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Retiring to the sun - hotspots

The vast majority of Britons buying retirement homes abroad still head for Spain and France, with Italy and Portugal in the second rank

But overseas property experts have identified a widening interest in a host of other countries as the European Union expands and affordable global travel throws open far-flung destinations to the more adventurous.

Turkey & Cyprus

Within Europe, the eastern Mediterranean has probably witnessed the biggest surge in interest among aspiring retirees, with Turkey and Cyprus heading the list of most popular new homes-from-home.

Twenty years ago, Turkey was a footnote on the list of favourite holiday destinations. Now nearly a million British tourists visit every year and growing numbers go on to buy homes with a view to retiring there. Turkey has plenty to offer the retiree, especially while it remains relatively unspoilt. Property prices and the cost of living are low but the journey time is a a disadvantage, direct flights taking about four hours.

The Greek portion of Turkey’s neighbour, the island of Cyprus, has been very popular for years, perhaps because of its low taxes, affordable cost of living and new-found European Union status to attract expatriates. Again, the journey time is over four hours but devotees would argue that Greek hospitality and the cheaper lifestyle more than compensate for the inconvenience.

Malta

Fellow new EU entrant Malta also offers retirees significant tax advantages, since residents pay only 15% income and 5% inheritance tax. Malta has a famously Anglophile culture and, if moving there permanently, you can buy any property irrespective of value.

This is in contrast to non-residents who, thanks to a government policy designed to prevent native families being priced out of the market, must buy property above certain price limits.

Slovenia

The other new EU member slowly rising up the retirees’ hit parade is Slovenia, a tiny country often referred to as the “Balkan Switzerland”. It has beautiful lakes and mountains, and easy accessibility by air. Property there is still great value for money.

Croatia

Slovenia’s much bigger neighbour, Croatia, perhaps offers the most potential if what you are looking for is a “sun and sand” destination combining history, breathtaking scenery and a coastline dotted with a thousand islands. Properties are still cheap but be prepared for a bureaucratic buying process which can take up to a year to complete.

Bulgaria

Perhaps the most surprising prospect is the most easterly of the Balkan states, Bulgaria, whose Black Sea resorts, once Soviet-dominated, have been redefining themselves as package tour hotspots. The rural hinterland offers pastoral delights aplenty – and at prices that vary from good value to frankly unbelievable.

Tipped for EU entry in 2007, Bulgaria is expected to give buyers impressive capital returns in the long term, while offering an amazingly low cost of living right now. Downsides are bureaucracy and inaccessibility, indirect flights to the Black Sea resort of Varna can take up to eight hours.

Other European options

Hungary, the Czech Republic, Slovakia and Poland are all attracting British property investors. Again, prices are low and, aside from their wonderful historic cities like Budapest and Prague, these countries boast some beautiful countryside.

More distant shores

Florida is a favourite with British holiday home buyers, and there are retirement communities galore. However, immigration rules mean that most people can live there for up to six months a year only, so full retirement tends not to be an option.

More than half of foreign buyers in South Africa are British, which is unsurprising when you consider the incredible natural beauty of the country and the fact that a four-bedroom house with pool there should set you back no more than £100,000.

Several Asian and South American countries, such as Malaysia, Belize and Panama, are marketing themselves as tourist destinations. Many have created tax and residency breaks to attract affluent retirees to their shores.

Even the Middle East is doing everything it can to attract buyers, although it is doubtful how appealing the newest properties are to a more mature audience. Watersports fanatics might wish to consider one of the developments springing up around Red Sea resorts like Egypt’s Sharm El Sheikh.

Fans of conspicuous consumption might prefer nearby Dubai, where huge apartment skyscrapers are springing up to lure new residents. One development is a man-made peninsula in the shape of a giant palm tree; another is a string of continent-shaped islands in the shape of (and titled) 'The World'.

If none of these appeal, there is always the Indian region of Goa, the Kenyan resort of Malindi or Aracuju in north-east Brazil.

All very adventurous, of course, but prospective retirees should take extra care over visas, taxation and pensions which may not rise with inflation if they become full-time residents.

This article was created: 8 August 2006.
This article was last edited: 13 November 2006.

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