Buying abroad is easier than most people expect, and more detailed than they hope. These are the steps I walk every client through.
1. Choose the place before the property. Spend real time there, ideally in the season you would use it. How a town feels in February is not how it feels in August.
2. Build your local team. A licensed local agent, an independent lawyer or notary, and a lender if you are financing. I introduce you to people I trust.
3. Understand the local rules. In Mexico, foreigners buying near the coast or border usually hold title through a bank trust called a fideicomiso. In Costa Rica, foreigners can own titled property outright, but land within 200 metres of the high tide line is usually held as a concession. In Portugal you will need a tax number (NIF), and in Italy a codice fiscale, before you can buy. In France, every purchase is handled by a notaire.
4. Plan the Canadian side. Canadians who own foreign property costing more than $100,000 generally report it each year on form T1135, and rental income earned abroad is taxable in Canada. Speak to your accountant before you buy.
5. Plan how you will use it. Personal use, family use, rental income, or all three. Each choice changes the right property and how it should be owned.