Are you an American considering buying property in Europe? With more Americans looking to relocate, property investment has become a key way to secure residency. The European housing market has become more affordable due to the strength of the dollar and the weakening Euro.
Buying property in Europe not only offers a sound investment opportunity but can also provide a pathway to residency in many countries. Whether for a vacation home, investment, or permanent residence, real estate in Europe is an attractive option.
This guide will walk you through everything you need to know about buying property in Europe—from the taxes and fees to a simple step-by-step process for purchasing. Whether you’re a first-time buyer or a seasoned investor, understanding how to navigate buying property in Europe will set you up for success.
Here is what to expect:
- Can Americans buy property in Europe?
- Can foreigners buy property in Europe?
- Can You Buy Property in Europe and Get Residency?
- Can you buy land in Europe?
- What does the European property market look like?
- What are the legal requirements for buying a property in Europe?
- The 8 Best Places to Buy Property in Europe
- How to Buy Property in Europe as an American: Step by Step
- How much do apartments cost in Europe?
- What kind of taxes and fees will you need to pay?
Can Americans buy property in Europe?
Yes, Americans can buy property in Europe, but the rules differ across countries, making it an exciting yet detailed process to navigate. In the UK, there are no restrictions, though buyers must follow anti-money laundering laws and often work with a solicitor.
Germany allows foreign property purchases freely but requires a notary, with additional costs like purchase taxes. While open to foreign buyers, France involves a more complex legal process and higher fees. Spain welcomes buyers with a tax identification number (NIE) and charges taxes such as VAT for new builds.
Italy requires a fiscal code (codice fiscale) for real estate transactions and includes registration and notary fees in the costs. In Greece, a tax registry number is needed for foreigners buying property, and there may be restrictions near military zones. Each country offers unique opportunities and challenges, so working with local experts can help ensure a smooth transaction.
What does the Europe property market look like?
The eEuropean real estate market varies widely by country and city, but it offers a mix of stable and high-growth opportunities. However, recent trends have shown that energy-efficient homes are highly sought after, driven by EU green building regulations. Remote work has also shifted demand from major cities to smaller towns and rural areas. The European property markets generally offer 3-7% annual rental yields, with higher returns in emerging markets and tourist hubs. Here is a light overview of what the market looks like in the continent.
Western Europe
- Germany: Property prices rose 7.6% year-on-year in 2023, with Berlin seeing 6.4% growth.
- France: The average price per square meter in Paris is about €10,500. Nationwide, prices increased by 4.5% in 2022 but slowed in 2023.
Southern Europe
- Spain: House prices grew by 3.5% in 2023, averaging €1,750 per square meter. Cities like Madrid and Barcelona are pricier but offer higher rental yields, around 5-6%.
- Portugal: Lisbon’s property market saw a 6.8% rise in 2023, with an average price of €3,200 per square meter.
- Greece: Property prices increased by 12% year-on-year in Athens, with investment boosted by the Golden Visa program.
Eastern Europe
- Romania: Bucharest offers properties at an average of €1,450 per square meter, with prices rising about 8% annually.
- Bulgaria: Sofia’s real estate market grew by 10% in 2023, with an average price of €1,300 per square meter.
Luxury markets
- Monaco is the most expensive market, averaging €48,000 per square meter in 2023.
- London: Average property prices are £532,000 (€610,000), and they will grow by 3.3% in 2023.
Can You Buy Property in Europe and Get Residency?
Yes, buying property in Europe can sometimes lead to residency, depending on the country. Several European nations offer “Golden Visa” programs where property investment grants residency, such as in Greece from €250,000 and Spain from €500,000. These programs often allow you and your family to live in the country, with the possibility of extending to permanent residency or citizenship after a few years.
Other countries like Malta also offer residency via property investment, starting at €300,000 for properties outside urban centers. However, each program comes with different requirements, including minimum stay periods, taxes, and the need to maintain the investment. It’s important to research each country’s specific rules and consult with legal experts before proceeding.
Can you buy land in Europe?
Yes, you can buy land in Europe, but the rules and restrictions differ significantly depending on the country. Generally, locals, Americans, and other foreigners can purchase land in most European countries. However, certain nations may impose restrictions based on factors such as the buyer’s residency, nationality, or land type (e.g., agricultural land versus residential land).
