International real estate investment is growing. Lower property prices relative to UK markets, rental income potential, lifestyle appeal, and portfolio diversification are driving UK buyers towards Spain, Portugal, France, Italy, Turkey, the UAE, and beyond.
Why the currency decision matters as much as the property decision
When you buy property abroad, you lock in a purchase price on day one. You do not pay on day one. Most purchases take 3–6 months from offer to completion. In that time, the exchange rate moves.
On a €400,000 property, a 5% adverse move in GBP/EUR increases your sterling cost by £17,000+. Managing this risk with a forward contract — fixing your rate at offer acceptance — is the difference between the budget you planned and the budget you actually spend.
The most popular international property markets for UK buyers in 2026
Spain
Currency: EUR | Price range: €150,000–€2,000,000+
Most popular destination for UK buyers. Costa del Sol, Costa Blanca, Balearic Islands. Purchase timelines 3–5 months. GBP/EUR has ranged from 1.02 to 1.43 over a 5-year window. Forward contract standard for purchases above £100,000.
Tax: IVA 10% (new builds). ITP 6–10% (resales). Non-resident income tax on rental.
Portugal
Currency: EUR | Price range: €200,000–€2,000,000+
Algarve and Lisbon remain strong. Golden Visa programme active. Porto and Silver Coast gaining traction. CPCV + escritura process. Source-of-funds documentation important for Golden Visa.
Tax: IMT on sliding scale. IMI 0.3–0.8% annually.
France
Currency: EUR | Price range: €100,000–€3,000,000+
Dordogne, Brittany (accessible), Provence, Cote d'Azur (premium), Alps (ski). Notaire system. 10–12 week timeline from offer. Forward contract recommended for significant purchases.
Tax: French CGT 19% for non-residents (tapering from year 5). Annual taxe fonciere applies.
Italy
Currency: EUR | Price range: €80,000–€2,000,000+
Tuscany, Umbria, Amalfi Coast. Growing UK buyer interest. Compromesso + rogito. Renovation properties popular. Renovation costs carry same GBP/EUR rate risk as purchase.
Tax: Registro tax 2% (primary) / 9% (second homes). IMU applies to second homes.
Turkey
Currency: TRY | Price range: Variable
Antalya, Bodrum, Fethiye, Istanbul. Citizenship by Investment above $400,000. TRY highly volatile — 20–30% annual movements possible. Properties typically priced in USD/EUR then converted. Forward contracts particularly important.
Tax: Title deed transfer 4%. Annual property tax 0.1–0.3%.
UAE / Dubai
Currency: AED (pegged to USD) | Price range: AED 800,000–AED 20,000,000+
Zero income tax. High rental yields. Off-plan dominant — payment plans tied to construction milestones over 2–3 years. GBP/AED risk is effectively GBP/USD risk. Forward contracts can cover construction milestone payments.
Tax: 4% DLD transfer fee. Agent fees typically 2%.
Thailand
Currency: THB | Price range: THB 3,000,000–THB 30,000,000+
Phuket, Koh Samui, Chiang Mai. Condominiums (up to 49% foreign ownership) and leasehold structures. Foreign Exchange Transaction forms required for amounts above ~£40,000. IFA Markets FX handles GBP to THB direct.
Tax: No CGT for individuals. Transfer fee + specific business tax or stamp duty applies.
How to handle the currency on an international property purchase
- Engage a specialist currency broker before making an offer. Get a live rate and understand the forward contract cost.
- At offer acceptance, lock in a forward contract for the main balance. Pay the small deposit. Rate is now fixed for up to 12 months.
- Use spot rates for smaller early-stage payments (reservation, legal fees).
- Keep your specialist updated on each payment milestone.
- Complete. Your forward contract settles at the rate you fixed at offer.
IFA Markets FX: specialist currency for international property buyers
IFA Markets FX handles purchases in 170+ countries across all major property corridors: GBP to EUR, TRY, AED, THB, USD, AUD/NZD, ZAR.
Named specialist for every client. Forward contracts up to 12 months. No transfer limits. No fees — transparent spread disclosed before any commitment. FCA-regulated through Sciopay Ltd (firm reference 927951). All client funds in segregated accounts.