Can foreigners easily purchase luxury real estate in Europe?

The European luxury real estate market was valued at around $549–615 billion in 2025 and is growing at a rate of 4–5% per year. Forecasts predict it will reach $943 billion by 2034. Impressive scale, isn’t it? But what’s even more interesting is who is buying these properties.

In Spain, over 90% of luxury homes end up in the hands of foreigners. In Italy, their share in the premium segment is around 50-60%. Europe attracts capital from all over the world because it offers stability, quality of life, and (at least until recently) relatively transparent procedures. The problem is that 2023-2025 are years of rapid change. Portugal closed its Golden Visa program in October 2023. Spain raised the bar in 2025. Greece increased the minimum investment thresholds already in 2024. Regulatory pressure is mounting, as local communities complain about rising prices and a lack of housing for native residents.

“Yes, but with rules.”

Is it possible to buy a luxury property in Europe as a foreigner? Of course. Without any issues? Well, that depends. The rules of the game are changing, and it’s worth knowing exactly where you stand before your first visit to the notary.

Can foreigners easily purchase luxury real estate in Europe?

This is where a significant misconception in common perceptions begins. Many assume that the European Union has some unified regulation on this matter. It does not.

“There is no uniform EU rule regarding property ownership by foreigners.”

Property law remains a national competence, so each member state sets its own rules. That’s why buying a house in Spain can look completely different from a similar transaction in Poland or Austria.

EU, EEA, and the rest of the world

Citizens of the European Union, the European Economic Area, and Switzerland are usually treated as locals. Buying an apartment in Lisbon? The procedure is the same as for a Portuguese citizen. Sometimes you need to have a tax number, but that’s just a formality.

Citizens of third countries are a different story. The rule is: “yes, but with conditions.” In practice, this may mean a permit from local authorities or a reciprocity requirement. It depends on the country and sometimes on the region.

What makes the purchase difficult?

The easiest is to buy an apartment in the city center. It gets more difficult when:

• agricultural land (in many countries protected, permit or local address required)
• in border and military zones (strategic restrictions)
• areas of cultural or natural significance
• houses with a plot (because land = additional requirements)

Golden Visa, or residency programs for real estate investors have undergone significant changes in recent years. Portugal closed this pathway in 2023, and Spain will follow suit in 2025. Greece raised the thresholds in 2024: 400,000–800,000 EUR in popular locations, 250,000 EUR for building conversions. An important note: purchasing real estate does not automatically grant residency rights. That’s a separate matter.

Where is it easiest, where is it hardest?

Regulations can be quite confusing, so it’s worth knowing where you can handle formalities quickly and where you’ll face a bureaucratic marathon.

You can buy here most easily

Ireland, Portugal, the Netherlands, and Sweden do not impose any special barriers on foreigners (apart from standard notarial and tax requirements). Spain, Italy, France, and Germany are also quite open, although notarial formalities can take some time. Portugal ended the Golden Visa route for real estate in 2023, but purchasing property is still possible. In Greece, the GV program is still active, although the thresholds have risen sharply: 400,000–800,000 EUR in popular zones (250,000 EUR for buildings intended for adaptation). Spain closed its program in 2025.

More barriers and permits

Poland requires a permit from the Ministry of the Interior and Administration for non-EU citizens to purchase houses and land (apartments are often exempt). Hungary and Croatia also use a permit system (Croatia additionally checks for reciprocity). Denmark requires 5 years of residency or ministerial approval. Switzerland under Lex Koller restricts non-residents from buying holiday homes. Malta, Andorra, and Liechtenstein often require residency status.

Outside the EU

Montenegro and Albania are open to apartments and houses (for land, sometimes it’s better to use a company). Serbia operates on the principle of reciprocity, while Turkey is generally open, with exceptions for certain regions. Always check whether reciprocity also applies to your country.

What does the transaction look like?

Buying a luxury property in Europe is a bit like putting together a puzzle, where each country has its own unique set of pieces. It’s nothing to be afraid of, but it’s worth knowing what happens step by step. And without local experts who know the system inside out, you might suddenly get stuck at a stage you didn’t even know existed.

From NIF to registration in the register

Let’s start from the beginning. Before you sign anything at all, you need a local tax identification number. In Spain or Portugal, this is the NIF; in other countries, it goes by different names, but the point is the same: you must exist in the fiscal system. Some people also arrange a power of attorney with a notary (useful if you don’t plan to be physically present at every stage).

And this is where AML comes in, meaning the verification of identity and the origin of funds. Proof of funds is not a mere formality. Banks and notaries genuinely want to know where your money comes from. Statements, contracts, source documents—everything must match.

Due diligence and finalization at the notary

Now comes the property inspection. The lawyer checks the title deed, any encumbrances, whether the plot has any unusual provisions, and if all building permits are in order. In most countries, this requires certified translations, sometimes an apostille (depending on your citizenship). This is not a quick process.

Finalization? Usually, there’s first a preliminary agreement (with a deposit), then the notarial deed and registration. For buyers from outside the EU, in some places a purchase permit is also required, which you must have before signing the deed. Payments are made by bank transfer with documented origin. In Montenegro, for example, larger transactions must be cashless—points for transparency.

Transactional lawyer, notary, surveyor, sometimes an appraiser. Working with local specialists truly minimizes risk. They know where the system has its weak points.

Costs, taxes, and compliance

When purchasing a luxury property in Europe, you quickly discover that the transaction price is just the beginning of your expenses. Additional costs can reach as much as 10-15% of the property value, and regulatory obligations can surprise even experienced investors.

Transaction and ongoing costs

When making a purchase, there are a few items you simply can’t skip:

Then you have fixed costs: property tax (sometimes surprisingly high for large plots), operating fees, and maintenance charges. In Spain, non-residents must file the Modelo 210 declaration, even if they do not rent out the property. Such reporting obligations simply cannot be overlooked.

Regulatory risks in luxury

The premium segment brings specific limitations:

• bans on short-term rentals in areas covered by residency programs
• limits in tourist cantons (Switzerland, Lex Koller)
• border zones, military areas, agricultural zones with a ban for foreigners
• conservation protection (renovations can cost a fortune)
• local tourist or zone fees

Compliance (AML) and ownership structures

Banks and notaries will investigate the origin of funds, while CRS and FATCA will automatically exchange data with the tax authorities. Some try to bypass acquisition bans through corporate structures, which can be effective, but leads to tax and reporting consequences. Do not proceed without local legal and tax advisors. Seriously, you’re saving yourself from potential problems worth far more than their fee.

There are boundaries, but they can be crossed

Legal regulations may seem complicated, but most European countries really want your money. Switzerland sets high capital requirements, Greece requires a local bank account, France asks for proof of funds origin. It may sound bureaucratic, but it’s more of a standard procedure than an insurmountable barrier. In practice, most foreigners buy without major issues if they have proper legal support and patience for paperwork.

The key is preparation. Find a good local lawyer, prepare your documents in advance, and allow yourself more time than you think you’ll need. No one says it will be as easy as buying in your hometown, but European luxury is within reach for anyone who approaches the matter seriously.

Sometimes these extra steps even turn out to be beneficial. It’s better to double-check everything than to regret a hasty decision worth millions.

Patt Y78

editorial staff