Buying Property in Europe as an Expat

Most EU countries allow non-residents to buy property, but the rules and restrictions vary. In Portugal, Spain, and Germany, there are no restrictions on foreign buyers. In Austria, non-EU buyers need provincial government approval in most states. In Denmark, non-residents generally cannot buy property without permission from the Ministry of Justice. Switzerland restricts non-resident purchases in most cantons. Check the specific rules for your target country before starting your search — our country profiles include property ownership rules for each destination.

Getting a mortgage as an expat is possible but harder than for residents. Banks typically require a larger down payment (20–40% vs. 10–20% for residents), proof of stable income in the local currency or a strong foreign currency, and a local bank account with transaction history. In Germany, expats can access mortgages through Interhyp or local Sparkassen. In Portugal, banks like Millennium BCP and Novo Banco offer expat mortgage products. In the Netherlands, mortgage advisors (hypotheekadviseurs) are essential — they navigate the complex Dutch mortgage market and can find products suited to expat profiles. Start the pre-approval process before house hunting.

The purchase price is just the starting point. Budget for transfer tax (varies widely by country — use our tax calculator for estimates), notary fees (mandatory in most continental European countries), legal fees, land registry fees, and potentially real estate agent commissions. In some countries (Netherlands, Belgium), the buyer pays the agent; in others (Spain, Portugal), the seller does. Notary fees alone can run 1–3% of the purchase price. In total, expect transaction costs of 5–15% on top of the property price depending on the country. Map all costs before making an offer so there are no surprises.

Hire an independent lawyer (not the seller's notary) to review the purchase contract, verify the property's legal status, and check for encumbrances (liens, easements, planning restrictions). In Spain, verify the Nota Simple from the Registro de la Propiedad. In Portugal, check the Caderneta Predial and Certidão Predial. In Germany, review the Grundbuchauszug for any existing mortgages or rights of way. Your lawyer should also verify that the property complies with local building regulations and that any renovations were properly permitted. Never skip legal review to save money — it's the cheapest insurance against catastrophic problems.

Owning property abroad creates ongoing tax obligations. Most countries charge annual property tax (IMI in Portugal, IBI in Spain, Grundsteuer in Germany). If you rent the property out, rental income is taxable in the country where the property is located — and potentially in your country of tax residence too (check your double taxation treaty). Capital gains tax applies when you sell, with rates and exemptions varying by country and how long you've held the property. Some countries offer reduced rates for primary residences. Model the full tax picture before buying — our financial planner can help you estimate the ongoing costs of ownership.