Here’s an overview of what to expect:
Countries with few or no restrictions
Many European countries welcome foreign investment in real estate and land, making it easy for non-residents to buy property:
- Spain: Foreigners can buy residential, commercial, and agricultural land without restrictions.
- Portugal: Open to foreign buyers, with attractive residency options such as the Golden Visa program.
- Italy: Non-residents can purchase land, including farmland, without restrictions.
- France: Foreigners can freely buy land and properties, including agricultural and commercial land.
- Germany: No restrictions for foreign buyers, with straightforward processes for purchasing land.
Countries with some restrictions
Certain countries limit foreign ownership in specific situations, such as purchasing agricultural land or requiring local approval:
- Switzerland: Non-residents face restrictions on the type and size of land they can buy, particularly for vacation homes.
- Hungary: Foreigners need government approval to purchase agricultural land.
- Denmark: Requires foreign buyers to have a local residence or demonstrate a close connection to the country.
- Poland: Non-EU citizens may need special permits to purchase agricultural or forest land.
What are the legal requirements for buying a property in Europe?
The legal requirements may be different depending on the nation’s laws, but there are some critical aspects to keep in mind when purchasing property in Europe.
- Permission to buy: Most European countries allow foreigners to purchase property, but some, like Denmark or Austria, may require additional permissions for non-EU buyers.
- Tax identification number: Many countries, such as Spain and Portugal, require a local tax ID to complete a property transaction.
- Legal assistance: Hiring a local lawyer or notary is often necessary to handle contracts, property registration, and due diligence.
- Financing: Non-residents can often secure mortgages, but down payments are typically higher, ranging from 20-40%.
- Additional costs: You will need to pay transaction fees, property taxes, and sometimes stamp duties, which vary by country.
The 8 Best Places to Buy Property in Europe
1. Lagos, Portugal
If you’re looking for the best place to buy commercial property in Europe, you may want to consider purchasing property in Lagos. Located in Portugal’s Algarve region, it is a picturesque coastal town renowned for its stunning beaches, dramatic cliffs, and charming historic center. It boasts a rich maritime history and offers a vibrant cultural scene with a blend of traditional Portuguese architecture and lively nightlife.
While the Portugual Golden Visa removed its real estate investment options, those interested in buying property in Portugal can still do so. However, it won’t qualify you for the Golden Visa.
There is only one thing to look out for before purchasing property in Lagos: scammers. You should always confirm that your broker is registered with Associacao de Mediadores Imobiliarios and has a registered license number. You should also hire a qualified attorney before purchasing or renting a property.
2. Valencia, Spain
Spain is famous for its warm southern European weather, delicious cuisine, tranquil, picturesque landscape, and calm and relaxed lifestyle – which makes investing in property in Spain a decision you will most likely not regret.
One of the major Spanish cities, Valencia, is known for its sports, cultural music events, and art and for offering some of the most competitive resale housing prices.
Due to the area’s attractiveness, property values are predicted to rise over the coming years. However, with European house prices dropping against the dollar, foreigners and American buyers interested in buying property in Spain and qualifying for Spain’s Golden Visa program may want to consider purchasing a commercial or residential property valued at least €500,000.
Spain’s most visited cities are Madrid, Barcelona, and Malaga. However, Valencia offers more reasonable rates for necessary services. Valencia is also a fantastic central location full of culture and foreign trade, and its port plays a significant part in its economic growth.
3. Valletta, Malta
The capital city of Malta, Valletta, is one of the world’s oldest cities and is only a short flight from most of Europe. The city has a classic ambiance and is the country’s center for business, commerce, dining, and other activities, which makes it one of the best cities to invest in Malta.
Xlendi, St. Paul’s Bay, and Marsalforn are among Malta’s less-expensive areas for investors looking for cheap European real estate. However, Malta mandates that foreigners pay a minimum of €143,410 for a flat or maisonette and at least €247,701 for any other property. They are also required to get an Acquisition of Immovable Property permit.
The hospitality culture can be another advantage for anyone looking to invest in Malta. There are also top-notch medical treatment centers, a sizable English-speaking population, and a generally welcoming environment. The country also offers several residency options, including Malta citizenship by investment and Malta residency by investment, both of which offer real estate options starting from €650,000.
