US Edition
A shoebox in Mayfair, a castle in Scotland or an island in the Pacific – browsing property websites to see what dream home you could buy is the ultimate way to while away the hours. Who hasn't thought about cashing in on their property in Britain and finding a dream home in a cheaper, less crowded part of the world?
Now you can see what your budget could afford you, using our new property daydreaming tool.
Telegraph Money asked international estate agents to scour the globe to give you an idea of the types of properties you can buy in 10 countries around the world for £500,000, £1m or £5m+.
We have chosen some of the most popular destinations for British émigrés, and then divided the properties by price and location – city, coast and countryside. The tool should give you a sense of what is out there. Perhaps it will help you to put a price point on your dream getaway house and find out what is available in your budget. Maybe your beachfront retirement plans aren’t such a pipedream after all.
To put together the tool, we have used properties that were listed for sale at the time of writing, but this does limit us a little. It is only a snapshot of what is on offer, and some locations didn’t have any available properties that fit our criteria.
It is also not intended to be representative of a whole country. For example, a housing market as big and varied as the US cannot reasonably be condensed into nine properties. Instead, think of the tool as a beguiling taster of what is out there, or a starting point for further research. It will give you an indication of what you could get for your money.
Let the dreaming begin...
France has long been an attractive destination for British holidaymakers and retirees, with locations in the south and west being the most popular with retirees. In some areas such as Eymet in Dordogne, Britons account for 10pc of the local population.
There are 600,000 Britons who own property in France, according to estate agent Knight Frank, and recent changes now mean it is easier for them to stay in the country. Passed last year, the immigration bill grants long-stay visas to Britons who own second properties in France.
So why buy a house in France? For a start, property is usually much cheaper than in the UK, particularly in rural areas, so you can get more value for money. The country is also a favourite for a reason. Reliably good food and wine are usually close to the top of reasons for visiting and moving to France.
There are also plenty of locations to choose from. Paris and other major cities including Marseille and Lyon offer a cosmopolitan lifestyle with all the European café culture perks. And for those looking for a slower pace of life, the countryside offers picturesque villages with regular markets. There is also skiing, national parks and thousands of miles of coastline.
Germany is a popular choice for working British expats. According to official figures, there are around 168,000 British citizens living in the country, the majority of whom have a professional qualification. The country has a lower cost of living than the UK, and a fall in property prices over the past couple of years has made property more affordable (although the bureaucratic approach may slow things down).
But Germany has more to offer than attractive data points. Its cities are rich with culture – Berlin has a vibrant music scene while Cologne’s famous cathedral, which took seven centuries to build, is the country’s most visited attraction.
And if you are in need of some time away from the bright lights, there is plenty to explore. The Black Forest is a hiker’s paradise and visited by 2.2 million overseas tourists a year. And to the north, the Baltic Sea beaches offer miles of coastline, although there may not be many opportunities for sunbathing.
Italy is hugely popular with Britons travelling to enjoy its scenery and cuisine. Some have made it more permanent – there are more than 65,000 British expats in Italy, with many settling in major cities such as Milan and Rome for work.
Around 27pc of British expats are retired, and it is not hard to see why. As well as the Mediterranean lifestyle, the financial incentives are great. In 2017, Italy introduced a Swiss-style “forfeit” tax regime. This means that British pensioners can pay a fixed amount of tax on all foreign income, no matter its size. However, you do need to be an Italian resident to buy property in the country.
British expats are lured by a warmer climate and a more relaxed pace of life, particularly away from the cities. In the winter, the Alps offer world class skiing resorts and in the summer, there is hiking and climbing. Tuscany promises rolling hills and rows of vineyards. However, property prices in the sought after area are higher. If you are looking for somewhere a little cheaper, Sicily offers more affordable properties combined with a beautiful coastline and rich history.
With almost 19,000 British citizens settled in the country, Portugal is a less popular choice for expats than Spain. However, those who make the move benefit from a warm climate, beautiful beaches and vibrant cities.
The cost of living is lower than in the UK and last year, Portugal was ranked the seventh safest country in the world. It also has an accessible healthcare system with affordable health insurance available for all ages.
Portugal offers a very popular golden visa, also known as a “residency by investment” scheme. Introduced in 2012, the scheme has had over 12,000 applicants. However, changes made last year mean that real estate investment or real estate fund investment no longer qualify for the visa, so it is worth looking at whether you would still be eligible.
The country has also ended its “non-habitual resident” tax scheme, which allowed people who become residents in the country to pay just 10pc tax on pensions from a foreign source.
