Buying Property Abroad — The Complete Expat Guide 2025
Foreign ownership rules, how to get a mortgage as a non-resident, the full buying process from offer to keys, purchase costs by country, currency risk, and how to buy remotely without getting burned.
Should You Buy? The Rent-vs-Buy Question Abroad
In your home country, the rent-vs-buy calculus is familiar. Abroad, it's harder — and the case for buying is weaker than most expats expect, especially in the early years.
Property ties up significant capital in an illiquid asset in a legal system you don't fully understand, in a country you haven't yet fully committed to. It creates ongoing obligations — maintenance, local taxes, mortgage payments — regardless of whether you stay. And selling foreign property is slow, expensive, and has tax implications in multiple countries.
The standard advice: rent for at least one year before buying. Not because buying is wrong — it may be the right long-term move — but because you will learn enormous amounts about the local market, the neighbourhood, and your own preferences in that first year that you cannot know in advance.
When buying makes sense: You're genuinely settling for 5+ years, you've lived in the country long enough to know the market, you have a deposit that won't leave you financially exposed, and you've confirmed there are no visa or residency complications with property ownership in that country.
Foreign Ownership Rules by Country
Not all property rights are equal for foreigners. Before you fall in love with a house, confirm what you can legally own.
In countries that restrict foreign ownership (Thailand, Indonesia, Vietnam), it's common to see properties held in the name of a local national on behalf of a foreigner — a "nominee" arrangement. These are generally illegal and entirely insecure. The "owner" on paper has full legal rights. There is no enforceable agreement that protects the foreign buyer. Several expats have lost everything this way. Only use legal ownership structures: leasehold, freehold in permitted categories, or fideicomiso (Mexico).
The Buying Process — Step by Step
The broad shape of a property purchase is similar worldwide: find a property, make an offer, do due diligence, sign a preliminary contract, complete financing, sign the final transfer deed, register. The details vary enormously by country — but the key stages are:
Get your legal identity sorted first
Before you can buy, you need a local tax ID. In Spain that's a NIE, in Portugal a NIF, in Italy a Codice Fiscale, in Mexico an RFC. Without this, you cannot sign contracts, open a bank account, or complete a transfer. Obtaining it typically takes 1–6 weeks depending on the country and whether you're present or applying remotely via power of attorney.
Engage a local, independent lawyer
Not the agent's recommended lawyer — your own. The agent works for the seller. The notary (where applicable) is neutral, not your advocate. You need a lawyer who represents only you, who can conduct title searches, check for debts or liens attached to the property, verify planning permissions, and flag issues before you're committed. Budget €1,000–€3,000 for this service — it's the best money you'll spend.
Make an offer and pay a reservation deposit
In most markets, an accepted offer is followed by a small reservation deposit (typically €2,000–€10,000) that takes the property off the market while due diligence is conducted. This deposit is typically forfeited if you pull out without cause. Make sure any reservation agreement specifies clearly what happens if due diligence reveals issues.
Conduct due diligence
Your lawyer should verify: clean title (no outstanding mortgages, liens, or debts that transfer with the property), correct planning status (the property is registered as it physically exists), no community debt (for apartments), up-to-date local taxes, no heritage or coastal restrictions on development, and that the seller actually has the right to sell. This takes 2–6 weeks. Do not skip or rush this stage.
Sign the preliminary contract (promissory / compraventa)
This is the binding private contract between buyer and seller — before the public notarial deed. Typically requires a 10% deposit (sometimes more). If the seller pulls out after this, they must return double the deposit. If you pull out, you forfeit the deposit. Ensure your lawyer reviews every clause — especially conditions precedent (mortgage approval, survey results) that let you exit cleanly if needed.
Arrange financing and transfer funds
If you're using a mortgage, this stage involves finalising the mortgage offer and instructing the lender to prepare funds. If you're buying cash, arrange the international transfer well in advance — large international wires take 2–5 business days, banks may query large transfers, and exchange rates need to be locked in (see currency section below).
Sign the escritura / acte / deed before a notary
The final public deed is signed in front of a notary who authenticates the transaction. The notary is a state official — they verify identity, ensure the contract is legal, and calculate the taxes due. Balance of funds is paid at or just before this stage. In many countries you can sign via power of attorney if you cannot be present in person.
