From fees and taxes to European regulations, moving abroad can be overwhelming, but we’re here to help.
Europe is a popular location for foreign buyers, with an attractive real estate market and plenty of investment opportunities.
We take a look at exactly how to buy property in Europe as an American. We’ll cover prices, fees, and some of the best cities to check out – everything you need to know.
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What’s the property market like in Europe?
The euro has dropped in value in recent years, making Europe’s property market more enticing and affordable for American buyers.¹
House prices in European countries continue to fluctuate. In 2023, average house prices in the eurozone dipped by 1.1% compared to the year before, but house prices in the European Union climbed by 0.2%.²
London has one of the best real estate markets in Europe, including desirable property investment opportunities for foreigners.³
Can an American buy property in Europe?
So, can Americans buy property in Europe? Simply put, yes – but each European country will have its own regulations.
Whether you’re looking for a holiday home or you want to invest in citizenship abroad, let’s take a closer look at buying a home in Europe.
What are the legal requirements of buying a property in Europe?
Different European countries have different laws and restrictions for US citizens looking to purchase property.
Many countries let you buy property without being a citizen, such as France, Italy, and Portugal.⁴ However, you’ll need to be a resident to buy property in Liechtenstein.⁵
Some countries require you to receive approval from the local authorities before you can legally purchase property, including:
- Hungary
- Poland
- Denmark
- Malta⁵
In the UK, you’ll need to get the right type of expat mortgage to purchase real estate, depending on whether you want to rent out or live in your new home.⁴
You’ll also need to comply with anti-money laundering regulations, and you may need to use a solicitor to complete your purchase.
In Germany, you’ll need a notary to complete your sale, and you’ll also need to pay notary fees and a property purchase tax.¹
Speak to a local legal advisor to understand any requirements in your chosen European country.
Can Americans buy land in Europe?
Americans can buy land in Europe, but there may be some limitations. You may need government authorization to buy land in certain countries, such as:
- Italy
- Czechia
- Andorra
- Finland
- Cyprus⁶
In France, non-EU citizens need government approval for agricultural land or land that exceeds a certain size or value.⁶
In countries like Finland and Greece, you may also need a permit to buy land in some geographical or military areas.⁶
Can you buy property in Europe and get residency?
Buying property in Europe could help you qualify for residency in that country. Getting residency in an EU country can be the first step to full citizenship rights, letting you travel freely around the EU without a visa.
By buying property, you’re investing in the local economy, and this often counts towards residency or citizenship.
Countries like Cyprus and Malta have specific citizenship by investment programs, but owning property can be factored into future residence permit applications in many European locations.⁷
How to buy property in Europe as an American: step by step
We’ve put together a step-by-step guide to buying property in Europe as an American citizen.
Remember, the exact process will differ depending on where you want to purchase your property.
Research your options
First, you need to research your options. What kind of property do you want to buy? Where is your ideal location?
You’ll need to think about the cost of moving to Europe and whether you can visit your location before buying a property.
House hunting from abroad can be tricky, so it can help to work with a real estate agent that specializes in foreign property. You may also want to work with a mortgage broker or legal advisor in your country of choice.
Every country has different financial and legal requirements, and some countries have strict rules about who can help you complete your property purchase.
Look into any permits, restrictions, or costs
You’ll need to look into any necessary permits, fees, and legal restrictions before making an offer on a home.
In some countries, you may need government permission before going ahead with your plans, and some European countries charge additional fees to foreign buyers.
In the UK, you’ll pay Stamp Duty on properties over 250,000 GBP. First-time buyers can access a reduced fee, but you won’t qualify for this if you’ve owned property in the US or elsewhere.⁸
You’ll also need a preliminary mortgage offer, known as an Agreement in Principle or Decision in Principle. This is the equivalent of a pre-approval letter in the US.
Make an offer
Your realtor can help you understand how to make a sensible offer for your European home. Some international banks may offer international mortgages or you can access financing in your chosen country.
