Natalie There are countless places where Americans can buy property in Europe. The European property market is a treasure trove, from charming countryside homes to bustling urban apartments. However, each country has its own property markets and laws, which the EU does not govern. This diversity means non-EU buyers should research thoroughly before purchasing, so in this article, we discuss places, buying procedures, regulations, residency, tax implications, and more.
Countries Where Americans Can Buy Property in Europe
1: Spain
Although homes are cheaper in the North, most foreigners in Spain pay that extra and head to the southern coasts for hotter weather. The Costa Del Sol and Costa Blanca cover hundreds of towns and villages where foreign vacation homeowners and retirees head to. While, working ex-pats generally head to big cities like Madrid and Barcelona for better job opportunities. Spain is no stranger to foreigners, with Europeans and other nationalities buying homes there year-round and retiring there for the sun, sea and sand lifestyle.
2: Portugal
As a favourite destination for celebrity buyers, the Algarve has a long-standing reputation for luxury, and of course, Portugal is one of the top golfing destinations in the world. With flights direct from the US to places like Lisbon and Faro, Americans say they enjoy a better standard lifestyle, especially considering living costs.
Bairro Alto is winning fans, but for high-profile lifestyles, Quinta Do Lago has much to offer. Sitting just west of Lisbon, Cascais, famed for gorgeous sandy havens and an expensive marina, presents another worthy price choice. Homebuyers pay higher prices for coastal properties with fantastic sea views, but local real estate markets do luxury homes with style and finesse.
3: Italy
Regions like Tuscany and Umbria and coastal areas like the Amalfi Coast are popular among American buyers, and Italy earns fame for historic homes and countryside villas. The cities of Udine and Bolzano have higher standards of living, but in recent years, infrastructure development has boosted Puglia’s popularity. Property prices vary significantly by region. Northern Italy (e.g., Lombardy, Veneto) is generally more expensive than the south (e.g., Calabria, Sicily). To buy, foreigners need a Codice Fiscale. After signing a Preliminary Agreement (Compromesso), they will pay the deposit, sign the Final Agreement (Rogito), and take ownership.
4: France
Americans have long been favourites in Paris, the city of arts, culture, food, and design. Yet, over the last twenty years, they branched out to Provence. Whereas the Riviera commands top prices, some buyers opt to be at one with nature in the French Alps, where towns have extended their tourism seasons past the typical ski scenes.
France’s oldest city, Marseille, features the famous Basilica of Notre-Dame-de-la-Garde, a Romano-Byzantine church and city symbol. Bordeaux City delivers refined, regional gastronomy and French restaurants serving gourmet delights. Lyon’s nickname, “capital city of lights,” refers to the four-day Fete des Lumieres festival. Plenty of other cities, like Nice, attract ex-pats looking to live in the country.
5: Greece
Islands like Crete, Santorini, and Mykonos are popular for vacation homes while cities like Athens and Thessaloniki offer ancient history and modern amenities. Greece is significantly cheaper than the US for living costs, making it an attractive option for retirees and investors. With foreign residents making up approximately 8% of the population, Greece offers exceptional lifestyles, and prices are often more affordable than in European countries like France or Italy, especially in less tourist-heavy areas.
6: Ireland
Dublin and rural areas in County Clare draw American buyers. The English-speaking environment and friendly property laws are appealing factors, and Ireland has a reputation as a haven for long-term real estate investment. Low taxes are a significant advantage for American retirees.
Ireland has a robust, fast-growing economy, often called the “Celtic Tiger” for numerous multinational companies, particularly in tech and pharmaceuticals. Buyers will find strong rental markets in cities like Dublin, Cork, and Galway, while the country’s business-friendly tax policies attract global talent and drive demand for residential and commercial properties.
7: Malta
This Mediterranean Island is popular for its warm climate, delicious cuisine, and English-speaking population. Malta offers various real estate options and attracts apartment buyers. US, UK, and Chinese citizens are the top three nationalities investing in Malta’s golden visa program to get EU citizenship. There are several places to buy.
