How to finance the purchase of real estate abroad

Payment by the investor with his own funds

Where an investor is making the purchase with their own funds (whether from existing investments, equity release or a tax-free lump sum from a pension), the payment of the purchase price is made in accordance with the different steps outlined in the country guides on the MHA site.

MHA works closely with the lawyers, notaries and other professionals whose services may be required for the particular investment, and based on the information MHA receives from the investor, MHA will prepare a budget for the investor which will specify each stage at which funds will need to be transferred to the lawyers.

Bank finance

MHA has a wide range of contacts with banks and mortgage brokers, who are able to arrange mortgage finance for our investors.

MHA also works with a number of specialist tax advisers who can advise on the optimum way of structuring an investment, taking into account the personal circumstances of each investor. Having a mortgage in place can be particularly interesting where the investor would be subject to wealth tax if he made the purchase without any loan structure in place, since wealth tax is usually calculated on the equity in the property.

Payment with Cryptocurrency

MHA has at the request of a number of investors, put in place a legal structure enabling a holder of crypto currencies to use these to pay for the property they are looking to purchase.

The Payment Services Provider (“PSP”) that MHA works with has its head office in Singapore, where it is regulated.

The investor will establish a personal account directly with the PSP.

When the property purchase is ready to be completed, the investor will send his cryptocurrency directly to his own wallet with the PSP.

When the PSP receives the crypto, this is then sold and converted into the currency required to settle the property purchase, whether this is US$, Euros or any other currency.  The proceeds of the sale will be credited to the investor’s account opened with the PSP.

The PSP will in accordance with the investor’s instructions, transfer the money from the sale to the lawyers handling the purchase of the property in the country in question.

This process is designed to streamline the purchase of the property for the investor and to minimise the costs associated with the transaction, with the crypto / sale proceeds only being handled by the PSP and the nominated lawyers handling the purchase.

For further information about the security and the procedures involved, please contact us.