Best countries in Europe to buy property

To prepare for retirement, to move abroad or simply to invest, with or without plans to rent the property out, or even to buy a second home: many buyers are taking the plunge. But how do you go about investing in property abroad and choosing the destination that suits you? In this article, we give you advice and information to help you decide.

Spain: a dynamic property market

According to the API, Spain's association of property agents, the typical foreign buyer of property in Spain is aged 45 to 64 with grown-up children and the financial means to consider a change of lifestyle.

The French are the second-largest group of foreign investors there after the British and just ahead of the Germans, and they come first in Catalonia. The region they favour is also the most expensive on the peninsula. In Barcelona, the most expensive city, the average price per square metre is €4,284. The average price in Catalonia is €2,544.

Madrid and the Spanish Basque Country are also popular, with prices of €2,544 and €2,519 per square metre respectively, while the national average is €1,530. It seems that the financial appeal tips the balance. Spain also offers foreign buyers attractive tax conditions, although less so than Portugal. Any tax gain from moving depends on your income and your country of residence.

The Mediterranean sunshine, the healthcare system, the transport links, the rich culture and landscapes, and the dynamic property market in Spain are also persuading many foreign buyers to take on this new project.

Portugal: tax appeal and quality of life

A favourable tax policy was introduced in Portugal to encourage foreigners to invest in property there. Under the non-habitual resident (NHR) status, foreign retirees could get tax advantages on their pension for 10 years (some pensions remained taxable in the country paying them).

This status was abolished for new applicants from 1 January 2024, with a transition period for some people who became resident in 2024. Beyond tax, the country has strong potential thanks to its low cost of living, quality of life, hospitality, the beauty of its towns and its coastline (both well preserved) and a very attractive property market!

Lisbon, Porto and the Algarve remain favourite spots for foreign buyers, and property prices there are rising fast.

Italy: the charm of the “dolce vita”

Italy also appeals to foreign property investors. The government has passed a law with tax advantages (notably for retirees, high earners and the very wealthy) to encourage them to settle there. The Italian property market has taken off in recent years, and it is still possible to buy at an affordable price outside the main cities.

After a dip in 2011 and 2012, the market is picking up again. With an average price of €1,737 per square metre in 2019, not all regions are equal. Some, such as Trentino, Tuscany, the Aosta Valley or Liguria, have a higher average of €2,200 per square metre, while others are much more competitive, with prices per square metre of around €1,000, such as Calabria, Umbria and Sicily.

Puglia has recently seen renewed interest from foreign buyers, with affordable prices, a mild climate and an authentic way of life.

Many investors buy property abroad for tax and financial reasons, for a change of lifestyle, a better quality of life and a better climate.

Other countries where you can buy abroad

Other destinations complete this ranking, such as Hungary, Germany, Switzerland and Ireland. Buying property in Europe is appealing and sometimes advantageous, but before you start, it is important to talk to professionals and research the market, the local rules and the procedures involved, to limit the risks and avoid disappointment.