10 challenges expats face buying property in Europe (and how to solve them)

A practical guide to the 10 most common challenges expats face when buying property in Europe, from legal checks and taxes to mortgages, visas, rentals, fraud risk, and AML paperwork.

For EU citizens, the right to buy property in any member state is protected at the bloc level. The European Union's "Buying a house - Your Europe" page confirms that EU citizens have the same rights as nationals when purchasing or selling property, including holiday homes. That's the good news.

The reality is more complicated. Property law, land registries, transaction taxes, notarial systems, and disclosure requirements remain entirely national. There is no single "EU buying process." France operates differently from Sweden. Spain differs from Portugal. Germany has its own timeline and fee structure. What stays consistent across most countries is the general pattern: an offer, a contract, due diligence and title checks, a notarial deed, and registration. What varies is almost everything else.

The challenges expats face when buying property in Europe fall into 10 recurring categories. Each one is solvable, if you know what's coming.

Challenge #1: The legal process is unfamiliar

The standard deal flow runs: offer accepted -> preliminary or private contract -> due diligence/title searches -> notarial deed -> land registry registration. Most European countries use notaries as public legal officers who authenticate the final deed. According to the CNUE (Notaries of Europe), notaries facilitate cross-border notarial transactions and advise buyers on the legal conditions of purchase and financing.

Notaries are not your personal advocate, though. Their role is to ensure the transaction is legally valid. For independent protection, particularly in countries where a separate buyer's lawyer is not standard, you may want to instruct your own legal counsel.

Before signing anything, request and verify:

• Current title extract showing the seller is the registered owner
• Encumbrance certificate confirming no outstanding charges or mortgages
• Building permits and usage licenses (especially critical for rural or older properties)
• Any relevant technical reports or energy certificates
• Planning/zoning status of the property

The Homestra buying property abroad resource hub includes country-specific process steps to help you understand the sequence before you tour.

Challenge #2: Costs and taxes you didn't budget for

Closing costs in Europe aren't just the property price. They break down into three buckets:

1. Transfer taxes or stamp duty (varies widely by country and sometimes by region)
2. Notary and land registry fees
3. VAT (applicable on new builds in many countries instead of transfer tax)

The French notaires website puts it plainly: buying costs for an older property in France run around 7-8% of the purchase price, compared to 2-3% for new builds. That 5-percentage-point gap can represent tens of thousands of euros on a mid-range property.

Sweden is a useful comparison: Homestra's own fritidshus (vacation home) buying guide notes that lagfart (title registration) carries a 1.5% stamp duty plus an 825 SEK administrative fee. Small in isolation, but buyers who don't account for it are caught off-guard at closing.

Beyond transaction costs, non-resident buyers face ongoing tax obligations: rental income is typically taxable in the country where the property sits, and capital gains on eventual sale are usually subject to local rules even if you're tax-resident elsewhere. For a country-specific overview of these rules, the EU's Your Europe portal on buying a house links to national tax authority resources. Budget at least 8-12% above the listed price to cover all-in acquisition costs, depending on the country.

Challenge #3: Mortgage friction for non-residents

Banks across Europe are more cautious with non-resident applicants. Common friction points include:

• Requiring a local tax identification number before processing any application
• Lower loan-to-value ratios for non-residents (often 60-70% versus 80-85% for residents)
• Income documentation that varies by country, sometimes needing certified translation
• Asset/source-of-wealth evidence that goes beyond standard payslips

The EU's Your Europe page notes that you may need a national tax number for mortgage formalities, and getting that number takes time, sometimes weeks. Start the mortgage process earlier than you think necessary. Assemble your documentation package (proof of income for two to three years, tax returns, bank statements, ID, employment contract or business accounts) before you make an offer.

Platforms like Homestra include country-specific financing guidance so you understand local bank requirements before you start viewing.

Challenge #4: Paperwork barriers, translations, sworn documents, apostilles

Foreign documents submitted to a notary, land registry, or bank in another country often need to be authenticated. This is where the Hague Apostille Convention 1961 comes in. Under this system, as documented by HCCH.net, Apostille certificates can only be issued and verified by designated Competent Authorities of contracting parties. An apostille confirms that the public official who signed a document (a notary, court clerk, government officer) is genuine.

The practical workflow:

1. Identify which documents the destination country's notary or bank requires
2. Obtain official copies from the issuing authority in your home country
3. Apply for an apostille from the designated Competent Authority (varies by document type and country)
4. Arrange sworn or certified translation into the local language if required

Common documents needing this treatment: birth certificates, marriage certificates, ID documents, powers of attorney, and employer letters. Start this process at least six to eight weeks before your expected closing date, delays here are a leading cause of transaction postponements.

Challenge #5: Energy Performance Certificates and building disclosure rules

Under EU Directive 2010/31/EU (the Energy Performance of Buildings Directive, recast), an Energy Performance Certificate (EPC) must be made available when a building is sold or rented out. Member states implement the details nationally, but the requirement to provide the EPC in connection with sale advertisements and to hand it over to buyers at closing is consistent across the bloc.

