How to Buy a Holiday Home in Europe — Step-by-Step Guide 2026

By Holiday Home Scout

Buying Abroad Is Easier Than You Think

The idea of buying a holiday home in another country feels daunting. Different languages, unfamiliar legal systems, and the fear of being taken advantage of all hold people back. But the reality is that tens of thousands of foreigners buy property in France, Italy, Spain, and Portugal every year, and the process — while different from what you know at home — is well-established and well-protected.

In every major European property market, the transaction is overseen by a notary (a public official, not just a private lawyer) who ensures legality and protects both parties. Title insurance is rarely needed because the land registry systems are comprehensive. And with the internet, you can research, view, and even begin the purchase process before ever setting foot in the country.

This guide walks through each step of the buying process, highlights where the four countries differ, and flags the common mistakes that trip up first-time international buyers.

Step 1: Choose Your Country and Region

Your choice of country shapes everything: the legal process, the costs, the climate, the culture, and the long-term value of your investment. Each country has distinct advantages:

  • France: The largest inventory of affordable historic properties (châteaux, manors, farmhouses) in Europe. Excellent healthcare, infrastructure, and food culture. Property prices in rural areas remain well below 2019 peaks — a EUR 300,000 budget can buy a small castle. Transaction costs are moderate (8-10% for older properties).
  • Italy: Unmatched for romantic architecture and lifestyle. The 1-euro house programme offers extraordinary entry-level prices. Rural properties in Abruzzo, Molise, and inland Sicily are among the cheapest in Western Europe. However, Italian bureaucracy is notoriously slow.
  • Spain: Reliable sunshine, strong rental demand, and excellent transport links. The costas are saturated, but inland regions (Aragón, Extremadura, Castilla-La Mancha) offer exceptional value. Spain has the most straightforward buying process for foreigners.
  • Portugal: The Algarve remains popular, but the Centro and Alentejo regions offer quintas (estates) at a fraction of Lisbon prices. Portugal's NHR (Non-Habitual Resident) tax regime can offer significant tax advantages for retirees, though recent changes have tightened eligibility.

Step 2: Set Your Budget

The purchase price is only part of the equation. A property listed at EUR 200,000 will cost you EUR 220,000 to EUR 260,000 by the time you have the keys and the lights on. Here is what to budget beyond the asking price:

Transaction Costs by Country

Cost Item France Italy Spain Portugal
Transfer tax / stamp duty 5.8% (older properties) 2-9% (varies by buyer status) 6-10% (varies by region) 6-8% (IMT, sliding scale)
Notary fees 1-2% 1-2.5% 0.5-1% 0.5-1%
Estate agent fees 3-8% (usually paid by buyer) 3-4% (split buyer/seller) 3-5% (usually paid by seller) 3-5% (usually paid by seller)
Legal fees (lawyer) EUR 1,500 - EUR 3,000 EUR 1,500 - EUR 3,000 EUR 1,000 - EUR 2,500 EUR 1,000 - EUR 2,500
Land registry Included in notary EUR 200 - EUR 600 EUR 300 - EUR 600 EUR 250 - EUR 500
Total transaction costs 8-12% 7-15% 8-13% 7-12%

Ongoing Annual Costs

Annual Cost France Italy Spain Portugal
Property tax Taxe foncière: EUR 500 - EUR 3,000 IMU: EUR 400 - EUR 2,500 IBI: EUR 200 - EUR 1,500 IMI: EUR 200 - EUR 1,200
Income tax on rental 20% (micro-BIC) or actual costs 21% flat (cedolare secca) 19% (EU) / 24% (non-EU) 25% (flat rate option)
Wealth / non-resident tax None for property under EUR 1.3M IVIE: 1.06% for non-residents Patrimonio: none under EUR 700k None

Step 3: Find a Property

The best property search websites vary by country. Here are the most useful starting points:

  • France: french-property.com, leboncoin.fr, seloger.com, belles-demeures.com, green-acres.fr
  • Italy: immobiliare.it, casa.it, idealista.it, gate-away.com (English-language portal for international buyers)
  • Spain: idealista.com, fotocasa.es, habitaclia.com, kyero.com (English-language portal)
  • Portugal: idealista.pt, casa.sapo.pt, imovirtual.com, house-inportugal.eu

Tip: Also check Holiday Home Scout — we curate the most interesting affordable properties, castles, and historic homes across all four countries, saving you hours of searching through mainstream portals.

Step 4: Visit and Inspect

Never buy a property you have not visited in person. Online listings can be misleading — photographs may be years old, descriptions can exaggerate, and structural problems are invisible in pictures.

Plan a dedicated property-hunting trip of at least 4 to 5 days. View a maximum of 5 to 6 properties per day. Bring a checklist and take photos and notes. Pay attention to:

  • Structural condition: Roof, walls, foundations, damp. Hire a local surveyor or building inspector for any property you are serious about — costs range from EUR 300 to EUR 800.
  • Access: Road quality, distance to nearest town, winter accessibility.
  • Neighbours and noise: Visit at different times of day.
  • Services: Water supply (mains or well?), electricity capacity, internet availability, sewage (mains or septic?).
  • Local amenities: Nearest shops, restaurant, medical facility, school.