There may be a cooling-off period after your offer is accepted. During this time, you can typically withdraw from the sale without legal or financial ramifications.
Do your due diligence
Make sure to do your due diligence. Conduct property surveys to understand the structure and condition of your new home.
This can help flag any problems like mold or electrical issues before you pay your deposit and complete the sale.
Sign the contract and pay your deposit
When and how you sign your contract will depend on where you want to buy property. You’ll also need to make any funds available for the sale. Make sure to leave plenty of time for your deposit payment to be processed.
In the UK, signing your contract and paying your deposit is known as completion day. Similar to closing in the US, all parties must agree to complete the sale on the same day.
Complete the sale
In some countries, you may need to complete additional steps before everything is sorted, such as signing the deed of sale or picking up the keys for your new property.
Speak to your realtor or mortgage broker for further advice and support.
Buying property in Europe: costs, taxes, and fees
It’s important to think about the cost of moving to Europe from the US. As well as your deposit, you’ll also need to think about surveyance fees, legal fees, and real estate commission costs – the charges can add up.
There are a few different taxes and fees to consider, including:
- stamp duties
- transfer taxes or conveyance taxes
- annual property taxes
- withholding taxes (if you earn rental income from your property)⁹
You may also need to declare your foreign property for tax purposes. For example, a Report of Foreign Bank Accounts (FBAR) requires US citizens to declare money held in certain overseas financial accounts.⁹
How much is an apartment in Europe?
Let’s take a look at roughly how much it costs to buy an apartment in Europe, using 5 popular European city locations for Americans and expats.
| Location | Price (sqft) in city center | Price (sqft) outside city center |
|---|---|---|
| London, UK¹⁰ | 1,601.13 USD | 950.48 USD |
| Paris, France¹¹ | 1,174.14 USD | 854.64 USD |
| Milan, Italy¹¹ | 860.48 USD | 454.12 USD |
| Barcelona, Spain¹² | 560.89 USD | 382.85 USD |
| Lisbon, Portugal¹² | 632.37 USD | 318.67 USD |
| Wondering how much that would cost in EUR? Check out this handy conversion calculator |
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What kind of taxes and fees will you need to pay?
Let’s take a look at some common fees and taxes for Americans moving from the US to Europe.
| Fee | Amount (%) |
|---|---|
| Real estate agency commission rates | Roughly 2% to 6%, depending on the country¹³ |
| Mortgage broker fees | Up to 1% or a flat fee¹⁴ |
| Notary fees | Countries like Spain charge notary fees for buying property. This is typically 1% to 2.5%¹⁵ |
| Exchange rate | Variable Many banks charge a markup on the standard mid-market exchange rate, which can add to your costs. Get the most EUR from your USD by using Wise, a cheap and transparent way to move your money abroad. Save on international payments |
Buying property abroad? Send money the hassle-free way with Wise
Now that we covered all the basic costs of purchasing a home in Europe, the only question left is: how to send money to pay for your property overseas?
Wise offers you a quick, secure and transparent way of sending money to Europe. You get the mid-market exchange rate for your payments and see how much it’s charged for the transfer before sending the money from your bank.
With the Wise Account you can also hold 40+ currencies, spend money in 150+ countries, and receive like a local in 9 different currencies.
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How can you find real estate in Europe?
Real estate agencies like Knight Frank® or Fine & Country® can help you understand how to buy a house in Europe.
You can also use resources like Global Listings® to conduct research and browse potential properties. You should only work with certified professionals.
Types of property in Europe
Common property types in Europe include:
- houses (semi-detached, detached, and terraced)
- apartments
- flats
- cottages
- bungalows
The best property type for you can depend on which country or city you choose, if you plan on living there yourself, or if you want to rent your home out to others.
