Buying Property Abroad for the First Time: A Step-by-Step Guide

Buying property in another country is one of the most significant financial decisions many people make. The excitement of a new country, an investment opportunity, or a retirement home can make it tempting to move quickly — especially when a developer's sales team is in the room, the sun is shining, and the price seems too good to miss.

That urgency is precisely the moment to slow down. International property purchases fail — or cost buyers far more than anticipated — almost always for one of a handful of predictable reasons: inadequate due diligence on title, inappropriate legal representation, unfamiliarity with local purchase taxes, or insufficient understanding of off-plan risk.

This guide walks through the process step by step.

Step 1: Understand Why This Country Is Different from the UK

The UK has one of the world's most developed property registration systems. You can be reasonably confident that the property you are buying exists as described in the Land Registry, that the seller has the right to sell it, and that there are no hidden charges. That confidence is built on centuries of common law, a centralised Land Registry, and professional regulation of solicitors and surveyors.

Many popular destinations for British property buyers — Spain, Greece, Turkey, Thailand, Bali, Egypt, parts of Latin America — do not have comparable systems. Implications vary by country:

• Spain: foreigners can own freehold property, but there have been widespread issues with urbanisations (housing developments) built without proper planning permission, particularly in regions like Valencia and Andalusia. Properties have been demolished. The Land Registry is reliable but some older properties have inconsistencies.
• Greece: the Hellenic Cadastre (land registry) modernisation is ongoing — some rural properties are not yet fully registered. Archaeological and protected land overlaps can restrict building rights.
• Thailand: foreigners generally cannot own land freehold. Ownership is typically through condominium title (works well), long-term leasehold, or a Thai company structure (complex, legally uncertain). Any arrangement involving a Thai nominee shareholder is not legal.
• Indonesia/Bali: foreigners cannot own freehold land. Various structures exist (Hak Pakai, long leasehold, PT PMA company) — none are as straightforward as UK freehold ownership.
• Egypt: foreigners can own apartments in certain designated areas. Ownership of land is restricted. A formal quota system limits how many properties a foreigner can own.
• UAE: foreigners can own freehold in designated development zones (Freehold Areas). Leasehold and Musataha arrangements exist elsewhere.

Before proceeding, research the ownership structures available to foreigners in your target country. This affects everything — the security of your ownership, your ability to sell or bequeath the property, and your mortgage options.

Step 2: Engage Your Own Independent Lawyer

This cannot be stressed enough: never use the developer's or seller's lawyer. They act for the other side. Their job is to complete the transaction for their client — not to protect yours.

Your lawyer should be:

• Qualified and licensed in the country where the property is located — not a UK-based firm that "also handles Spanish property". You need someone with local court access and professional standing in the local bar.
• Independent — no financial or commercial relationship with the developer, agent, or seller.
• Able to advise you in English — not just translate documents, but explain the legal implications in language you understand.

Your lawyer's role includes:

• Conducting title searches (verifying the seller has legal ownership, free of charges, mortgages, or legal disputes)
• Reviewing the purchase contract before you sign anything
• Checking planning permissions and building licences
• Ensuring the property is registered at the local Land Registry (or equivalent)
• Advising on local taxes and fees payable on purchase
• Conducting the closing process

Legal fees vary significantly by country. In Spain, a lawyer typically charges around 1% of the purchase price. In some countries, notary fees are separate from legal fees. Budget for both.

Step 3: Conduct Title Due Diligence

Title due diligence is the process of verifying that the seller has clean, unencumbered ownership of the property, and that there are no outstanding issues that would affect your ownership.

Specific checks vary by country but typically include:

• Title search: a search of the land registry or equivalent to confirm the seller is the registered owner and that the property is free of mortgages, charges, or legal disputes.
• Planning and building permissions: are the structures on the property built with proper permission? In some countries (notably parts of Spain and Greece), properties have been built illegally or extended without consent. This can affect your insurance, your ability to sell, and in extreme cases can lead to demolition orders.
• Utility connections: are water, electricity, and sewerage connections legal and correctly registered?
• Community fees and charges: for apartments or properties on shared developments, are community charges up to date? In some jurisdictions, outstanding community debts transfer to the new owner.
• Outstanding taxes: are local taxes and property taxes up to date?

In off-plan purchases (see below), title checks focus on the developer's ownership of the land, their development licence, and their track record.

Step 4: Get a Survey

Outside the UK, independent property surveys are less commonly obtained than most British buyers expect — in some countries, they are virtually unheard of in the market. Do not take that cultural norm as a signal that surveys are unnecessary.

