Instruct local independent lawyers to carry out a full due diligence on the title to the land. Where plots are being bought from a developer for new-build apartments or villas, what guarantees are in place that the development will proceed?
If you are intending to rent out the property to help cover costs or loan interest, make sure there are no local restrictions which would prevent your from doing so.
Be alert to succession rules when buying abroad. The law of the jurisdiction where the property is situated will over-rule and govern succession to the property on death. However, it may be possible to use a company or a trust s a holding structure to prevent any forced heirship rules from applying.
Where you intend to gift the property at a later date to your children, be alert to all the taxes that will apply. If you are still UK resident at that point, UK capital gains tax will apply on any gain in the property. In addition, there could be local capital taxes or transfer taxes that apply.
UK inheritance tax will apply to your worldwide estate if you are domiciled in the UK. On top of this, local death taxes could also apply.
It is essential to take advice – both in the UK from a lawyer with international experience and also locally – to ensure title to the property is purchased in the most effective manner for succession purposes and to mitigate future taxes. Taking early structuring advice is critical.