For expat buyers, this matters in two directions. As a buyer, you're entitled to see the current EPC before committing. The rating tells you how energy-efficient the building is and what renovations are recommended. A low rating isn't necessarily a deal-breaker, but it signals potential future costs, especially as EU member states progressively tighten minimum energy standards for buildings.

Ask the agent or seller these questions early:

• Is there a current EPC, and what is the rating?
• Are there recommended upgrades listed, and what's the estimated cost?
• Does the property comply with any local minimum energy standard required for rental?

For buyers considering a purchase with rental income potential, checking the EPC rating and any mandatory upgrade timeline is part of proper due diligence, not an afterthought. Properties listed on Homestra's platform include an energy label field to help buyers filter by efficiency rating from the outset.

Challenge #6: Owning property doesn't give you residency or Schengen rights

This is one of the most consistently misunderstood aspects of buying property in Europe. Owning a home in France, Spain, or Portugal does not grant you a residence permit or any extended visa rights. The Irish Immigration Service's FAQ guidance is explicit: residence permission depends on immigration status, not property ownership.

For Schengen-area countries, the rule is stark. The European Commission's Short-stay Calculator states: "If you are visiting any country in the Schengen Area, you are usually allowed to stay for a maximum of 90 days within any 180-day period." Owning a villa in the south of France doesn't change that count by a single day for non-EU citizens.

What to do instead:

• Check whether the country you're buying in offers an investor or "golden visa" route to residency (several EU countries have had such programs, though eligibility and terms change frequently)
• If long-term stay is the goal, investigate work, retirement, or family-based visa routes separately from the property purchase
• Treat the property purchase and the residency question as two entirely independent legal tracks

Challenge #7: Inheritance and cross-border succession risk

Buying property in another country means your estate may be subject to that country's succession laws when you die, even if you're resident elsewhere. EU Succession Regulation (EU) No 650/2012, documented on EUR-Lex as covering "jurisdiction and applicable law in succession matters and European Certificate of Succession," introduced a choice-of-law mechanism allowing EU residents to elect the law of their nationality to govern their succession. The European Certificate of Succession simplifies recognition of your estate's legal status across member states.

However, not all EU countries treat forced heirship rules the same way, and the interaction between your home-country will and a foreign property can produce unexpected outcomes for your heirs.

Actions to take before or shortly after purchase:

• Instruct a cross-border estate lawyer, not just a conveyancer
• Review whether your existing will covers foreign-held assets
• Consider whether a choice-of-law declaration under Regulation 650/2012 is appropriate for your situation
• Confirm that your beneficiaries understand where title documents are stored

Challenge #8: Short-term rental rules are tightening, and data reporting is expanding

Many expats buy with the assumption that short-term rental income will offset costs. That assumption needs to be stress-tested against local regulations before purchase, not after.

City-level restrictions on short-term rentals (Airbnb-style platforms) have tightened significantly across European cities. Registration requirements, caps on rental nights per year, and zoning restrictions on residential versus tourist use vary not just by country but by municipality. Barcelona, Amsterdam, Paris, and Lisbon have all introduced or expanded restrictions in recent years.

At the EU level, Regulation (EU) 2024/1028, titled "on data collection and sharing relating to short-term accommodation rental services" (EUR-Lex, April 11, 2024), means platforms are increasingly required to share rental activity data with national and local authorities. The practical effect: tax authorities and local regulators will have better visibility into rental income than they've had before.

Before buying with a rental income plan:

• Confirm the property's zoning permits short-term tourist accommodation
• Check whether local registration with a tourism authority is required
• Review the municipality's current night-cap or occupancy restrictions
• Understand how platform-reported data flows to local tax authorities under the new regulation

For France-specific considerations, the vacation home rental income and capital gains guide on Homestra covers the investment landscape in more detail.

Challenge #9: Cross-border fraud and deposit risk

Expat buyers operating remotely are more vulnerable to a specific set of risks. The most common patterns:

• Fake seller listings where someone claims ownership of a property they don't own
• Hacked email/payment instructions where a fraudster intercepts wire transfer details and substitutes their own account
• Misleading or fabricated listings on platforms outside established networks
• Rushed deposit requests before due diligence is complete

Prevention is straightforward but requires discipline:

• Always verify ownership through an independent title check before paying any deposit
• Confirm bank account details for any wire transfer by phone, using a number you sourced independently (not from the email chain)
• Never pay a deposit outside a notarial or legally recognized escrow process
• Keep a complete paper trail of every instruction received, every payment made
• Use a local lawyer to hold deposits in a client account where that's the local custom

Homestra's platform focuses on what to consider before buying property abroad, including how to approach due diligence as an international buyer before committing funds.