Register ownership and pay taxes
After signing, your lawyer or the notary registers the transfer at the Land Registry and pays the applicable transfer taxes on your behalf. Until registration is complete, you are legally vulnerable — ensure your lawyer tracks and confirms registration, which can take days to weeks depending on the country.
Purchase Costs by Country
The purchase price is not what you pay. Transaction costs — transfer taxes, notary fees, legal fees, agent commissions, and registration — routinely add 8–15% on top. Budget for these from day one.
Getting a Mortgage as a Non-Resident
Mortgages are available to foreign buyers in most Western European countries — but on less favourable terms than you'd get as a resident, and with more documentation required.
What Lenders Require from Foreign Buyers
- Lower LTV: Non-residents typically get 60–70% LTV versus 80–90% for residents. You need a larger deposit.
- Proof of income: 2–3 years of tax returns, payslips, or company accounts if self-employed. Lenders want predictable income from a recognised source.
- Debt-to-income: Monthly mortgage payment (plus all existing debts) typically must not exceed 30–35% of your gross monthly income.
- Local bank account: Most lenders require a local account for direct debits before completing the mortgage — open this early.
- Property valuation: The lender will commission their own valuation, which may come in below the purchase price — you pay the difference.
Mortgage Availability by Country
| Country | Non-resident mortgage? | Typical LTV | Notes |
|---|---|---|---|
| 🇵🇹 Portugal | Yes | 60–70% | Available from Portuguese banks (Millennium BCP, Novo Banco, Santander). NIF required. EU applicants preferred. |
| 🇪🇸 Spain | Yes | 60–70% | CaixaBank, Sabadell, BBVA all have non-resident products. NIE required. Process takes 4–8 weeks. |
| 🇫🇷 France | Yes | 70–80% | French banks and international brokers (e.g. BNP Paribas Fortis, HSBC Expat). Life insurance (assurance vie) often required alongside. |
| 🇬🇷 Greece | Limited | 50–60% | Non-resident mortgages exist but are uncommon. Most foreign buyers purchase cash. Greek banks are conservative post-2008 crisis. |
| 🇹🇭 Thailand | Effectively No | — | Thai banks do not lend to foreigners for property purchases. Some developer financing exists for new builds. Most foreign buyers pay cash. |
| 🇲🇽 Mexico | Difficult | 50–65% | Available but expensive (rates 10–12% in MXN). US buyers sometimes use home equity loans or SOFOM lenders. Developer financing common in resort areas. |
| 🇦🇪 UAE | Yes | 50–75% | Non-residents: up to 50% LTV. Residents: up to 75%. Fixed-rate periods typically 1–5 years then variable. Rates around 4–5% as of 2025. |
An international mortgage broker who specialises in expat buyers can save significant time and often access lenders you can't approach directly. They understand the documentation requirements, know which lenders are most flexible with foreign income sources, and can manage the application in a language you don't speak. Fees are typically 0.5–1% of the loan amount.
Currency Risk — The Hidden Cost Most Buyers Ignore
If you're earning in one currency and buying in another, exchange rate movement between the day you agree a price and the day you complete can cost — or save — you tens of thousands. A 5% move on a €400,000 purchase is €20,000. This isn't theoretical: sterling/euro moved over 10% in the year following the Brexit referendum. USD/EUR moved 15% in 2022.
Your Options
- Spot transaction: Convert at the current rate on the day you need to pay. Simple, but exposes you fully to rate movement from the day you agreed the price.
- Forward contract: Lock in today's exchange rate for a transaction up to 2 years in the future. You pay a small deposit (typically 5–10%) and the rest on the agreed date. Eliminates uncertainty. Most FX specialists offer this.
- Limit order: Set a target rate and your transfer executes automatically if the market reaches it. Useful if you're not in a rush and want to try to beat the current rate.
Use a specialist FX provider (Wise, OFX, Moneycorp, TorFX, Currency Solutions) rather than a bank for large property transfers. Banks typically add 2–4% to the mid-market rate on large international transfers. On a €400,000 purchase, that's €8,000–16,000 in unnecessary costs.
Practical approach: Once you've exchanged contracts (committed to buy), take out a forward contract for the balance due at completion. This removes currency risk from the equation and lets you budget precisely. The forward contract deposit typically counts as part of the payment anyway.
Buying Remotely — Power of Attorney
You don't have to be physically present to buy property in most countries. A notarised power of attorney (POA) authorises another person — typically your lawyer — to sign documents and complete the transaction on your behalf.
