Legitum
Buying property in Europe may seem like a golden opportunity — whether it's a retirement home in Portugal, an apartment in Berlin, or a rental investment in Spain. But beneath the picturesque listings and promising agents, there are legal landmines that can turn your dream into a legal battle. Understanding the legal framework is not optional — it’s essential.
Misunderstanding Local Ownership Laws
Each EU country has its own property laws. Some restrict foreign ownership, others have specific zoning limitations or require pre-approval for non-EU buyers. Without a local legal advisor, you're buying blind.
Failing to Verify Title and Encumbrances
Many buyers assume that the land registry reflects clear title. But hidden debts, inheritance claims, or prior court cases can cloud the ownership. In some jurisdictions, notaries don’t verify title unless requested. Legal due diligence is essential before signing anything.
Ignoring Inheritance and Succession Law
In civil law countries, like France or Spain, forced heirship may override your will. Your spouse may not automatically inherit your property. Without proper estate planning and understanding local rules, your asset may be distributed against your wishes.
Misunderstanding Tax Obligations
Real estate ownership often comes with property taxes, wealth taxes, or capital gains taxes upon sale. Many buyers fail to register with local tax authorities or file mandatory declarations. EU cross-border taxation can be complex — expert planning is key.
Overpaying Agents or Intermediaries
Foreign buyers are frequently charged inflated prices by unscrupulous agents. In some cases, sellers and agents collude to inflate the value. Working with independent, licensed professionals (and a lawyer who represents only you) is crucial.
Conclusion
Europe offers amazing real estate opportunities — but only if approached with legal precision. Legitum helps clients avoid the common traps and structure property deals that are secure, tax-efficient, and future-proof.