Guide · Basics

Buying property abroad: process, costs and pitfalls

As of November 2026 · about 8 minutes' read

A house by the sea in Spain, a country house in the south of France, a farm in Denmark: many people dream of it for years and then shy away from buying because everything feels unfamiliar. The good news is that in most European countries the process is similar to the German one. There is a preliminary contract, a notary or lawyer and a land register. The differences lie in the details, and that is exactly where the expensive mistakes happen.

Before the search: what do you really want?

Many people ask the most important question too late: what is the house for? A holiday home for four weeks a year needs different features from a home for your retirement or a property you want to let. This decides which region suits you, how good the connection to an airport needs to be and whether a place is still alive in winter.

• Use: Use it yourself, let it or live there permanently? In many popular regions, letting to holidaymakers needs a permit or is restricted.
• Getting there: How long does the journey from home take, by car or by plane? A house you can reach twice a year is a house you will only use twice a year.
• Total budget: Purchase price plus purchase costs, renovation, ongoing taxes, insurance and someone who keeps an eye on things while you are away.
• Legal limits: Not every country lets foreigners buy freely. In Denmark, for example, Germans who do not live there are generally not allowed to buy a holiday home.

The search: portals, agents, viewings

Every country has its own property portals: in France, for example, SeLoger and Leboncoin, in Spain idealista and Fotocasa, in Denmark Boligsiden and Boliga. On top of that there are thousands of estate agents' websites that by no means list everything on the big portals. If you are serious about searching, you will be combing through several sites in foreign languages, with different filters and terms.

A local agent knows the location, the prices and the quirks of the area. Check whether they are registered (in France they need a “carte professionnelle”) and who pays their commission. In France and Spain it is usually the seller, but it is built into the price.

Allow enough time for viewings and drive around the area at different times of day. Check whether what the listing says matches reality: living space, plot, access, water supply and sewage connection.

The purchase in five steps

The terms differ, but the process is similar in France, Spain and many other European countries:

1. OfferNegotiate the price, agree in writing
2. ChecksLand registry, permits, reports
3. Preliminary contractFR: compromis · ES: arras, with deposit
4. NotaryDeed, balance paid, keys handed over
5. RegistrationLand registry

1. Offer and agreement. You make an offer, often below the asking price. Negotiating is normal.
2. Checks. Before you sign, you check the land register, charges on the property, building permits and outstanding fees. In Spain the land register extract is called “Nota Simple”; in France the seller provides a package of survey reports (“diagnostics”).
3. Preliminary contract with deposit. In France this is the “compromis de vente”, usually with a deposit of 5 to 10 per cent; in Spain the “contrato de arras”, usually with 10 per cent. If you pull out afterwards without an agreed reason, you will generally lose the deposit.
4. Signing at the notary. The purchase contract is signed before the notary, the rest of the price is paid and you get the keys.
5. Registration. The purchase is entered in the land register or property register. Only then are you legally secure as the owner.

Important: a notary abroad is neutral and does not automatically represent your interests. That is why many buyers hire their own independent lawyer who speaks German and checks the documents before the preliminary contract.

Purchase costs: what to expect

In many countries the costs on top of the purchase price are higher than in Germany. A rough guide:

The purchase cost calculator works it out in euros for your price.

On top of this come costs for a lawyer, translations, surveys and, if needed, financing. Also plan for ongoing costs: property tax, waste charges, insurance and, in Spain, sometimes the community fees of a residential complex. More on this in the article Costs and taxes for a holiday home abroad.

Financing

German banks are reluctant to finance property abroad, because it is hard for them to use a property abroad as security. Two routes are common:

• A loan in the country where you buy. Spanish and French banks also give mortgages to foreigners, but usually with a lower loan-to-value ratio, around 60 to 70 per cent of the purchase price.
• Borrowing against property in Germany. If you own a property in Germany that is fully or partly paid off, you can borrow against it and buy abroad in cash. This is often cheaper and simpler.

Sort out the financing before you sign the preliminary contract, and have a financing clause included. Otherwise you risk losing the deposit if the loan falls through.

The most common mistakes

• Signing without your own checks. The preliminary contract is binding. Have it checked and translated beforehand.
• Overlooking unauthorised extensions. A pool, conservatory or guest house without planning permission is especially common in Spain and can become expensive.
• Buying the previous owner's debts along with the house. In Spain, property tax and community fees are partly tied to the property. Ask to see proof of payment.
• Underestimating ongoing costs. A house that stands empty for eleven months needs upkeep, checks and insurance.
• Forgetting inheritance law. Since 2015, within the EU, inheritance is in principle governed by the law of the country where you are habitually resident. Taxes on the inheritance can still be due abroad.

This article gives a general overview and is not a substitute for legal or tax advice. Tax rates and rules change. Check them with a lawyer or tax adviser in the country concerned before you buy.