Location, location, location
So you want to retire abroad? Well, the world is your oyster, but where should you go? Don’t be seduced into buying a cheap property just because it’s easy to get a cheap flight to a nearby airport. Low-cost routes to small regional airports are frequently changed or cancelled, depending on demand.

It makes most sense to stay close to a major airport and look for a home in an area that is well serviced by public transport, even if this means buying a smaller or more expensive property. Ease of access is one of the main reasons why there are so many English-speaking expats in Spanish resort areas such as the Costa del Sol, the Costa Blanca, the Costa de la Luz and Valencia.

Popular destinations
Noreen Hynes, the managing director of Aquarius Properties, says that Spain is still by far the most popular choice for Irish people retiring overseas. “This is understandable because of its close proximity and excellent access. Countries like Turkey are also attracting thousands of retirees, especially in places like Bodrum, Kusadasi and Alanya. Many people also retire to the US, but this is complicated because you can only stay for around 120 days at a time. Countries like Croatia, France and Italy are also popular.”

As you flip through property brochures, consider how you are going to finance your overseas purchase. Although prices have fallen by up to 40 per cent in some popular European resorts, values have declined in Ireland too. Few, if any, Irish bank managers will now consider an equity release loan for an overseas property. You could sell your Irish home to fund your foreign one but Hynes strikes a note of caution. “If someone sells up permanently now and returns in six years, they may not be able to afford a house at home,” she says.

Try before you buy
Although it’s easy to daydream about living in the sun, remember that holiday resorts can be very different places in the winter. It makes sense to spend an extended period in the country of your choice, preferably during the off-season, before you commit to moving. Many travel agents offer special deals on five- or six-week sun holidays in the winter.

By staying for an extended period, you will also get a good handle on the cost of living. Before you go at all, however, you can research typical living costs on expat websites such as JustLanded.com, ExpatForum.com, ExpatExchange.com and EscapeArtist.com.

Health is wealth
While your Irish travel insurance or health insurance covers you for medical care overseas while you are on holidays, this will not be the case if you move permanently to another country.
If you move to an EU country, holding a European Health Insurance Card (formerly an E111) will entitle you to free or low-cost medical treatment for the first six months, after which you may still be entitled to public healthcare. If you get an Irish social welfare pension, for example, you are entitled to public health services in other EU countries. However, you will need to fill out a form (E121) to establish that entitlement. Further information is available from the overseas section of the Health Service Executive (01 635 2379).

In any case, you may still want to take out private health insurance to access better or faster treatments and more English-speaking medical staff. In Spain, for example, expect to pay about €500 a year for a decent plan. And don’t forget, if you have a pre-existing medical condition, talk to your GP and/or specialist about your plans before committing to the move abroad.

Money talks
Before moving overseas, get your financial affairs in order. If you are in receipt of a State contributory pension, you can arrange to have that paid into an overseas bank account. The same applies to some other social welfare payments and to private or group pensions. Make sure you have internet banking set up both in Ireland and the second country so you can manage your money easily from overseas.

Most important of all, consult an accountant or a tax adviser before moving. International tax regulations are extremely complicated and the amount of tax you will have to pay and in which country you have to pay it will depend on how much of the year you spend out of Ireland and on the laws of the country to which you move.

If you go ahead with the move, it is also critical to make new wills, one for Ireland and one for the other country. Inheritance legislation and tax rules vary dramatically from country to country. Without properly written wills, your heirs could have to deal with complex legal issues and pay huge inheritance tax bills of 40 per cent or more.

Be practical
Remember that, no matter which country you are considering, you will need to be open to living in a different culture. You won’t have family or friends close by, you may not speak the language, the pace of life is different and you won’t be familiar with the ways in which everyday problems are handled. Furthermore, look ahead and think about whether you will be able to continue living in your new home in 10 or 20 years, when you may have health problems and be less mobile.