how to buy a house in europe

Understood. Life here is great, but with some inconveniences. And it’s easy to find yourself falling down the fantasy real estate rabbit hole. As in the United States, homes for sale in Europe are often listed at attractive prices on websites such as Cerrogar in France, Fotocasa in Spain, and Immobilia in Italy. However, the actual purchasing process can quickly become complicated. Experts say this is where you should start.

Obtaining a visa and other hurdles

The first collision between dreams and reality occurs at the immigration office. An American without additional citizenship in a European country can only stay in the Schengen Area (a collection of countries that covers most of Europe) for 90 days out of a 180-day period. Unless you plan on buying a home just for vacation (more on that later), you’ll need a visa.

You can qualify for a visa through work in another country or family connections (I’m married). Some countries offer visas for skilled job seekers, remote workers who meet income requirements, or large investors, but so-called “golden visas” for property buyers may not be available for long. there is.

While there are some commonalities and agreements between governments, “each country has different laws and each country does business differently,” said Zola, chair of the National Association of Realtors’ Certified International Real Estate Specialist Advisory Group. says Cherenthes. The type of visa, its validity period, and the eligibility requirements vary each time you cross the border. Also, some countries (such as Switzerland) may have restrictions on where foreigners without certain visas can buy a home.

However, the one thing that remains the same is the deadline for submitting documents. Depending on the visa you’re seeking, you may need everything from a birth certificate, marriage certificate, labor contract, and proof of clean criminal records. “Not only do you have to find these documents, but you also have to get new ones printed from the state and town, and have them sent to you to get certified. And it’s just a nightmare,” she said when she rented an apartment in Spain in 2019. says purchaser Melissa Hughes. Therefore, it is important to know what you need in advance.

Find a real estate agent who can help you

As more Americans buy in Europe, many real estate companies are now available to provide advice on visas, banking, and other formalities.

“Americans currently make up the largest proportion of our international clients,” says Callum Neale, manager of Leggett International Real Estate, based in Sainte-Foy-la-Grande, France. he says. “[Our] The headquarters did a lot of research and assistance in finding a financial institution that could help with the US dollar transfer, and ultimately looked into the possibility of a bank loan. ”

The National Association of Realtors has a database of international certified real estate agents listed by location and specialty. (Certified real estate agents who operate overseas are identified by the letters CIPS.) By working with a U.S.-based real estate agent who has expertise in your desired country, you can receive “the same level of service and the same level of service.” We can hope for understanding. Cherenthes said they are buying domestically.

Neal’s company hosts webinars specifically for U.S. buyers, where real estate agents, locals, and financiers ask questions from Americans interested in moving to France (life is really “Emily in Paris”). etc.).

While viewing homes virtually is easier than ever and many agents are offering Zoom walkthroughs, we recommend that you visit anything you’re planning to buy in person (especially if you’re on vacation at the same time). (because it can be removed).

“You can’t see everything in the picture,” says Neil. And not everyone can stage a home the way American buyers are used to. As such, some international properties require more imagination to realize their full potential. “The first house I sold by myself” [in France]Flowers, gentle music, soft lighting, baking, and the house sold on the first visit and that’s what I did,” he says. “But that’s very rare. It’s not done here.”

Navigate financing and closing

Once you’ve found a place you like, the next step is usually financing (if you’re planning to buy with cash, you’ll need to look into the property and wealth taxes in your new country…but again, If you can buy with cash, you probably already know how to deal with tax laws). Certain new developments may be built specifically for foreign residents, and financing may be managed through the developer, Cherenses said. However, you generally need to hire an intermediary and a bank to get a mortgage. Just like in the US, your international real estate agent will be able to introduce you to a mortgage broker and help you open a local bank account.

Loan and bank account regulations vary by country, as do visa requirements. Neil said that in France, monthly income is more important than total assets for most buyers to get approved for a mortgage. “We have people who have quit their jobs, sold their homes and moved away…and they say, ‘Look, we have a lot of money,’ but that’s not how the system works here per se,” he says. . he says.

Even if you don’t need a loan, having a bank account in your country can save you expensive (and slow) transfers.

Attorney fees and additional charges may also be required upon final purchase. In many countries, a notary public will manage the sale for both parties, including overseeing contracts and checking liens. In France, for example, notary fees can amount to about 7.5 percent of the sale price, including taxes, Neal said. The exact details of these fees vary by country and agency. This is another area where your agency can provide location-specific guidance to avoid unwanted surprises.

As in the United States, the spending doesn’t stop after the paperwork is signed. You have to pay taxes in two countries. Insurance requirements vary by region, and you may be eligible to join the national health system. If you plan on hiring workers to maintain your home while you are away, check the rates, as labor costs can be more expensive in other countries. Also, if you are thinking of renting out your European home, check if it is allowed according to local regulations before you buy.

Before planning a purchase or move abroad, it’s worth asking yourself a few questions as well. “Over the years, I’ve had a lot of people come in and say they’re thinking of buying something. The question I always ask them is: How much time do they really want to spend there?” says Katherine Severo. I had a home in France for many years, so it was helpful for my own relocation. “Because owning real estate is like owning real estate in America. You have to make sure the bills are paid, the grass is mowed, and the rooms are painted.”

Romantic visions of expat life usually don’t involve weighing up vacuum cleaners or sitting with a dictionary and a list of rules to start recycling paper. But it’s worth taking the time to see if your desire for adventure will outlast a monotonous job. Neil advises, “Wait three months.” “Please live with us.”