Buying Property
Buying Property in Europe: A Step-by-Step Guide for Americans
From your first search to holding the keys, here is the complete process — including the steps that catch American buyers off guard, the timelines to expect, and how to avoid the most common (and expensive) mistakes.
The European property purchase process is fundamentally different from buying in the US. Understanding the differences upfront will save you time, money, and stress.
Phase 1: Research and budget (1–3 months)
Before you view a single property:
Define your total budget — not just the property price. Add 8–12% for transaction costs (taxes, notary fees, legal fees, agent commission). Budget an additional €5,000–15,000 for the first year of ownership (repairs, furnishing, utility setup, insurance).
Get financing confirmed first. If you plan to use our US Mortgage Abroad program or a European mortgage, get a pre-approval before you start seriously shopping. This tells you exactly what you can spend and makes your offers credible.
Define your must-haves versus nice-to-haves — proximity to airport, healthcare, beach, expat community, walkability, English accessibility.
Phase 2: Legal groundwork (2–6 weeks, can overlap with Phase 1)
Obtain your local tax identification number. This is required to open a bank account, sign any contracts, and complete a purchase. It can often be obtained via a power of attorney before you visit: a lawyer handles it on your behalf.
Open a local bank account. Some banks now allow remote opening for non-residents.
Engage a local buyer's attorney. This is the single most important step. Do not share an attorney with the seller. Your attorney will protect your interests throughout.
Phase 3: Property search (1–6 months)
View properties in person whenever possible. Photos are optimistic in every country.
Use local estate agents alongside international portals. In many markets, the best properties are sold before they appear online.
Understand local market norms: in Portugal, prices are often negotiable 5–10%; in Spain's tourist areas, less so; in Italy, negotiation is expected.
Phase 4: Offer and promissory contract (2–4 weeks)
Once you find your property, make a written offer. When accepted:
Sign the Promissory Purchase Agreement (Contrato Promessa in Portugal; Contrato de Arras in Spain; Compromesso in Italy; Prokatastatikosynfono in Greece).
Pay the reservation deposit, typically 10%. If the seller withdraws, they owe you double. If you withdraw, you lose the deposit.
Phase 5: Due diligence (4–10 weeks)
Your attorney verifies: clean title (no liens, mortgages, or legal disputes), correct building permits, no outstanding taxes or utility debts, correct property description versus land registry.
This takes longer than Americans expect. Do not push for speed here — skipping due diligence is how buyers inherit the previous owner's problems.
Phase 6: Closing (1 day, at the notary)
All parties (or their attorneys via power of attorney) sign the deed of sale at a notary's office. The full purchase price is transferred. The notary records the transaction.
Phase 7: Post-closing (4–8 weeks)
Your attorney registers the title in your name at the land registry. Utilities, insurance, and local taxes are transferred. If you plan to rent the property, local registration as a rental property may be required.
Total timeline: 3–6 months from first serious search to completion is typical. Rushing shortens due diligence and increases risk.