Step 5: Make an Offer

In all four countries, the offer process follows a broadly similar pattern, but with important local variations:

  • France: The offre d'achat is typically verbal or written. Once accepted, the notary prepares a compromis de vente (preliminary contract). The buyer then has a legally mandated 10-day cooling-off period during which they can withdraw without penalty. A deposit of 5-10% is paid upon signing the compromis.
  • Italy: The proposta d'acquisto is a formal written offer, often accompanied by a deposit cheque. If accepted, a compromesso (preliminary contract) is signed with a deposit (caparra confirmatoria) of 10-20%. Pulling out after signing the compromesso means losing the deposit.
  • Spain: A contrato de arras (deposit contract) secures the deal, with a typical deposit of 10%. Under the standard arras penitenciales, the buyer forfeits the deposit if they pull out, and the seller must return double the deposit if they renege.
  • Portugal: A contrato-promessa de compra e venda (promissory contract) is signed with a deposit of 10-20%. The mechanism mirrors Spain: buyer loses deposit on withdrawal; seller returns double on default.

Between the preliminary contract and the final sale, several important steps must happen:

  1. Title search: Your lawyer or notary verifies that the seller has clear title, that there are no liens, mortgages, or encumbrances on the property, and that the property boundaries match official records.
  2. Planning and building checks: Confirm that the property complies with local planning regulations, that any extensions or modifications were properly permitted, and that there are no pending enforcement actions.
  3. Energy performance certificate: Required in all four countries before sale. Usually the seller's responsibility to obtain.
  4. Diagnostics and surveys: In France, the seller must provide extensive diagnostics (lead, asbestos, termites, electrical, gas, sewage, energy, natural risks). In other countries, surveys are recommended but not always mandatory.
  5. Mortgage (if applicable): If financing, your bank will conduct its own valuation and may impose conditions.
  6. Tax registration: You will need a local tax identification number: NIE in Spain, NIF in Portugal, codice fiscale in Italy. France does not require one for purchase but you will receive one from the tax office.

Step 7: Completion and Keys

The final sale takes place at the notary's office. In all four countries, the notary reads the deed aloud (in the local language), verifies identities, ensures all conditions have been met, collects payments, and registers the transfer with the land registry.

Timeline from offer to completion:

  • France: 2 to 4 months (the notary conducts extensive checks)
  • Italy: 1 to 3 months (faster but variable)
  • Spain: 1 to 2 months (the quickest process)
  • Portugal: 1 to 3 months

If you cannot attend in person, all four countries allow completion by power of attorney (procuration/procura/poder). Your lawyer can sign on your behalf.

Common Mistakes to Avoid

  • Not hiring an independent lawyer: The notary protects the transaction but does not represent your interests specifically. Always hire your own lawyer, especially as a foreign buyer.
  • Underestimating total costs: Add 15-25% to the purchase price for transaction costs, and budget for renovation, furnishing, and at least one year of running costs.
  • Skipping the survey: Structural surveys are inexpensive relative to the potential cost of undiscovered problems. EUR 500 for a survey can save EUR 50,000 in unexpected repairs.
  • Buying the wrong location: A beautiful property in a village with no shops, no phone signal, and flooded roads in winter is not a dream — it is a problem. Visit in the off-season before committing.
  • Ignoring inheritance laws: France, Italy, Spain, and Portugal all have forced heirship rules that may override your will. Without proper planning, your property may not pass to the people you intend.
  • Not opening a local bank account: You will need one for paying utilities, property tax, and contractors. Open it early in the process.
  • Letting emotion override logic: Falling in love with a property is natural, but always walk away from a deal that does not make financial sense. There will always be another beautiful house.

Frequently Asked Questions

No, but it helps enormously. In France and Italy, the notarial deed must be read in the local language, and if you do not speak it, a sworn translator must be present (at your expense, typically EUR 300 to EUR 600). In Spain and Portugal, bilingual lawyers can handle most of the process in English. For day-to-day dealings with agents, builders, and neighbours, even basic language skills make a significant difference.

Yes, banks in France, Spain, and Portugal regularly offer mortgages to non-residents, typically lending 60% to 70% of the property value with terms of 15 to 25 years. Interest rates for non-residents are usually 0.5% to 1% higher than for residents. Italy is more restrictive — mortgages for non-residents are possible but involve more paperwork and longer processing times. Alternatively, many buyers remortgage their primary residence at home to fund the purchase.

Budget 1% to 3% of the property value per year for running costs. This includes property tax (EUR 500 to EUR 3,000), insurance (EUR 300 to EUR 1,200), utilities (EUR 1,200 to EUR 3,600), and a maintenance reserve. A EUR 200,000 property typically costs EUR 3,000 to EUR 6,000 per year to maintain. Larger properties with pools or extensive grounds will be at the higher end.

You will pay local property tax in the country where the property is located. If you rent the property out, rental income is taxable in that country (and potentially in your home country, with double-taxation treaties usually preventing you from paying twice). Capital gains tax applies when you sell, with rates and exemptions varying by country. Consult a tax advisor familiar with cross-border property ownership in both countries.

For most holiday home buyers, purchasing as a private individual is simpler and cheaper. Company structures (like a French SCI) make sense when multiple people are buying together, when you want to simplify inheritance, or when the property will be used primarily as a rental business. Company structures add annual accounting costs (EUR 500 to EUR 2,000) and administrative complexity. A local lawyer can advise on which structure suits your situation.

Ready to find your European holiday home? Browse our curated collection of affordable castles, manors, farmhouses, and country houses.

Search all properties or explore by country: France | Italy | Spain | Portugal

If you are considering buying with friends or family, read our Shared Ownership Guide. Interested in Italy's bargain programme? See our 1-Euro Houses Complete Guide.