Have you ever considered buying property in Europe? Perhaps you’ve wondered where the best place to do that might be. Real estate is one secure asset you may invest in to gradually increase your wealth, and to guarantee the success of your real estate investment you’ll need to choose a place that provides the greatest value for your investment without going over budget.
While Europe’s housing market value has been increasing over the past decade, it has been seeing more and more interest from foreign investors in recent times, especially from American buyers. With the dollar soaring and the Euro dropping in value due to the Ukrainian conflict, Europe’s housing market has become more affordable to international investors all around the world.
Although both residential and commercial European real estate market prices still remain high in some places, foreign investors continue to find properties in places with strong economic growth and low inflation rates. The following is a list of the top locations for foreigners looking to purchase property in Europe, regardless of whether they are first-time buyers investing in the European real estate market, or are looking to increase and diversify their portfolio. There is certainly no shortage of European real estate, so you are bound to find your next dream house.
Can foreigners buy property in Europe?
Foreigners are allowed to purchase property in Europe, but each country has its own specific regulations and requirements that must be followed. In the United Kingdom, there are no restrictions on foreigners buying property, but they must comply with anti-money laundering regulations and usually involve a solicitor in the process.
In Germany, foreigners can also purchase property freely, with the transaction requiring a notary and additional costs like notary fees and a property purchase tax.
In France, while there are no restrictions on foreign property buyers, the process is legally complex and involves significant transaction fees. Spain allows foreigners to buy property, but they need a tax identification number (NIE) and must pay a property transfer tax and VAT for new homes.
Similarly, in Italy, foreigners need a fiscal code (codice fiscale) and must cover various taxes and fees including registration and notary fees.
Portugal also requires foreigners to have a fiscal number, with additional costs including transfer tax, stamp duty, and legal fees. In Greece, foreigners need a tax registry number and may face restrictions on buying property near military areas, with additional costs like transfer tax and legal fees.
Each country’s process involves various legal and financial steps, so it is advisable for potential buyers to seek guidance from local real estate experts and legal advisors.
The Best Places to Buy Property in Europe
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 changes set certain limitations on foreigners amassing housing in Europe’s top destination for leisure and relaxation, those interested in buying property in Portugal are still capable of doing 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.
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 not only known for its sports, cultural music events, and art but for offering some of the most competitive resale housing prices as well.
Due to the area’s attractiveness, property values are predicted to rise over the coming years. However, with house prices in Europe dropping against the soaring 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.
Valletta, Malta
The capital city of Malta, Valletta, is one of the world’s oldest cities and is only a short flight from the majority 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.
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 to purchase property in the Republic are actually where most people choose to retire in Cyprus 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 foreigners for permanent residence in Cyprus.
Paris, France
Michelin-starred restaurants, world-class museums, a ton of 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.
Davos, Switzerland
Travelers who are seeking a delightful journey across beautiful terrain are becoming more and more interested in Davos. Many people come here for the opportunity to breathe fresh air, discover breathtaking pathways, and take in all the splendor this alpine wonderland has to offer.
One of the best health resorts in Switzerland is Davos, which serves as a significant convention and sporting venue. Locals in Davos are conscious of the importance of nature for their health and well-being.
Seeing as people are growing more conscious of the significance of having a mindful approach, as well as the influence nature has on our lives, asset prices in Alpine cities are anticipated to rise continuously.
Foreigners aren’t allowed to purchase residential property in Switzerland, but if they work there, they can purchase a holiday home or a second residence. Commercial real estate can be purchased without restrictions by non-residents as long as it is utilized as an investment.
Travelers who are seeking a delightful journey across beautiful terrain are becoming more and more interested in Davos. Many people come here for the opportunity to breathe fresh air, discover breathtaking pathways, and take in all the splendor this alpine wonderland has to offer.
One of the best health resorts in Switzerland is Davos, which serves as a significant convention and sporting venue. Locals in Davos are conscious of the importance of nature for their health and well-being.
Seeing as people are growing more conscious of the significance of having a mindful approach, as well as the influence nature has on our lives, asset prices in Alpine cities are anticipated to rise continuously.
Foreigners aren’t allowed to purchase residential property in Switzerland, but if they work there, they can purchase a holiday home or a second residence. Real estate for commercial purposes can be purchased without restrictions by non-residents as long as it is utilized as an investment.
Milan, Italy
Italy is a stunning Mediterranean country with a fascinating culture and rich history, a wonderful environment, and delicious food. Milan is among the most livable major cities in Italy when taking into account 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. The acquisition must be authorized by an international agreement, and the funds must be properly documented. However, there are no restrictions on what EU citizens can buy.
Krakow, Poland
One of Europe’s best-kept secrets in regard to 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.
Berlin, Germany
Berlin, Germany’s capital, is a dynamic metropolis known for its rich history, cultural diversity, and thriving arts scene. Iconic landmarks like the Brandenburg Gate and Berlin Wall reflect its storied past. The city exudes multicultural creativity, offering a blend of historic sites, contemporary architecture, and a nightlife that caters to almost all tastes.
Buying property in Berlin offers an attractive investment opportunity. The city’s real estate market is diverse, with options ranging from historic apartments to modern developments. Property prices are relatively lower compared to other major European cities, but they’ve been steadily rising in recent years.
Foreigners face no restrictions on property ownership, and neighborhoods like Mitte, Prenzlauer Berg, and Kreuzberg are hugely popular. Engaging a local real estate agent is advisable for navigating legalities and understanding market trends.
Additionally, Berlin’s robust rental market offers potential for income generation, making it an appealing choice for investors and homebuyers alike.
Portugal’s Golden Visa Changes Affect Buying Property
The Portugal Golden Visa program stands out as an attractive option for individuals seeking residency in the country through strategic investments. The program grants qualifying investors and their family members the right to live, work, and study in Portugal and permits visa-free travel in the European Union and Europe’s Schengen Area.
Previously, as with many European countries, it was possible to get residency in Portugal by purchasing real estate. However, recent changes in legislation have ruled that out for potential property buyers. These changes come in the form of the Mais Habitaçāo (More Housing) bill.
The aim of the Mais Habitaçāo bill is to increase Portugal’s supply of rental housing, combat real estate speculation, and restrict rent increases. Since the bill was announced in February 2023, it promised significant changes to the highly successful Golden Visa scheme.
On 7 October 2023, the Mais Habitaçāo bill officially came into effect. The legislation means that, for Golden Visa applicants, real estate will no longer be part of the suite of available investment options.
Simply put, it is no longer possible to make a Golden Visa application with a real estate investment. But that doesn’t mean you can’t buy property in Portugal. There are still plenty of options available, and real estate investments are always a smart move.
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 property 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.