Spain is the most popular European country for British expats, with around 300,000 choosing to settle there, roughly a third of whom are retirees. Property is much cheaper in Spain compared to the UK, and areas such as the Costa del Sol are known as an attractive location for retirees with a well established British community.
A popular area is Marbella, which is home to around 45,000 foreign residents, including many Britons. You can expect to pay around €400,000 (£342,000) for a good two-bedroom apartment, says Sean Cannon, of agent Panorama Properties.
More expensive is Barcelona. Gaudi’s city boasts famous architecture and increasingly traffic-free areas thanks to the Superilla initiative that aims to create networks of green spaces. However, the city comes at a cost. Savills currently has a two-bedroom apartment listed for €495,000 (£426,000). Further afield on Mallorca, the agency Coastal Properties is currently selling a two-bedroom apartment for €220,000 (£189,459).
There is no shortage of locations to choose from for Britons looking to move to the US. The range of landscapes and cities, not only to live in but to explore, make it an exciting prospect for expats. The lack of a language barrier makes it an accessible choice, but movers may face higher costs such as health and social care.
Taxes are also another complicated area. The US and the UK have tax treaties that ensure UK citizens living in America only pay national insurance (social security) tax in one country. However, there is a lot of bureaucracy to deal with, such as having to make declarations of assets outside of the US. It is usually worthwhile to get an adviser if you are thinking of making a move across the pond.
Once you begin thinking about moving, it is then a question of where you move to. East or West coast, rural or city, mountains or plains? Property prices vary wildly. A two-bedroom, one bathroom apartment in Brooklyn, New York costs an average of $315,000 (£249,190).
More than 60,000 people who were born in Britain live in Canada, making up around 2pc of the total population. With stunning scenery from the mountains to the coasts, as well as a strong jobs market, the country has plenty to offer expats, as well as being the thirteenth happiest country on earth. It is also often referred to as the world’s friendliest country, with citizens known for their politeness.
It has also caught the attention of Hollywood A-Listers. Muskoka, just north of Toronto, has private islands for sale and hosts celebrities such as Tom Hanks, Goldie Hawn and Steven Spielberg, who have bought properties in the area. Crown Island in Muskoka, covering almost 18 acres, is currently on sale for $2,307,983 (£1,830,000).
However, there are other practicalities to think about. Canada has a high cost of living and property prices that may hold some back. Similarly to the UK, the country offers universal healthcare to citizens and permanent residents.
Living down under has long appealed to Britons looking to escape the long grey winters at home. At the end of 2021, more than 1 million people born in Britain lived in Australia. And while the government has ended its retirement visa scheme, there are still options for those looking to enjoy their non-working years in the sun.
And for retirees, it helps that there is a designated scheme to transfer your pension. However, it is worth noting that before you buy property, all international investors and temporary residents have to apply and be approved by the Foreign Investment Review Board. The application cost is $14,100 AUD (£7,373) for properties worth $75,001 AUD (£39,200) to $1m AUD (£874,900), with higher fees payable the more expensive the home is.
If you make the jump, £700,000 will buy you a five-bedroom property in Queensland or for £1m, you can get a three-bedroom home in North Sydney.
The Caribbean is often considered a dream location to live, with white sands and balmy temperatures. Barbados is home to more than 27,000 Britons, and with no restrictions on foreign ownership, it is a relatively simple place to buy property.
With a British passport, you can stay without a visa for six months. However, those planning to retire must apply for a Special Entry Permit. You need to demonstrate that you have sufficient resources to live in the country without needing to work. You also need health insurance and property worth over $150,000 (£118,000).
For those who can stretch further, £500,000 buys you a three-bedroom property on the cliffs overlooking the white sands of Bottom Bay with easy access to the beach. At the top of our price range for £5.5m, you can buy a 10,000 sq ft villa with its own pool and gym.
As well as the price tag, paradise is far away. The average flight from the UK to Barbados is over nine hours, so it could be tricky visiting home. However, when you live in your villa on the beach, why would you want to?
With its 0pc income tax, it isn’t hard to see why the United Arab Emirates (UAE) is a popular relocation destination for western expats. Those looking to retire in the UAE can apply for a five-year retirement visa, open to anyone over the age of 55.
You only need a valid passport, not a visa, to buy property, making it accessible for international buyers, although property prices aren’t cheap. House prices rose 5pc in Dubai in the third quarter of last year, according to Knight Frank, fuelled by wealthy buyers from overseas looking for luxury second homes. Apartments in the south of Dubai have risen in price by 73pc over the past 12 months. But that doesn’t mean all properties are unaffordable. For £584,000, you can buy a three-bedroom townhouse with a shared swimming pool, gym and sports court just a stone’s throw from the beach.