Challenge #10: AML/KYC checks take longer than expected

Under EU anti-money laundering directives, real estate agents, notaries, and lawyers are classified as "obliged entities" required to carry out customer due diligence (CDD) on all parties in a transaction. This means you'll be asked to prove your identity and the source of the funds you're using to buy.

For expat buyers, this can mean:

• Certified copies of passport and proof of address
• Bank statements showing the accumulation of funds over time
• Documentation of any large transfers (inheritance, business sale, investment redemption)
• A letter of explanation for fund sources that aren't simply salary savings

The time to prepare this pack is before you make an offer, not after. Incomplete AML documentation is a frequent cause of closing delays. If your funds come from multiple sources (a business sale, inheritance, and savings), prepare a clear written narrative supported by evidence for each source. Notaries and agents cannot proceed without completing this review, so delays here cascade directly into your closing timeline.

The expat buying playbook: a practical checklist

Before you start

• Define your use case: holiday home, long-term residence, or rental investment
• Choose your destination and pre-check mortgage feasibility for non-residents
• Gather your document package (passport, income proof, tax returns, bank statements)
• Start the apostille/translation process for documents needed abroad
• Engage a local lawyer or buyer's agent who works with international clients

During your search and offer stage

• Request the EPC and any available technical survey reports
• Verify title and check for encumbrances through the land registry
• Confirm zoning and permitted usage (especially if you plan to rent)
• Schedule a professional inspection before committing to a price

For rural properties, Homestra's Sweden fritidshus guide demonstrates the value of this step: the besiktning (inspection) for a Swedish vacation home specifically covers wells, septic systems, heating, and winterization, items that urban buyers routinely overlook. The kopekontrakt (purchase contract) typically involves a 10% deposit at signing.

Contract to closing

• Ensure all required documents have apostilles and certified translations in place
• Budget for full acquisition costs including transfer taxes, notary fees, and registration
• Verify payment instructions independently before any wire transfer
• Complete AML/KYC documentation requirements for the notary and any bank

After purchase

• Register ownership with the land registry if not done automatically by the notary
• Store all title documents, the EPC, and inspection reports securely
• Set up tax compliance in the destination country (rental income reporting, wealth tax if applicable)
• Review short-term rental registration requirements if you plan to let the property
• Update your will to account for the cross-border asset and consider a Regulation 650/2012 choice-of-law declaration

Frequently asked questions

Does buying property in the EU give me residency? No. Property ownership and residence rights are legally separate. You'll need to qualify for a visa or residence permit through the destination country's immigration scheme. Non-EU buyers remain subject to the Schengen 90/180-day limit regardless of property ownership.

Do I need an EPC to sell or rent out my European property? Yes, under EU Directive 2010/31/EU (implemented nationally), a current EPC must be made available when selling or renting, included in property advertisements, and handed over to the buyer or tenant. As a future seller or landlord, you'll need to commission one if it's expired or unavailable.

How do apostilles and translations work for a property purchase? An apostille is a certificate issued by a designated Competent Authority under the Hague Convention 1961 that authenticates the origin of a public document for use in another contracting country. After apostilling, a sworn or certified translation into the local language is usually required for the notary and bank.

What does a notary do in a European property purchase? A notary acts as a public legal officer. They authenticate the deed of sale, verify identities, confirm the transaction complies with local law, and handle registration formalities. They don't represent either party exclusively, they're the state-authorized officer making the transaction legally valid.

What AML checks will I face as a buyer? You'll need to provide identity documents (passport, proof of address) and documentation proving the source of your purchase funds. This is mandatory under EU AML rules for all parties in a real estate transaction. Prepare this pack early to avoid closing delays.

How does EU succession law work for a cross-border property? Under Regulation (EU) No 650/2012, EU residents can choose the law of their nationality to govern their entire estate, including foreign property. Without a choice-of-law declaration, the law of the country where you were habitually resident at death applies. A cross-border estate lawyer can advise on whether a formal declaration makes sense for your situation.

What changes under the new EU short-term rental regulation? Regulation (EU) 2024/1028 requires accommodation rental platforms to collect and share rental activity data with national and local authorities. This increases tax and regulatory visibility for governments. If you plan to use your property as a short-term rental, expect greater scrutiny of income and compliance with local registration requirements.

Start your search with country-specific guidance

The challenges above are real, but none of them are insurmountable with proper preparation. What makes them harder than they need to be is starting a property search in a country you don't know, without a clear picture of the steps involved.

Homestra is built specifically for this situation. With over 200,000 properties across Europe and destination-specific buying guides for international buyers, the platform gives you a grounded starting point: understand the process for your target country, filter properties that meet your criteria, and approach the purchase with a clear checklist rather than guesswork.

Whether you're looking at a fritidshus in rural Sweden, a stone house in Portugal's interior, or an apartment on the French coast, the process is navigable. The key is knowing which questions to ask, and asking them before you fall in love with a property.

Browse second homes across Europe or read the complete guide to buying property abroad to start building your country-specific plan.