Europe has long been a dream destination for people looking to buy a second home, retire abroad or make an investment in property overseas.
The continent offers a compelling combination of attractive climates, diverse cultures, rich history, excellent healthcare systems, and in many areas, more affordable property prices compared to the UK or US.
However, buying property abroad comes with its own unique challenges, including navigating unfamiliar legal systems, understanding residency and visa implications, and managing international money transfers.
In this article, we go over the key things you need to know if you’re thinking about buying property in Europe, from limitations on foreign buyers to planning your currency transfers.
Can foreigners buy property in Europe?
Yes, in most European countries there are very few restrictions on foreign ownership of residential real estate. This means you can generally buy a holiday home, investment property or even a permanent residence without needing to be a citizen or resident of the country.
That said, there are a few exceptions and important details to be aware of. For example, some countries impose restrictions in certain sensitive areas, such as military zones or rural regions, where foreign ownership may be limited or subject to special permission.
Switzerland has stricter rules on foreign property ownership that vary by region. Hungary also has some restrictions in rural areas to protect local landowners.
It’s also crucial to differentiate between property ownership and residency rights. Buying a property abroad does not automatically grant you residency or the right to live there indefinitely. You will need to check the specific visa and residency rules for the country you’re interested in.
Choosing where to buy property in Europe
Europe offers incredible variety when it comes to climate, culture, and property prices, meaning there’s something for every taste and budget.
If sunshine and mild winters are your priority, Mediterranean countries like Spain, Portugal, Italy, and Greece will appeal, with coastal regions offering long summer seasons and a laid-back outdoor lifestyle. By contrast, if you’re drawn to cooler climates, alpine sports, or lush countryside, destinations like France’s Rhône-Alpes, Austria, or northern Italy offer year-round appeal.
Prices can vary dramatically across the continent. Western Europe’s capitals and coastal hotspots command premium prices, while rural France, inland Spain, and parts of Portugal can be surprisingly affordable. Eastern Europe – including countries like Bulgaria, Romania, and Croatia – tends to offer lower entry prices, though these markets may have different legal and infrastructural considerations.
Your choice should balance lifestyle aspirations with practical considerations like travel links, healthcare quality, local infrastructure, and your long-term financial goals.
Popular European countries for property buyers
Spain
Spain remains a perpetual favourite thanks to its warm Mediterranean climate, stunning beaches and lively culture. Popular areas like Costa del Sol, Alicante and the Balearic Islands offer well-established English-speaking expat communities, often making the transition easier.
Property prices in many parts of Spain are still relatively affordable compared to major UK and US cities, and the country boasts a robust healthcare system and low cost of living. The Spanish property market is mature, with clear legal processes for foreign buyers.
Explore all our articles about buying property in Spain.
France
France appeals to buyers seeking a combination of rural charm and sophisticated urban living. From the vineyards of Bordeaux to the elegance of Paris, the French property market offers a broad range of options.
France is known for its stable market and strong buyer protections, and the lifestyle is characterised by excellent food, wine, healthcare and cost of living. Though the bureaucracy can be complex, many foreign buyers appreciate the security of long-term investment here.
Explore all our articles about buying property in France.
Portugal
Portugal has grown in popularity in recent years, particularly among US buyers. This is in part due to its favourable tax regime, especially the Non-Habitual Resident (NHR) scheme, which offers tax benefits to eligible new residents.
The Algarve region is a favourite among retirees and holiday homeowners because of its sunny weather and affordable coastal properties. The overall cost of living in Portugal is also relatively low compared to much of Western Europe, making it an attractive option for those seeking a more budget-friendly lifestyle abroad.
Explore all our articles about buying property in Portugal.
Italy
Italy’s rich history, world-renowned cuisine and scenic countryside make it a dream destination for many. Buyers are often drawn to the historic homes in Tuscany, Umbria, or the Amalfi Coast, many of which come with renovation opportunities.
The property market can be slow-moving, and bureaucratic processes are often lengthy, but Italy offers a unique charm and investment potential for those willing to be patient.
Greece
With its beautiful islands and low property prices, Greece is increasingly attracting foreign buyers, especially from the US. Unlike Spain and Portugal, the country’s golden visa programme still allows investors to gain residency through property purchases, making it an appealing choice.
Greece’s affordability and relaxed lifestyle, combined with opportunities for rental income in popular tourist destinations, make it a worthwhile consideration.
The process of buying property in Europe: What to expect
Buying property in Europe generally follows a similar process across countries, though each has its own legal nuances. Here’s what buyers can expect:
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Finding a property – This might be through estate agents, online portals or recommendations from locals and expats. Viewing properties in person is essential to avoid any unexpected surprises.
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Making an offer – Once you find a suitable property, you typically make a formal offer. In many countries, offers are non-binding initially but do require a deposit once accepted.
