Buyers looking to purchase a property overseas are increasingly using the internet to find investments, according to experts in the sector.

Global Edge studied the search habits of purchasers on a variety of engines to identify which regions are the most popular.

Second homes in Spain were found to be particularly desirable for UK buyers. The Costa del Sol remains a popular choice, as is Tenerife and Mallorca.

Managing director Ashley Rigg commented: "It proves overseas buyers are increasingly looking beyond the traditional coastal resorts of old."

He noted that investors are beginning to broaden their search fields and said that this could in part be due to the glut of new-builds on the Costas.

This could mean that prices will be more negotiable in these areas as sellers struggle to sell their homes.

According to Holiday-Rentals and Savills, Spain accounts for 34 per cent of all British-owned foreign residences, making it the most popular destination for UK buyers.

UK residents who own holiday homes that they bought through their company are to receive exemption from a "living accommodation" tax charge.

The Finance Act 2008 means that those with overseas property will not face fees if they have bought property through their firm, reports STM Fidecs.

Those who can show that they have paid income tax before 2008 to 2009 on the "benefit of living accommodation" can now claim money back.

If the home was purchased for the director of a company or another member of their family or household, they will be eligible for the refund.

The legislation enables those firms whose "main or only asset is a relevant interest in the property and its only activities are ones that are incidental to its ownership of that interest" to claim back taxes paid.

In related news, the Association of International Property Professionals recently stated that Spain is a favourite location for second home buyers from the UK.

The European country accounted for more than one-quarter of all purchases made overseas in 2008.

Increasing numbers of Russian investors are looking into purchasing property in Spain rather than the stockmarket, it has been claimed.

An expert at the Bolt Property Group said that the consistently good weather and the "stunning countryside" were major factors in the rising interest, reports easier.com.

With a 46 per cent drop in the RTS index in May this year, many investors in the country are choosing to spend their money elsewhere.

Hadleigh Bolt commented: "We’ve seen a certain rise in the number of Russian nationals expressing interest in our bespoke properties."

He added that many of them want tailor-made homes in the western-European country and said that easier air access and plenty of facilities were also important.

First Choice recently identified Spain as a popular location for families from the UK looking for a cheap holiday. Its figures record an increase in the number of bookings for trips in half-term on the same period last year.

Investors with property in Spain could be set to benefit from the problems faced by airlines, it has been claimed.

Zoom Airlines and XL Airlines have both collapsed in the past week and Rome-based carrier Alitalia is currently in dire straits.

Those who own second-homes in far-off locations may find themselves struggling to cope with the economic fallout as demand for properties may reduce with the decline in easy cheap transport, according to NuBricks.com.

However, countries close to the UK, such as Spain, may experience a revival of interest in residences there as buyers look for guaranteed easy access.

The website claimed: "The ultimate winners in overseas property may well be the old standards of Spain, France [and] Portugal."

With fuel costs rising, carriers may need to up prices to more distant locations so holiday homes in nearby countries may be in even greater demand.

In related news, experts at property consultancy Savills recently stated that purchasing houses overseas was still a popular option among the over-50s and 60s in Britain.

Owners of buy-to-let property in Valencia may experience a surge in demand for their services in October as film buffs flock to the region’s movie festival.

Lasting for one week, the Mostra de Valencia begins on October 14th and showcases some of the best of Mediterranean cinema from the region’s top directors.

Organised by the Municipal Film Foundation, one of its express purposes is to encourage "civic participation in the cultural life of the city".

The 29th installment of the annual event is also hoped to promote interaction between the vast variety of cultures throughout the Mediterranean.

Films will be shown at three different venues throughout the city. These are the Fundacion Municipal de Cine, Paseo del a Mostra and the Museo de la Ciudad.

Those visiting Valencia on October 8th will be able to witness the Festival Internacional de Pirotecnia in which there will be a huge fireworks display over the city.

An expert in the sector has stated that the property market in Spain is likely to receive help through a number of tax reforms.

Steve Laird, head of Carrington Wealth Management, told CityWire that overseas buyers were likely to find the country’s property more appealing due to plans to end inheritance tax.

He said that while the weakness of the pound against the euro had led to a decreased interest from British buyers, this could be set to change with the upcoming reforms.

Mr Laird commented: "Spain has been hit by the credit crunch the same as the rest of Europe, particularly in housing because around 30 per cent of the country’s GDP is from construction."

Despite this, recent figures released by AXA revealed that it had seen a rise of 15 per cent in the number of people looking for international medical insurance in the first half of 2008.

AXA believes that if the trend continues, the UK could lose the equivalent of the entire population of Leeds within the year.

In the months of July and August, the number of mortgages issued in Spain continued to drop as domestic buyers struggle to get on the housing ladder.

Research conducted by the Spanish mortgage association AHE revealed that just over 760,000 mortgages were approved in the first half of 2008 compared with 861,000 in the same period last year, reports HomesOverseas.co.uk.

The difficulties faced by buyers in the Spanish property market and the glut of new-build homes in the country could mean investors from the UK could find a property at a bargain price.

Buyers at the higher end of the market are in a particularly strong position if they can pay for homes outright as agents and homeowners in the European nation may well be clamouring for their custom.

According to recent statistics published by the government in the UK, over 400,000 people in the country left to move abroad in 2006.

The Spanish government has unveiled plans to provide €3 billion (£2.4 billion) to support the nation’s property industry.

It is hoped that the move will provide increased employment opportunities in the sector and boost the interest in investment and rental properties in the country, reports the Financial Times.

Jose Luis Rodriguez Zapatero, the Spanish prime minister, said that the move would help the country to achieve an economic growth of 1.6 per cent this year.

He commented: "Employment is the main aim of the government."

Mr Zapatero added that real estate companies would also receive tax breaks, which he hoped would boost the rental market.

The move is likely to be welcome news for those looking at investing in a second home in the country as the money could prevent the low prices available at the moment from dropping much further.

Government figures from 2007 show that there was a rise in excess of 40,000 in the number of people leaving the UK to find homes abroad with Spain the destination for 20 per cent of the 400,000 leaving in 2006.

Experts have advised buyers considering purchasing a property in Spain to make sure that they do their research before hiring a real estate agent in the country.

Kurt Schefken at 3×24.com recommends getting a representative who is affiliated with a larger company and who has credentials that can be checked.

He stated that the language barrier and an ignorance of Spanish laws could result in problems further down the line if this advice is not followed.

Mr Schefken also stated that it was a good idea for purchasers to hire their own lawyers rather than simply going with the agent’s recommendation.

As with real estate agents, checking the background and qualifications of the lawyer as well as asking for references may be advisable.

Now may be a good time for buyers to purchase properties in Spain as the market is currently suffering so bargains may be available in new-builds and coastal areas, according to Property Showrooms.

Recent reports have suggested that the sales of property in some regions of Spain have fallen by up to 90 per cent.

The number of purchases of new homes has been hit particularly hard by the downturn, reports Property Week.

With residential property declining in price due to heavy exposure, many developers are being forced to refinance.

However, this trend may be beneficial to buyers thinking of purchasing a house in the country as they may be able to negotiate lower prices for second-homes.

Recently, a Scottish couple took advantage of this, purchasing a £140,000 property on the Costa Blanca for just £103,000, reports the Sunday Mail.

John and Janet Wilson saved more than 25 per cent on their house in a new development, which has a dining area, kitchen, two bedrooms and a balcony.

This has led them to recommend residences in Spain for those looking for a holiday home overseas.