Cosmopolitan Sliema features modern apartments and historic homes and is popular with expats. St. Julia is home to the Portomaso Marina, a prestigious address with high-end properties. Valletta is Malta’s capital and a UNESCO World Heritage Site with historic properties. Gozo is a quieter, rural island offering tranquillity, and prices are more affordable than mainland Malta.
8: Cyprus
Americans can invest in beachfront houses along the coast or in urban centres like Nicosia and Limassol. The critical thing to know is that the south is part of Europe, but the North belongs to Turkey. Some foreigners have been buying in the north recently because of cheaper prices. The third-largest island in the Mediterranean Sea sits between Europe, Asia, and Africa, and has four major cities: Nicosia, Limassol, Larnaca, and Paphos, each with unique attractions. Nicosia, the capital, is steeped in history and culture, whereas Limassol promotes a thriving business district and dynamic nightlife.
Also, Consider Turkey
Many Americans love Turkey and base themselves in big cities like Istanbul and Izmir. The love affair isn’t new since it stretches back to when America had an air force base near Ankara. Sitting on two continents, Europe and Asia, Turkey offers unique experiences. If you are not bothered about buying in a country that is part of the EU, Turkey has a quick buying process. Buyers get title deeds in as little as a week, making the process efficient and straightforward.
Market Trends and Demand
Germany saw impressive price rises of 7.6% in 2023. France, while experiencing a slower pace of development, remains a global player. The average price per square meter in the capital city of Paris is €10,500, despite a nationwide price increase of only 4.5% in 2022, which then slowed in 2023. Driven by the European Union’s green building regulations, energy-efficient homes are in higher demand because they offer long-term cost savings. COVID-19 also led to shifts in housing demand types, as some families declined urban centres, seeking homes in smaller towns.
Several areas in Southern Europe, such as Abruzzo in Italy and Istria in Croatia, are witnessing higher demand. Istria reflects similar trends, with prices around US$1,313 per meter for apartments like Pula. The US dollar’s strength against the euro benefits buyers. Despite ongoing issues, such the Ukraine war and a potential recession, the Southern European market shows remarkable resilience. Coastal properties also still attract buyers; however, know that beachfront locations often have higher prices and property taxes.
Europe’s best-kept secrets, like Poland, Hungary, and Slovenia, are witnessing significant price increases. Poland’s house prices surged by 17.7%, while Hungary and Slovenia saw gains of 9.8% and 6.7%, respectively, in the year leading to June 2024. Krakow is lovely, with high demand from residents and foreign buyers, particularly from neighbouring countries such as Ukraine and Slovakia.
Luxury Markets in Europe
Mayfair, Kensington, and Chelsea in London boast high prices, often exceeding £10 million. Paris is another major player in the luxury housing market. The 6th, 7th, and 8th arrondissements command high prices. Monaco prices are among the world’s highest, often exceeding €50,000 per meter. The allure of tax benefits, a country with quality healthcare, a glamorous lifestyle, and a stunning Mediterranean location make Monaco a magnet for ultra-high-net-worth individuals.
Switzerland earns fans for its stability and cleanliness. In Zurich and Geneva, luxury properties in prime locations, particularly along the lakeside, reach impressive prices. The Swiss market attracts fans due to low taxes. As a fashion capital, Milan boasts luxury homes in neighbourhoods like Brera and the Quadrilatero della Moda. For Barcelona in Spain, the Eixample and Ciutat Vella stand out. While prices remain lower than in other major European cities, the demand for high-end properties has increased.
Portugal’s capital, Lisbon, and its northern counterpart, Porto, have emerged as attractive destinations. Areas like St. Tropez, Cannes, and Nice on the French Riviera attract wealthy buyers looking for vacation homes and investment properties. Lastly, Biarritz and the Basque Country in France have gained popularity for their beautiful beaches and relaxed atmosphere, attracting high-end buyers seeking primary residences and vacation homes.
Where are the Most Affordable places to buy property in Europe?
