How to Buy Property Abroad: The Complete Step-by-Step Guide for First-Time Buyers

Published on: July 4, 2026

Quick answer: Buying property abroad follows a similar sequence wherever you buy: define your goal and a realistic all-in budget (add roughly 10% to 15% for taxes and fees), choose the country and location, get a local tax number, open a bank account and plan the currency transfer, arrange financing, hire your own independent lawyer, then search, offer, complete due diligence, sign at the notary, and register your ownership. The three things that catch first-time buyers out are the extra costs on top of the price, the larger deposit a non-resident mortgage needs, and relying on the seller's agent instead of your own lawyer.

Buying a home in another country is not the same transaction as buying one down the road. The legal system is different, the taxes are different, the deposit your bank expects is usually larger, and the person selling to you speaks to a market you may not yet understand. None of this makes it risky in itself. It makes it a process that rewards preparation.

This guide walks through that process from the first budgeting decision to the day you collect the keys. It is deliberately country-agnostic, because the sequence is remarkably similar whether you are buying an apartment in Lisbon, a villa on the Costa del Sol, or a Marina flat in Dubai. Where a step changes meaningfully from one country to another, we point you to a more detailed guide.

Before you start: what actually changes when you buy abroad

Three things trip up almost every first-time overseas buyer:

The advertised price is not the total price. Depending on the country, taxes and fees add roughly 8% to 15% on top of the purchase price. Budgeting for the sticker price alone is the single most common planning mistake.
Financing is harder and the deposit is bigger. Non-resident mortgages typically cap out at 60% to 70% of the property value, so buyers often need 30% to 40% in cash plus the transaction costs on top.
You cannot rely on the seller's agent to protect you. In most countries the estate agent is paid by and works for the seller. Your protection comes from your own independent lawyer, not from the agent showing you the property.

Keep those three realities in mind and the rest of the process becomes a checklist rather than a gamble.

Step 1: Define your goal, then your real budget

Start with why you are buying, because it changes everything downstream. A holiday home, a pure rental investment, a retirement base, and a residency-driven purchase each lead to different countries, different neighbourhoods, and different tax treatment.

Once the goal is clear, build a budget that includes the full cost of acquisition, not just the price:

Purchase price
Transaction taxes (transfer tax on resale, or VAT plus stamp duty on new build)
Notary and land registry fees
Independent legal fees (usually around 1% to 1.5% of the price)
Currency conversion cost on the full amount you transfer
Mortgage set-up costs, if you are financing
A contingency buffer for surveys, translations, and the unexpected

As a working rule, add 10% to 15% to the price to estimate the all-in figure, then refine it once you have chosen a country. For a country-specific breakdown, see our guide to the real all-in cost of buying in Spain.

Step 2: Choose the country and the location

The country determines your legal framework, tax exposure, and residency options. The location within it determines your lifestyle, your rental yield, and how easily you can resell later.

Weigh the factors that match your goal: climate and lifestyle, price and yield, the transparency of the legal system, ongoing property taxes, and residency or visa implications if you plan to spend significant time there. Post-Brexit, for example, British buyers spending long periods in the EU need to plan around the 90-days-in-any-180 Schengen limit and consider a long-stay visa if they want to stay longer.

If you are still comparing destinations, our country and city guides cover the practical realities market by market.

Step 3: Get a local tax identification number

Almost every country requires foreign buyers to obtain a tax identification number before they can purchase, open a bank account, or pay taxes. In Spain it is the NIE, in Portugal the NIF, and most countries have an equivalent. It is usually inexpensive and obtainable either in-country or through the local consulate in your home country, but processing can take anywhere from a day to a few weeks, so start early.

Step 4: Open a local bank account and plan the currency transfer

You will generally need a local bank account to pay taxes, utilities, and community fees, and to move purchase funds. Set this up in parallel with the tax number.

Currency is where quiet money is lost. Exchange rate movements between the day you agree a price and the day you complete can shift the real cost of a home by thousands. A specialist currency provider will usually beat a high-street bank on the rate, and forward contracts let you lock in a rate in advance so a swing in the market does not blow up your budget.

Step 5: Decide how you are financing the purchase

If you are paying cash, you skip a great deal of complexity. If you need a mortgage, understand the non-resident reality early: lenders in most countries offer non-residents 60% to 70% of the property value, sometimes less, and they assess your income and debt against local affordability rules. That means a larger deposit and a longer approval process. Get a mortgage in principle before you make offers so you know exactly what you can commit to.

Step 6: Engage your own independent lawyer

This is the step that protects you, and it is worth stating plainly: hire a lawyer who is independent of the seller, the developer, and the agent. Their job is due diligence, checking that the seller genuinely owns the property, that it is free of debts and charges, that it has the correct licences and planning permissions, and that the contract protects you. In many countries this is not legally mandatory, which is exactly why some buyers skip it and later regret it. Do not be one of them.

