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 certain cryptocurrencies to use this to pay for the property. The procedure agreed with the cryptoexchange that MHA works with, involves the investor sending his cryptocurrency directly to the cryptoexchange based on a real-time invoice sent by MHA to the investor.

The cryptoexchange converts the cryptocurrency into US$ upon receipt and the amount is then sent in Euros directly to the lawyers acting for the investor on the sale.

This process is designed to minimise costs for the investor and to streamline the process with the cryptocurrency / sale proceeds only being handled by the cryptoexchange, which are then sent to the investor’s client account with the lawyers handling the sale.

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