WE looked at four of the most popular locations. Tax, planning and legal requirements are complex and you should consult a local solicitor who speaks good English. Even if you buy abroad you are still liable to UK taxes as long as you are a British national and remain a UK resident. But Revenue and Customs has arrangements with most countries to make sure you're not taxed twice. Sadly, you'll always pay the higher rate. So if you are a higher-rate taxpayer in the UK (paying 40%) and you rent out your property in Spain, the Spanish Government will charge you only 25% income tax - but you'll have to pay the 15% difference here.

FRANCE:
Average cost of property: £130,000. Income tax on rent: Up to 48%. Capital gains tax: 16% for EU residents, then further reductions after two years. Inheritance tax: Complicated system but can pay up to 40%. Wealth tax: Up to 1.8% of property's value every year. Estate agents' fees: From 4% to 12%. In some areas, the buyer pays half. Stamp duty: 4.89% but exemptions apply. VAT on new properties: Up to19.6%. Council tax: Based on property's value. Exemptions if property is vacant.

SPAIN:
Average cost of property: £130,000. Must obtain an NIE number - a foreigner identification number. Income tax on rent: 25% for non-residents. Tax breaks available. Will still be taxed if you don't rent out home at level set by government. Capital gains tax: 35% when you sell property. Inheritance tax: Not a fixed rate. Depends on number of factors including the wealth of beneficiary, not just benefactor. Wealth tax: From 0.2% to 2.5% of value of property every year.Stamp duty: Transfer tax of 6%/7% but not paid if you've already paid VAT. VAT: 7% for newly-built properties. Rises to 16% for plots of land, commercial premises. Council tax: Payable along with other small taxes. Set by town halls.

ITALY:
Average cost of property: £130,000. A Fiscal number is required - the equivalent of a National Insurance number. Income tax on rent: About 43% for non-Italian residents. Tax breaks available. Will still be taxed if you don't rent out home. Capital gains tax: None, but annual tax on property. Inheritance tax: None. Wealth tax: None. Stamp duty: Registration tax of 7% to 15%. VAT: Up to 20% on new properties. Council tax: 4 to 6% of land registry value. Separate taxes for rubbish disposal and water.

PORTUGAL:
Average cost of home: £90,000. Income tax on rent: 15%. Capital gains tax: 25% for non-residents. Inheritance tax: None. Wealth tax: None. Stamp duty payable: Transfer tax of 2% to 8%. This replaced inheritance and gift tax. VAT: Up to 21% on new properties. Council tax: Twice a year up to 0.8%.

Source: thisismoney.co.uk