For an older property, an independent survey can reveal structural defects, damp, subsidence, poor construction quality, or unpermitted modifications that the seller has not disclosed. The cost of a survey is trivial compared to the cost of discovering major defects after purchase.

For new-build or off-plan properties, a snagging survey (inspecting defects in the finished construction) is valuable before completion.

Step 5: Understand the True Purchase Cost

The headline price is never the total cost. In most countries, purchase taxes, notary fees, registration fees, legal fees, and agent commissions (which may be paid by the buyer in some markets) add materially to the total outlay. Common total purchase costs above the headline price:

• Spain: typically 8–12% (ITP transfer tax or IVA for new builds, stamp duty, legal fees, notary).
• Greece: approximately 8–10% (transfer tax, legal fees, notary, agent commission if applicable).
• Portugal: approximately 5–8% depending on value and property type.
• UAE: typically 4–6% (DLD transfer fee 4%, agency fees, registration).
• Thailand: approximately 2–6% (transfer fee, specific business tax or stamp duty, withholding tax on the seller — often partly borne by the buyer in practice).

Ask your lawyer to produce a full estimated cost schedule before you commit.

Step 6: Off-Plan Purchases — The Additional Risks

Off-plan purchases involve buying a property from a developer before it is built (or during construction). They are common in UAE, Spain, Cyprus, Greece, and many emerging markets. The attraction is usually a below-market price in exchange for waiting time and risk.

Off-plan risks include:

• Developer insolvency: if the developer runs out of money before completing the project, you may lose your deposit. In some countries (notably the UAE and Spain, following legal reforms), developer deposits must be held in escrow and released in stages against construction progress — but enforcement varies. Verify the escrow arrangements before committing.
• Delayed completion: construction delays are common everywhere. Build delays of one to three years are not unusual; some projects are never completed. Ensure the contract specifies a long stop date and your rights on failure to complete.
• Specification changes: contracts should specify the finishes, materials, and fixtures in detail. Vague specifications allow developers to substitute lower-quality materials.
• Title risk: if the developer does not fully own the land, or if the development licence is subsequently revoked, your purchase is void. Your lawyer must confirm the developer's title and licences before you exchange contracts or pay any deposit.

Never sign a reservation agreement or pay any deposit before your lawyer has reviewed the documents and confirmed the basics.

Step 7: Mortgage Options

Mortgages for non-resident property buyers are available in many countries, but the terms are typically less favourable than those available to residents:

• Loan-to-value ratios are usually lower for non-residents (typically 50–70% for a non-resident vs 80%+ for a resident).
• Interest rates may be higher.
• Documentation requirements are more extensive — typically two to three years of income evidence, tax returns, bank statements.
• Currency risk: if you take a mortgage in the local currency and your income is in sterling, currency movements can significantly change the real cost of your debt.

In some countries (notably Spain and Portugal), international mortgage brokers can access a wider range of lenders than going directly to a local bank. For UAE, specialist Islamic finance (murabaha) structures are available alongside conventional mortgages.

Step 8: Currency and Timing

The exchange rate between sterling and the currency of purchase will significantly affect the total cost. For a £200,000 purchase in euros, a 5% movement in the EUR/GBP rate is £10,000.

Options for managing currency risk:

• Forward contract: lock in an exchange rate now for payment in the future. This removes uncertainty but also prevents you from benefiting if rates move in your favour.
• Limit order: instruct a currency broker to transact automatically when the rate reaches a target level.
• Spot transaction: buy currency at today's rate for immediate transfer.

Specialist currency brokers (rather than banks) typically offer tighter exchange rates and lower fees for large international transfers.

Step 9: Completion and Registration

Completion in most countries involves a notary or equivalent official who witnesses the transfer and ensures all taxes have been paid. After completion, the property must be registered in the local equivalent of the Land Registry. Your lawyer handles this — but check that registration is actually completed. It is not automatic in all jurisdictions and can take weeks or months. Until registration is complete, your ownership may not be fully protected.

After completion, ensure you update your insurance, connect utilities in your name, and register with local authorities as required.

Compliance Note

Property law, ownership rights for foreigners, taxes, and purchase procedures vary significantly by country and change regularly. This article provides general guidance only and does not constitute legal or financial advice. You must take local legal advice in the country where you are purchasing before committing to any transaction. The information in this article reflects the position as of 2026 and may not be current at the time you read it.

How Global Investments Can Help

Global Investments has helped clients purchase property in eight major markets across Europe, the Middle East, and Asia. We can introduce you to trusted local legal professionals, help you navigate the due diligence process, and ensure your international property investment is properly structured from a tax and estate planning perspective. Contact our team before you commit to a purchase.