4. Limassol, Cyprus
Cyprus is the sunniest island in Europe and can be reached in as little as four hours if you’re traveling from London or Dubai. It is a wonderful place to invest in because of the country’s sustained housing expansion. Some of the top cities where people can purchase property in the Republic are where most people retire or simply invest in Cyprus.
One such city is Limassol, a vibrant city in Cyprus that mixes a cosmopolitan lifestyle, rich history, and old-world charm. It boasts a bustling center with clubs, eateries, shops, and the renowned Limassol Marina. It makes sense that the area is in great demand by real estate investors, given that several upscale visitors return year after year, seeking Limassol’s coastal setting and upscale amenities.
Foreigners can buy European property and vacation rentals reasonably easily in the Republic. However, British nationals are subject to certain limitations, including a one-property limit and the need to obtain several licenses that must be requested from the Council of Ministers. A real estate purchase can also qualify for the Cyprus Golden Visa.
5. Paris, France
Michelin-starred restaurants, world-class museums, many parks, a superb work-life balance, and so much more contribute to Paris’ allure. All of that is reason enough for the value of real estate property to rise in that city.
Yet, despite the rise of Parisian real estate prices, a lot of American buyers and wealthy foreign investors discover that they may profit from their Parisian assets with significant rental income.
Those who can afford to buy a house in Paris or purchase real estate in France can benefit from the recent zero interest rates in France by buying property early on and thereby enjoy the added benefit of domestic financing.
6. Davos, Switzerland
Davos, a picturesque Alpine town in Switzerland, attracts travelers seeking fresh air, scenic paths, and stunning landscapes. Known for its world-class health resorts and hosting major conventions and sports events, the town emphasizes the importance of nature for well-being.
With increasing interest in the mindful lifestyle and the impact of nature, property prices in Alpine cities like Davos are expected to rise. However, Switzerland has restrictions on foreigners’ property ownership. Non-residents cannot buy residential properties but can purchase a second home or holiday property if employed in Switzerland. Foreigners can also invest in commercial real estate without restrictions, provided the property is for investment purposes.
5. Milan, Italy
Italy is a stunning Mediterranean country with a fascinating culture, rich history, wonderful environment, and delicious food. Milan is among Italy’s most livable major cities, considering its diverse population, the standard of living you can anticipate, and the amenities provided there, such as reliable public transportation. Experts predict that home values in Milan will start to increase again in the upcoming years.
In general, non-EU foreigners can purchase property in Italy without any limitations. An international agreement must authorize the acquisition, and the funds must be properly documented. However, there are no restrictions on what EU citizens can buy. Investors can also apply for the Italy Golden Visa to gain a better look into the market.
7. Krakow, Poland
One of Europe’s best-kept secrets regarding real estate investments is Poland. This is because Krakow served as the nation’s tourist hub during the rise of the pre-pandemic tourism sector.
There is something here for everyone: the city impresses with its historical buildings and many museums and boasts charming cobbled streets and glistening evening lights. In Krakow, you’ll have ties to other EU nations because the cost of getting property is low enough for first-time homebuyers.
Property in Krakow is split between student dorms and vacation rentals due to its large student community and ten universities. You can purchase a reasonably priced apartment here and quickly turn a profit because of the city’s high rental demand. To purchase real estate in Poland, you must first purchase a special permit from the Polish Ministry.
8. Berlin, Germany
Berlin, Germany’s capital, is a vibrant city known for its history, cultural diversity, and arts scene. Famous landmarks like the Brandenburg Gate and Berlin Wall highlight its past, while its modern architecture and lively nightlife showcase its dynamic present.
Investing in property in Berlin is appealing, as it offers a variety of real estate options, from historic apartments to modern buildings. Although property prices are rising, they remain lower than in other major European cities.
Foreigners and Americans can freely purchase property, and popular neighborhoods such as Mitte, Prenzlauer Berg, and Kreuzberg attract many buyers. Hiring a local real estate agent is recommended to navigate legal matters and market trends. Additionally, Berlin’s strong rental market provides opportunities for income generation, making it a great choice for both investors and homebuyers.
How to Buy Property in Europe as an American: Step by Step
Research the country’s rules
Understand local laws for foreign buyers, as some countries have restrictions (e.g., Denmark and Austria). Check visa or residency requirements if you’re planning to live there.