Step 7: Search, shortlist, and view

With budget, financing, and advisers in place, the search becomes focused rather than overwhelming. Modern cross-border platforms let you filter verified listings by country, city, price, and property type, so you arrive at a shortlist before you ever book a flight. Many buyers now complete much of the search and even initial viewings remotely; our guide to buying property without visiting in person covers how to do this safely.

When you do visit, a well-planned viewing trip lets you see a shortlist over a few concentrated days rather than one property at a time.

Step 8: Make an offer and sign the preliminary contract

Once you find the property, you negotiate and, when agreed, sign a preliminary or reservation contract and pay a deposit, commonly around 10% of the price. This deposit takes the property off the market and commits both sides. The terms of this contract matter enormously, which is why your lawyer reviews it before you sign anything and before any money moves. Understand exactly what happens to your deposit if either side pulls out.

Step 9: Complete the due diligence

Between the preliminary contract and completion, your lawyer verifies everything: the title and ownership history, any outstanding mortgages, liens or debts attached to the property, planning and building permissions, and whether what you are buying matches what is legally registered. For older or rural properties, a survey is money well spent. This window exists to catch problems while you can still walk away, so never let yourself be rushed through it.

Step 10: Sign at the notary and complete

In most civil-law countries, the sale is formalised in front of a notary, who verifies the legality of the transaction and records the transfer of ownership. On completion day you pay the balance of the price, the transaction taxes become due, and ownership passes to you. Your lawyer typically coordinates the payment of taxes and the registration that follows.

Step 11: Register the property and set up ownership

After signing, the change of ownership is entered into the national land registry. This is what secures your legal ownership, so confirm it is done. At the same time, transfer utilities into your name, set up payment of ongoing property taxes and any community fees, and arrange home insurance.

Step 12: Plan for the ongoing costs and obligations

Ownership brings recurring costs that first-time buyers often forget to model: annual property tax, community or building fees, insurance, maintenance, and, in many countries, a tax on non-resident owners even if you do not rent the property out. If you plan to rent it, factor in local rental income tax and any short-term-let licensing rules, which several popular markets have tightened recently.

Common first-time mistakes to avoid

Budgeting only for the price and being blindsided by 10% to 15% in fees
Skipping an independent lawyer to save money
Rushing due diligence under pressure from a "someone else is interested" line
Assuming a property purchase automatically grants residency (in most countries it does not, and several golden-visa property routes have closed)
Ignoring currency risk on a large international transfer
Not planning around visa and tax-residency day limits if you intend to live there

Frequently asked questions

Can a foreigner buy property abroad without residency or citizenship?
In most popular destinations, yes. Countries like Spain, Portugal, Greece, Italy, and the UAE allow foreign nationals to buy freely, requiring only a local tax number. A minority of countries restrict foreign ownership of certain property types or in certain zones, so confirm the rules for your specific target country before you commit.

How much money do I need on top of the purchase price?
Budget roughly 8% to 15% of the price for taxes and fees, depending on the country and whether the property is new or resale. If you are financing, add the deposit gap: with non-resident mortgages typically capped at 60% to 70% of value, you may need 30% to 40% of the price in cash as well.

Do I really need a lawyer to buy property abroad?
In many countries a lawyer is not legally required, but it is strongly advised. An independent lawyer performs the due diligence that protects you from buying a property with hidden debts, missing permits, or unclear title. It is the cheapest insurance in the entire transaction.

Can I buy property abroad without visiting in person?
Increasingly, yes. Many buyers shortlist and even reserve remotely using verified listings, virtual viewings, and a local lawyer acting on a power of attorney. It requires more care around verification, which our dedicated guide covers in detail.

Will buying property give me residency or a golden visa?
Usually not automatically. Some countries still offer residency-by-investment through property, but several major programmes have closed or removed the real estate route in recent years. Treat residency as a separate legal question from the property purchase, and take specific advice.

Ready to start your shortlist?

The process above is the same wherever you buy. What changes is the market. JanusHermes brings verified listings from trusted agencies across more than 50 countries into one place, so you can compare properties, prices, and locations side by side before you take the next step. Browse listings and start building your shortlist.

This guide is general information, not legal, tax, or financial advice. Rules vary by country and change over time. Always confirm the current requirements for your specific situation with a qualified local professional.

A note on the numbers: where no source is named, the market figures in this article (prices, yields, costs) are indicative estimates compiled from publicly available market data and industry reporting at the time of writing. Markets move and rules change, so treat them as a starting point and verify current figures with official sources before acting on them.