In practice: you sign a POA in your home country (often at the destination country's consulate or before a local notary with an apostille), and your lawyer in the destination country handles everything from the preliminary contract through to the final deed and registration.
Remote purchases are common and legally secure when done properly — particularly in Spain, Portugal, France, Mexico, and Greece. The key is ensuring:
- The POA is specific (identifies the property and the transaction) rather than a blanket general POA
- Your lawyer is someone you've vetted independently — not a referral from the agent or developer
- You review the preliminary contract yourself before authorising the lawyer to sign the final deed
- You visit the property in person at some point before committing — photos and video calls are not a substitute for standing in the building
Tax Implications of Owning Property Abroad
Owning foreign property creates ongoing tax obligations in multiple jurisdictions. Plan for all of these before buying.
Annual Property Taxes
Every country taxes property ownership. Spain charges IBI (local rates) typically 0.4–1.1% of the cadastral value annually. Portugal charges IMI (0.3–0.45% for urban property). France has taxe foncière and used to have taxe d'habitation (largely abolished). Thailand has no annual property tax for land or condominiums. UAE has no annual property tax.
Rental Income
If you rent your property out while you're not using it — even short-term on Airbnb — that rental income is typically taxable in the country where the property is located, and may also need to be declared in your home country. Non-resident landlords in Spain, Portugal, and France are taxed at a flat non-resident rate (19–25% depending on EU vs non-EU status) on gross or net rental income.
Capital Gains on Sale
When you sell, capital gains tax applies in the country where the property is located. Spain charges 19–28% on the gain for non-residents. Portugal charges 28% on gains for non-residents. France: 19% + social charges (17.2%) = 36.2%, though this reduces with years held. Many countries have a principal residence exemption — but it typically only applies if you were tax resident there. If you were not a resident, you'll likely pay the full non-resident capital gains rate regardless of how long you held the property.
Inheritance
Foreign property sits in the estate of whatever country it's located in for local inheritance tax purposes. Spain has complex regional inheritance tax (some regions are generous, others brutal). France has an inheritance tax that applies to French-based assets regardless of where the heirs live. Portugal applies no inheritance tax between close family, but a 10% stamp duty on transfers to others. Get advice on this before buying if estate planning matters to your situation.
Common Mistakes
The agent's "preferred lawyer" has a conflict of interest. They earn repeat business from the agent, not from protecting you. Always find and instruct your own independent lawyer.
In Spain and several other countries, outstanding mortgage debt, unpaid community fees, and even local tax arrears can transfer to the new owner with the property. A title search by your lawyer catches these — skipping due diligence does not.
Off-plan (buying before construction completes) can offer lower prices, but exposes you to developer insolvency, delays, and specification changes. Ensure stage payments are held in an escrow account and there's a bank guarantee covering your deposits.
Banks charge 2–4% over mid-market on international transfers. On a €300,000 purchase, that's €6,000–12,000 wasted. Use an FX specialist (OFX, Moneycorp, Wise for smaller amounts) every time.
Budgeting only for the listed price is one of the most common mistakes. In Spain, 12% on top of the purchase price is normal. In France, 10%. Budget for transaction costs before you even start viewing.
What you want from a property changes substantially once you've actually lived in a country for a year. Neighbourhood knowledge, lifestyle habits, and commute patterns you didn't anticipate all shift your ideal location. Rent first.
Pre-Purchase Checklist
- Confirm foreign ownership rules for your target country and property type
- Obtain your local tax ID (NIE / NIF / Codice Fiscale etc.) before starting serious search
- Open a local bank account — required for mortgage direct debit and some transfer requirements
- Engage your own independent lawyer (not the agent's referral) before making any offer
- Budget total purchase costs at 8–15% of the purchase price on top
- If using a mortgage: get an agreement in principle before making an offer
- Set up a forward FX contract once you've exchanged on a specific property
- Instruct your lawyer to conduct a full title search and check for attached debts
- Verify planning status — that the property is registered as it physically exists
- For apartments: request the community of owners meeting minutes and check for outstanding disputes or major planned costs
- For off-plan: confirm stage payments are protected by bank guarantee or escrow
- Get independent structural survey / valuation (separate from lender's valuation)
- Review the preliminary contract with your lawyer before signing anything
- Understand the ongoing annual tax obligations (property tax, rental income tax if applicable)
- Update your will to cover the new foreign asset and confirm inheritance tax position