Set your budget and financing
Determine your budget, including additional costs like taxes, notary fees, and maintenance, and decide whether you’ll pay in cash or take out a mortgage. In some countries in the European Union, foreigners can apply for local mortgages.
Find a reliable real estate agent
Hire a local agent who is familiar with the area and fluent in English. They can help you navigate the market and negotiate deals.
Search for properties
Look online through platforms like Rightmove Overseas, Idealista, or Kyero. Visit potential properties in person if possible to ensure they meet your needs.
Hire legal assistance
Engage a lawyer who specializes in property law to ensure the process is smooth and legal. They will handle due diligence, verify ownership, and check for outstanding debts on the property.
Make an offer
Submit an offer through your agent or directly to the seller. Be prepared for negotiations on price and terms.
Sign a preliminary contract
This is a binding agreement in many European countries, and pay a deposit, typically 5–10% of the property’s price.
Secure financing
If using a mortgage, finalize the loan process. Provide proof of income, credit history, and other required documents.
Complete legal procedures
Your lawyer and notary will finalize the paperwork. Pay any taxes, registration fees, and the balance of the property price.
Register the property
Officially register the property in your name with the local land registry. Keep all documents, including the title deed, for your records.
Obtain residency (if applicable)
If offered, apply for residency through the country’s property investment program. Follow specific requirements, like minimum investment amounts.
How much do apartments cost in Europe?
Country | City | Price (sqft) City Center | Price (sqft) Outside City Center |
Portugal | Lagos | $300.00 | $180.00 |
Malta | Valletta | $1,050.00 | $700.00 |
Cyprus | Limassol | $550.00 | $350.00 |
France | Paris | $1,170.00 | $620.00 |
Switzerland | Davos | $1,800.00 | $1,200.00 |
Poland | Krakow | $480.00 | $480.00 |
Italy | Milan | $850.00 | $480.00 |
What kind of taxes and fees will you need to pay?
Fee/Tax Type | Description | Range/Amount |
Real Estate Agency | Commission | Paid to the agency facilitating the property purchase. |
Mortgage Broker Fees | Charged by brokers for helping secure a mortgage. | Up to 1% of loan amount or a flat fee. |
Notary Fees | Fees for notary services, commonly required fo | 1% to 2.5% of property price. |
Stamp Duty/Property | Transfer Tax | 1% to 8%, depending on the country and property value. |
Capital Gains Tax | Tax on the profit made from selling the property. | 10% to 30%, depending on holding period and country rules. |
Currency Exchange Fees | Fees charged by banks and financial institutions for currency conversions during international transactions | Varies; typically a markup on the exchange rate. |
Legal/Administrative Fees | Fees for legal services, contracts, registration, etc. | Varies, often a few hundred to a few thousand euros. |
How Can Global Citizen Solutions Help You?
Global Citizen Solutions is a boutique migration consultancy firm with years of experience delivering bespoke residence and citizenship by investment solutions for international families. With offices worldwide and an experienced, hands-on team, we have helped hundreds of clients worldwide acquire citizenship, residence visas, or homes while diversifying their portfolios with robust investments.
We guide you from start to finish, taking you beyond your citizenship or residency by investment application.
Frequently Asked Questions about Buying European Property
What is the easiest country to buy property?
Portugal is the easiest European country to buy property in. Those who wish to purchase property in Europe can purchase commercial property. However, residential property under Portugal’s Golden Visa scheme is no longer accepted.
Can a foreigner buy property in Europe?
American or non-EU residents are unrestricted from purchasing property in Europe. They might profit from a government program that pays for energy efficiency upgrades when purchasing an investment property.
Which European country is best for property investments?
France, Cyprus, and Portugal are some of Europe’s best countries for property investments. If your main search is to buy property in Europe under $100,000, it may not be as easy as Europe is a popular tourist and economic destination, which means that the property market there is in high demand.
Can you live in Europe if you buy a house?
Europe’s Golden Visas enable international buyers to acquire a residence visa in exchange for purchasing real estate in any of the EU nations. Several investments can get you residency in some European countries, while others might even qualify you for citizenship.
Can US citizens buy property in Europe?
Yes, US citizens can purchase property in Europe. In fact, many US citizens have purchased property in Europe in recent times due to the soaring dollar and rising interest rates, which have made American buyers splurge on real estate acquisition across all of Europe as property prices have decreased respectively.
