Sale of real estate abroad

Dreaming of a villa by the sea or a secluded cabin in the Alps? How about living in the south of Italy for just one euro? Making such dreams come true is more real than it may seem at first glance. In fact, most European and non-European countries allow foreigners to buy property and some even encourage such investments. In this article, you’ll learn how buying property abroad works, focusing on the most popular destinations. Finally, we’ll also give you advice on how it works in these cases with mortgage financing.

9 minutes of reading

Chapters of the article

General rules for buying property abroad

Buying a property abroad is practically no different frombuying a property here. In some countries, however, there are restrictions in the form of, for example, the need for state approval (e.g. Hungary), while in others, sales to individuals are prohibited with exceptions (e.g. in Canada, foreigners are prohibited from buying property in urban areas for the next two years). In general, however, this is not a problem in most countries and many countries even attract and encourage foreign investors. In any case, however, you need to be prepared for different customs and rules. In particular, you should watch out for:

  • Property values: research the local property market to understand current prices and trends. This will help you to know if an offer is a real bargain.
  • Economic stability: Consider the economic stability of the country and region. This is because political stability and economic conditions have the potential to greatly affect the value of the property you buy in the future. In these times of global warming, for example, it’s also a good idea to consider the water supply or whether there is sufficient groundwater.
  • Taxes: Familiarise yourself with the tax laws of your chosen country. This includes property taxes, real estate acquisition taxes and any other relevant taxes.
  • Currency risks: If you plan to finance the purchase of a property with a loan in another currency, find out the possible risks. Fluctuations in the exchange rate can significantly affect your repayments.
  • Services and infrastructure: Check the availability and reliability of basic utilities such as water, electricity and internet. Find out where the nearest hospital is located and the quality of the local healthcare system.
  • Rules of residence. Some countries may grant special visas or forms of citizenship based on property ownership, which could be a significant advantage for you.
  • Local customs and practices. For example, the south of Italy is notorious for the prevalence of black buildings, while elsewhere you will encounter complex and lengthy bureaucracy.

Tip: Buying property abroad is a significant step and is specific in that it must always be governed by the law of the country in question. Don’t leave anything to chance and contact our experienced attorneys. They will provide you with a complete contractual and legal service. They can do it within 48 hours, flawlessly and professionally.

As can be seen, the rules vary considerably from country to country. So let’s at least take a look at the rules for buying property in destinations that are leading among Czechs.

Selling property in Croatia

Croatia can clearly be described as the most popular holiday destination. The crystal clear sea, white mountains and a culture very similar to ours. All of this may tempt Czech residents to settle in this country permanently or to buy a summer residence. But how does it all work?

As a citizen of the European Union, you have the advantage of the same rules that apply to Croatian citizens when buying property in Croatia. However, restrictions apply to certain types of land. Specifically, you cannot buy agricultural land, forests or cultural monuments as a foreigner.

Another advantage is the absence of property tax, except for a holiday home. On the other hand, you will have to pay property acquisition tax, which is 3% of the market value of the property. It should also be mentioned that Croatia is one of the more expensive destinations, and this includes the price of real estate. However, the price depends a lot on the location. The cheapest places to buy property are in the north, around Split or on some of the islands. The cheapest property is around Senj.

Tip: Want to work abroad as a freelancer? Then read on to find out what it’s like to be able to use your trade in Germany or Slovakia and what you need to do to do so.

Real estate for sale in Italy

Italy is another popular destination. Here too, as an EU citizen , you can buy property under the same conditions as Italian citizens. As far as taxes are concerned, you will have to pay a property acquisition tax of 3-7% of the market price of the property and a property tax of 1% of the market price.

Property prices in Italy range really widely. The cheapest places to buy property are in the north and in the big cities. The cheapest property is in the south of Italy, especially in Calabria, Molise and Sicily. Surprisingly, it is also very cheap to buy property in the Abruzzo region, which lies to the east of Rome and offers the Adriatic coast as well as mountains and national parks. Surprisingly, it is possible to buy property in these areas at much more affordable prices than in the Czech Republic. Even more surprising may be the fact that you can buy a house in Italy for as little as a euro.

Tip: You don’t just have to buy property, you can also rent it. Contact us. We will draw up or review a lease agreement tailored to your case based on the laws of the country.

House in Italy for a euro

You can buya house for a euro in Italy mostly in small southern towns like San Piero Patti in Sicily. These are usually old townhouses in need of a complete renovation. You can buy such a house for as little as one euro, with the proviso that you have torenovate it within three years .

Italy introduced this programme to attract young people and investors (including foreigners) to areas with an ageing population and a poorer economic situation. So if a townhouse in Sicily is something you’re after, now is your best opportunity.

Property for sale in Spain

We mustn’t forget the popular Spain. Here, too, you can buy a property without any problems. To buy, you will need a so-called NIE (Número de Identificación de Extranjero), which is a special identification number for foreigners thanks to which you will be able to carry out financial transactions. You just need to apply for this number at the Spanish consulate.

