Investing in international real estate is one of the most solid strategies to diversify wealth, generate passive income, and obtain tax or migration benefits. In 2024, the global real estate market exceeded USD 280 billion in cross-border transactions, according to CBRE, reflecting growing investor interest in countries across Europe, the Americas, and Asia. This article provides a practical and detailed guide on how to acquire properties abroad, with the expertise of Orience as a strategic partner.
1. Define the goal of your investment
The first step is to establish the purpose of the purchase. Some options include:
- Generate rental income: properties for short-term or long-term rentals.
- Residency or citizenship: investment programs in countries like Portugal, Greece or Malta.
- Diversification: expand your portfolio across different currencies and markets.
- Capital appreciation: acquire properties in emerging cities with growth potential.
2. Select the right country and location
Factors such as economic stability, migration policies, taxes, and tourism demand should be carefully evaluated. For example:
- Spain: one of the most popular destinations, with a vacation rental market that grew by 12% in 2023, according to Statista.
- Portugal: remains attractive despite the end of the Golden Visa, with Lisbon and Porto among the most sought-after cities.
- Greece: tourism boom (32 million visitors in 2023) drives investment in islands like Crete and Santorini.
3. Legal and tax advisory
Each country has different legal requirements. It is essential to have experts familiar with the regulatory frameworks to:
- Verify property ownership and absence of encumbrances.
- Analyze fiscal and residency due diligence.
- Optimize tax liability using double taxation treaties.
4. Investment financing
Many countries offer access to international mortgages, although with stricter conditions for foreigners. According to Deloitte, around 25% of international real estate investments in 2024 were financed. Orience assists in identifying banks and entities specializing in cross-border loans.
5. Required documentation
Some of the most common documents include:
- Valid passport.
- Certificate of tax residency.
- Proof of funds (bank or asset statements).
- Incorporation documents if purchasing through a company.
6. Step-by-step purchase process
a) Reservation and preliminary contract
A preliminary agreement is signed with an initial deposit, typically between 5% and 10% of the property value.
b) Due diligence
Lawyers review the legal property documentation, verifying encumbrances, taxes, and permits.
c) Public deed
The transaction is formalized before a notary or relevant registry, with official translation if needed.
d) Registration and ownership
The property is registered at the relevant country’s land registry.
7. Property management
Once acquired, management is key to maximizing benefits. In Spain, for example, vacation rentals generated over EUR 7.5 billion in 2023, according to Exceltur. Orience offers comprehensive management solutions to ensure occupancy, profitability, and regulatory compliance.
8. Risks and how to minimize them
Main risks include:
- Exchange rate fluctuations: can impact net profitability.
- Regulatory instability: changes in residency or tax policies.
- Saturated markets: excess supply in highly touristy destinations.
With proper planning and Orience’s guidance, these risks can be efficiently mitigated.
9. How Orience facilitates your investment
At Orience, we provide a turnkey service, including:
- International market analysis.
- Property search
- Property search according to your objectives.
- Specialized legal and tax advisory.
- Visa and residency program management linked to your investment.
- Property management to maximize returns.
Frequently Asked Questions
Can I obtain residency by purchasing an international property?
It depends on the country. In Portugal and Greece, programs grant residency through real estate investment. In Spain, although the Golden Visa was canceled in 2024, new pathways are being studied.
What taxes do I pay on an international property?
It varies by country, but usually includes transfer taxes, notary and registration fees, plus potential taxes on rental income or capital gains.
Is it better to buy personally or through a company?
It depends on the investor’s profile and tax implications. Orience analyzes each case to recommend the most efficient option.
Which countries offer the highest real estate returns?
According to Knight Frank, markets like Lisbon, Athens, and Dubai offer annual rental returns between 5% and 7%.
How long does the complete purchase process take?
On average, 1 to 3 months, depending on the country and legal complexity.
Conclusion
Purchasing international properties is a unique opportunity to diversify investments, generate income, and access migration benefits. With the expertise of Orience, investors can navigate the process securely, minimizing risks and maximizing investment returns.