Houses are common in EU member states like Ireland, the Netherlands, and Croatia, whereas flats tend to be more popular in locations like Spain, Germany, and Latvia.¹⁶
How to avoid scams when buying property abroad
You need to keep an eye out for scams. If you can, look at your new home in person before making an offer and complete all the necessary checks to ensure nothing gets missed.
Don’t give out your personal, legal, or financial information without confirmation. You should only work with reputable banks, lawyers, realtors, advisors, and mortgage brokers to receive the best advice and support.
If you work with an international realtor you may get access to translation services while you house hunt, which can help you avoid scams in your chosen country.
What’s the best city to buy property in Europe?
There are lots of great locations for American buyers in Europe. Let’s take a closer look at where to buy property in Europe.
London
London is a vibrant European city for foreigners, with museums, galleries, pubs, bars, restaurants, and historical sights to check out.
It’s well-connected by rail to other UK cities like Manchester and Edinburgh, as well as by air to the US.
However, the cost of living in Europe can be high – and London is one of the continent’s most expensive cities.
Paris
Paris is renowned for its incredible museums and tourist spots, and real estate investors can make money from rental income year-round.
Apartments are a common investment for foreigners and expats, with a booming housing market and a good standard of living across Paris. Learn more about buying property in France here.
Milan
Italy is a beautiful country, rich in history and culture, and Milan is a popular city for foreigners moving abroad. The city has an excellent standard of living, with a diverse and welcoming population.
House values in Milan are expected to increase in the next couple of years, making the city a good investment for US citizens buying property overseas.¹ Learn more about buying property in Italy here.
Barcelona
Barcelona is one of the most expensive cities in Spain, but it’s got a lot to offer. You can visit one of the city’s many museums or head to the beach.
Barcelona is known for its sunny weather and delicious food, giving Americans the opportunity to try out a dynamic Mediterranean way of life.
Apartments are popular in Barcelona, and there’s plenty of opportunity to rent out your property to tourists when you’re back in the US. Learn more about buying property in Spain here.
Lisbon
Lisbon is famous for its history, nature, and nightlife, with a low cost of living for foreigners and expats looking to explore Europe.
It’s relatively easy to get citizenship in Portugal. Once you’ve got an EU passport, you can travel and live in other EU member states without a visa. Learn more about buying property in Portugal here.
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Buying real estate in Europe can be daunting. You need to think about mortgages, fees, and finding the best place for you.
However, there are lots of benefits to purchasing foreign property, and cities like Barcelona offer a fresh new lifestyle and exciting global opportunities for Americans buying abroad.
Make sure to consult a local legal advisor or contact an international realtor before purchasing your first foreign property.
To start saving on international transactions in over 40 currencies, open a Wise account today.
Sources:
- Global Citizen Solutions - Can foreigners buy property in Europe?
- Euro News - The rise and fall of Europe's property market in 2023
- Statista - Real estate prospects in Europe 2024
- International Citizens - Buying property abroad
- Tranio - European limitations on foreign property purchases
- Can Foreigners - Countries where foreigners can buy land
- Imperial Legal - How to get European residence by purchasing real estate
- The Portable Wife - Buying a house in the UK as an American
- Universal Tax Professionals - Buying and selling property abroad as an American
- Numbeo - Property prices: London
- Numbeo - Property prices: Milan and Paris
- Numbeo - Property prices: Lisbon and Barcelona
- Tranio - Real estate agency commission rates in different countries
- Unbiased - How much does a mortgage broker charge?
- Currencies Direct - Buying property in Spain
- Europa - Housing in Europe (2023)
Sources checked on 07.10.2024
*Please see terms of use and product availability for your region or visit Wise fees and pricing for the most up to date pricing and fee information. This publication is provided for general information purposes and does not constitute legal, tax or other professional advice from Wise Payments Limited or its subsidiaries and its affiliates, and it is not intended as a substitute for obtaining advice from a financial advisor or any other professional. We make no representations, warranties or guarantees, whether expressed or implied, that the content in the publication is accurate, complete or up to date.