It is also possible to buy property in Spain at a reasonable price. Especially in regions such as Alicante or Valencia, where prices on the property market are more favourable than here. As far as taxes are concerned, you cannot avoid the property acquisition tax, which is 6-10% of the price.

A big advantage of buying a property in Spain is the possibility of obtaining a so-called golden visa. This is obtained if you buy a property worth at least 500 000 euros. This visa will give you a residence permit. If you stay in the country for at least ten years, you can also obtain Spanish citizenship on the basis of this visa.

Are you interested in buying a property?

Unfortunately, we cannot help you with buying a property abroad, but you can use our services for buying or selling a property in the Czech Republic. We will provide you with a complete contractual and legal service related to the purchase or sale of a property. We can do it within 48 hours, flawlessly and professionally.

Mortgage on a property abroad

Would you like to buy a property abroad but don’t have enough money saved? No matter, in this case it is also possible to finance the purchase with a mortgage. However, the rules are very different from a mortgage for a property in the Czech Republic. The main reason is that you cannot guarantee a property located outside the Czech Republic, so you cannot guarantee the property you are buying, as is usually the case. So what are your options?

Mortgage from a foreign bank

The first option is to take out a mortgage from a bank in the country where you are going to buy the property. This makes it possible to mortgage the property you are buying directly. However, the conditions for obtaining such a mortgage can be much more difficult for foreigners than for locals. These conditions vary from country to country. Often, however, you will have to have a documented income in an international currency (euro or dollar) or the currency of the country in question. In addition, you will also only be able to obtain a lower amount of money than in the Czech Republic (usually only 50-80% of the market price of the mortgaged property).

Mortgage with a pledge of another property

Another option is to take out a mortgage in the Czech Republic secured by another property in the Czech Republic. This property can be any property intended for residential use. It can be owned by you or by someone else (e.g. your partner or parents), but in this case you will need their consent. You can also mortgage a holiday home. But it must be suitable for year-round living.

Tip: Didn’t find the answer to your question? Email us and you will have an answer from one of our attorneys within 48 hours.

However, the problem with a classic mortgage from a Czech bank is that not every bank will give you a mortgage for a foreign property. But there is another option in the form of an American mortgage, where you don’t need to prove its purpose. At the same time, you won’t get the same favourable terms as with a conventional mortgage.

In conclusion, buying a property abroad can be quite a viable option, but it requires a thorough understanding of the local conditions and specifics. This is because each country has different rules that can greatly affect the whole process from buying and financing.

Are you solving a similar problem?

Dostupný advokát team of online lawyers will solve it for you.

Real Estate Purchase or Sale

We provide a complete package of legal services related to real estate sales and purchases, including reservation contracts and escrow services. We will also help you with all tax and land registry issues. Our work is fast and accurate, ensuring a worry-free transaction. You’re also welcome to pay after services are provided.

Preset Prices
All services pre-priced for no surprises.
We Do Everything Online
Save time, money and the hassle of travel.
We Work Fast
90 % of issues get solved by the following day.
Experienced Team
We have specialists for every field of law.

Has this content helped you? Give it a rating

No rating yet. Be first to rate and help others.

Author of the article

JUDr. Ondřej Preuss, Ph.D.

Ondřej is the attorney who came up with the idea of providing legal services online. He's been earning his living through legal services for more than 10 years. He especially likes to help clients who may have given up hope in solving their legal issues at work, for example with real estate transfers or copyright licenses.

Education
  • Law, Ph.D, Pf UK in Prague
  • Law, L’université Nancy-II, Nancy
  • Law, Master’s degree (Mgr.), Pf UK in Prague
  • International Territorial Studies (Bc.), FSV UK in Prague

Reviews of the Dostupný advokát service

Recenze služby

PhDr. Helena Hoffmanová, Prague

before 4 years

I lease and sublease properties professionally and have been working with Dostupný advokát regularly long term. I especially appreciate their reliability. I also admire the flexibility and professionalism of their online legal service. But what I value most is that they are always on top of the latest news. With Dostupný advokát I can feel (zobrazit více) confident because I know that my business is always covered.

Recenze služby

Jan Sekanina, Prague

before 4 years

My grandparents wanted to give me an apartment, but I was extremely busy at the time and couldn’t afford to put any time into finding out what I needed to do. I also had no idea how to get the transfer of ownership handled at the Land Registry. Dostupný advokát arranged everything for me, and (zobrazit více) the apartment transfer was legally arranged with no issues. Thank you and thumbs up!

Recenze služby

Lucia Tóthová, Prague

before 3 years

We chose the premium package because it promised a fast reply within 24 hours, and we needed help quickly. A few hours after sending our order, Dostupný advokát called us. After discussing our issue and agreeing on the next steps, we felt confident in how the whole procedure would go since we had never experienced (zobrazit více) it before. We appreciate their patience.

View All Testimonials

You could also be interested in

About us in public media
Logo Česká advokátní komora Logo Advokátní kancelář roku 2023 a 2024
Follow the news
Facebook Dostupný advokát Twitter / X Dostupný advokát