Buying an apartment as a non-resident – a step-by-step guide

Buying a Property Abroad as a Non-Resident – Step by Step Guide

Purchasing a home outside Poland is a dream for many who wish to invest in real estate or relocate to another country. However, acquiring property as a non-resident involves various formalities that differ from those in the domestic market. To avoid surprises, it is worth understanding the entire purchasing process step by step and preparing both legally and financially.

Choosing the Location and Understanding the Market

The first step is selecting a location and familiarizing yourself with the local real estate market. Foreign properties vary in price, quality of finishing, and availability of financing. For many, it is important to gain a clear understanding of the types of apartments and houses available in the chosen country. Listings from different countries can be found on Immo Rapid, offering a wide range of international properties suited to various budgets and needs. This serves as a great starting point for comparisons and understanding the possibilities of the local market.

Checking Legal Regulations

Once a location and property type are chosen, the next step is to review the legal regulations. The procedure for non-residents to purchase property varies depending on the country. In some countries, foreigners can buy property without restrictions, while in others, a special permit from a ministry or land office is required. At the outset, it is advisable to consult a local lawyer to confirm which rules apply.

Required Documents and Formalities

Essential transaction documents usually include a passport and, in some cases, a local tax identification number. In many countries, buying property abroad requires opening a bank account in the local market, where funds for the transaction will be transferred. Foreign-language documents may also require certified translation.

Preliminary Agreement and Property Reservation

The next step is preparing a preliminary agreement, which reserves the property and involves paying a deposit. In many countries, this agreement is signed in the presence of a notary. The contract specifies the transaction conditions, payment terms, and ownership transfer details. At this stage, initial tax obligations may arise, as some countries require payment of civil transaction taxes already during the reservation phase.

Finalizing the Transaction

The transaction is finalized when the notarial deed or equivalent document is signed in the local legal system, transferring ownership of the property. Before this, a lawyer or notary verifies the legal status of the property, ensuring it is not encumbered with a mortgage or other liabilities. This gives non-resident buyers confidence that their investment is secure.

Taxes and Maintenance Costs

Tax differences are another factor to consider. Property purchase taxes range from a few to several percent, depending on the country and type of purchase. In some countries, non-residents pay higher taxes than residents, especially if the property is treated as an investment rather than a primary residence. It is crucial to carefully analyze all costs, including property taxes and mandatory insurance, before signing a contract.

Financing for Non-Residents

Financing options for non-residents vary by market. Many banks provide mortgage loans to foreigners, though requirements are generally stricter than for residents. Often, a higher down payment of 20–50% is required. An alternative is cash financing, which avoids lengthy mortgage procedures but requires substantial upfront funds.

Property Registration

After the purchase, it is important to register the property in the local land and building registry. This serves as official proof of ownership, protecting the buyer's rights. In some countries, this registration is done automatically by the notary; in others, a separate visit to the office is required.

Summary

Buying property as a non-resident is a process that requires time, preparation, and professional support. With the right approach, you can minimize risks and enjoy investing in your dream location. If you are planning to start your search, explore the wide range of international properties available on Immo Rapid to find a home that meets your expectations.