Many places offer affordable prices, but exercise caution and check the property condition and surrounding infrastructure. For example, some villages in Italy offer houses for as little as €1 under initiatives to revive abandoned areas. However, buyers must submit renovation plans and cover associated costs. These villages do not have modern amenities, and you must be a car driver. Hence, that 1 dollar house could be the most expensive endeavour of your life. Other places known for their affordable prices include Bulgaria, Romania, Moldova, and North Macedonia.
Citizenship by Investment Schemes
If you plan a long-term journey into Europe’s markets, check whether the Golden Visa program suits you. Also known as citizenship by investment schemes, several European countries offer them to foreigners who purchase houses. Each country has different minimum investment levels, benefits, and application criteria.
They include Spain, Greece, Hungary, Ireland, Malta, and Italy. Portugal used to have a good program, but unfortunately, it retracted the real estate version in 2024. Additionally, even though only 5% of the population is in Europe, Turkey’s citizenship investment scheme only requires $400,000, takes as little as six months to process, and extends to family.
Step-by-Step Approach to Buying
Know Your Reason
Typically, people buy a house for one of four reasons: passive income, a long-term investment for capital appreciation, somewhere to live or as a vacation rental. Know your reasons because this will be a significant factor in your chosen location. Someone who wants a holiday home typically buys in coastal resorts near restaurants, shopping and nightlife scenes, and the beach and sun. Those looking for rental buy-to-let needs markets with a strong tourist base. It would be best to have up-and-coming areas with future infrastructure plans and maybe even off-plan homes for investment.
Financing, Budgeting and Currency
Some European countries offer mortgages to foreigners; however, the terms and conditions and the interest rates must be checked. As well as sourcing financing, you need to factor in extra costs for the purchase, like notary fees, taxes, stamp duty, lawyers’ fees, and translators. These typically range around 8% of the purchase price. Also, consider fluctuating currency exchange rates. This can go up and down over time and affect your house value if you sell and convert it back into USD. Lastly, there is the yearly maintenance and upkeep. In most European countries, a condominium law exists for apartment complexes, and monthly maintenance fees are due by law.
Finding a Reliable Real Estate Agent
It would be best if you had a foot in the door via an estate agent who knows that region well, speaks English, and offers exceptional services. Check for their timely communication practices. Nothing is worse than an agent who doesn’t answer calls or takes four days to respond to an email. Contact us to learn about our services, credentials, and how we can help you with foreign investments.
Understanding the Purchasing Process
Before signing on that dotted line, fully understand how the process will play out. Every country is different, but your real estate agent should give you a step-by-step explanation of what to expect. Additionally, even though some countries don’t require it, we recommend using a local lawyer.
Are there any tax implications for American citizens buying property in Europe?
The implications come not so much from the purchase but capital gains if you sell the property later or income returns if you rent it out as a business. When purchasing, implications depend on whether you are buying in your name or the name of a company.
Risks of Investing in Foreign Real Estate
Euro fluctuations against the USD will impact foreign buyers’ investment returns. Additionally, each European country has its real estate laws and regulations, which can differ drastically. Research zoning laws, land ownership, property taxes, and restrictions because some countries have complex processes that delay transactions or complicate purchases.
Language or cultural differences can lead to miscommunications between real estate agents, legal advisors, and contractors. So, only work with local experts who speak good English and are used to dealing with foreign markets. Additionally, if you are not going to be in the country, you need a key holder to respond in case of an emergency like water bursts.
Renting Out Your Property
If you want to rent your home, remember that many European destinations are already saturated with rental properties because of tourism. In addition, most tourism destinations do not offer 100% occupancy potential all year round. Research the European laws regarding long and short-term rentals, what licenses are required and how to pay income tax. Commercial property opens a whole other market and is mostly best avoided
Residency Requirements
Many places have the 90 / 180-day rule, in that non-EU citizens can stay for 90 days but need residency permission to stay longer, regardless of whether they own residential property. Suppose you plan to spend more than 90 days in a country out of six months; find out how to apply for residency.
Use Our Services
We are Spot Blue International, a real estate agency with gateways into the European property market. See our broad portfolio of property here. If you want to know more about where Americans can buy property in Europe, call us today and chat with one of our agents. Our services are a complete start-to-finish process that will ensure you become a happy homeowner in Europe.
