingly, it should not be relied upon. It should not be regarded as a comprehensive statement of the law and/or market practice in this area. We make no claims as to the completeness or accuracy of the information contained herein or in the links which were live at the date of publication. You should not act upon (or should refrain from acting upon) information in this publication without first seeking specific legal and/or specialist advice. Arthur J. Gallagher Insurance Brokers Limited trading as Intasure accepts no liability for any inaccuracy, omission or mistake in this publication, nor will we be responsible for any loss which may be suffered as a result of any person relying on the information contained herein.

 

FP1486-2025. Exp. 25.09.2026