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Legal checks and due diligence – Engaging a local solicitor or notary is vital to ensure the property has a clear title, is free from debts or liens, and that all planning and building permissions are in order.
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Preliminary contracts and deposits – At this stage, you typically sign a preliminary contract to confirm your intention to purchase the property. You’ll also pay a deposit, often around 10% of the purchase price, to secure the agreement.
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Completion – The process is finalised when the final contract is signed by both parties. Ownership of the property is officially transferred, and you’ll pay the remaining balance of the purchase price.
Throughout this process, timeframes can vary widely. Completion can take from a few weeks to several months depending on the country and the complexity of the transaction. Language barriers can also be challenging, so having trusted local advisors and translators can make a significant difference.
Key costs to consider when buying European property
Beyond the purchase price, you should be aware of several additional costs that can significantly increase the total amount you’ll need to budget for. These include:
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Legal fees and notary costs – These cover the services of a solicitor or notary who will carry out essential tasks such as conducting property searches, preparing contracts and overseeing the legal aspects of the transaction.
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Taxes – Property-related taxes vary between countries. Stamp duty or property transfer tax can range from around 2% to over 10% of the property’s value, and in some countries, VAT may also apply, particularly on new-build properties.
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Ongoing costs – Owning a property abroad comes with recurring expenses. These might include maintenance charges, insurance premiums, and local property taxes. These should all be factored into your annual budget.
Currency transfers – International currency exchange is one of the most overlooked yet critical aspects of buying property overseas. Fluctuations in exchange rates can substantially affect the amount of money you ultimately pay. Read our article on how to get the best exchange rates for tips on getting the most from your overseas money transfers.
Financing options for foreign buyers of European property
How you fund your European property purchase will depend on your personal finances, the country you’re buying in, and whether you’re planning to live in the property or use it as a holiday home or investment.
Buying a European property with cash
Many overseas buyers opt to pay in cash, particularly for lower-cost properties or to secure a quicker sale. This avoids interest costs and simplifies the process, but it does mean tying up significant capital.
Can I get a mortgage for a property in Europe?
Many European countries – such as Spain, Portugal, France and the Netherlands – have established mortgage markets for non-residents. However, foreign applicants often face stricter lending limits and higher deposit requirements than locals.
In some countries, it may be harder to access a mortgage. Poland, Hungary and some Scandinavian countries have restrictions on lending to foreign nationals and additional approval processes.
In any case, it’s a good idea to work with a broker familiar with foreign-buyer mortgages. They can help you save time and navigate hurdles such as language and documentation.
Remortgaging at home to buy European property
Some foreign buyers release equity from a property they already own, using the funds to purchase abroad. This can be cost-effective if mortgage rates are favourable in your home country, but it also places your existing property at risk if you can’t keep up repayments.
Developer financing
For new-build properties, some developers offer staged payment plans or short-term financing options. These may be less flexible but can help spread costs during construction.
Whichever route you choose, keep in mind that currency exchange rates can affect the actual amount you’ll pay over time, especially for mortgage repayments or staged payments in a foreign currency. Working with a currency specialist can help you secure competitive rates and protect your budget from adverse fluctuations.
How long can I stay in Europe? Short-term travel, visas and residency
If you’re from the UK, US or another visa-exempt country, the 90/180-day rule is one of the most important things to understand before buying in Europe. Most popular destinations – including France, Spain, Italy, Portugal and Greece – are part of the Schengen Area, which lets you visit without a visa for up to 90 days in any rolling 180-day period.
Multiple trips add up, so you’ll need to track your days carefully. Time spent in non-Schengen countries (like the UK, Ireland, Cyprus, Romania or Bulgaria) doesn’t count towards the limit.
Owning a home doesn’t give you extra time, so if you plan to spend more than 90 days in any 180-day stretch, you’ll need to apply for a long-stay visa or residency permit from the country where your property is located. Overstaying can lead to fines, entry bans, or problems when travelling in the future, so it’s vital to plan ahead.
Every country in Europe – whether in the Schengen Zone or not – will have its own visa rules, options and eligibility criteria, so be sure to do your research. We have guides for applying for a French visa and applying for a Spanish visa.
Next steps for buying property in Europe
If you’re forging ahead with plans to buy European property, the next step is to decide where you want to buy. Be sure to look beyond the climate and culture, and consider things like property prices, political stability, travel limitations, and restrictions on foreign buyers.
Once you’ve picked a location, be sure to do a deep dive into the various factors you need to consider to make your European property dream a reality. We have plenty of articles and guides about buying overseas property to help you get started.
It’s also a smart idea to consider currency exchange early on. The sooner you start, the more likely you are to get a favourable exchange rate and maximise your money transfers. Get in touch with us to find out how we could help you, or open a free account online.
