Buying a holiday property in another country is one of those decisions that sounds simpler than it actually is. Most buyers focus on the obvious factors like sea views, proximity to the beach, and the asking price. What they often miss are the structural details that determine whether the property turns out to be a great long-term decision or an expensive mistake. After speaking with several international property advisors over the past year, I have compiled the seven checks that matter most.
1. Verify the property’s legal title
Many older houses across the Mediterranean coast, France, Italy, and Spain include outbuildings, terraces, or pool installations that were added at some point without proper planning permission. These additions can become serious problems when you try to insure the property, rent it out, or sell it on. Before signing anything, your independent lawyer should run a complete title check including any unauthorised structures.
2. Check the rental licence situation
If you plan to rent the property when you are not using it, this is the single most important factor. Many regions have introduced strict short-term rental restrictions over the past three years. The Balearic Islands of Spain, parts of Portugal, and several Italian regions now require specific tourism licences that are difficult to obtain. Properties that already hold valid rental licences trade at significant premiums for this reason.
3. Understand the local property tax structure
Property taxes outside your home country often work very differently from what you are used to. Spain charges non-resident income tax even if you do not rent the property out. Italy has IMU and TASI. Portugal has IMI. France has taxe foncière and taxe d’habitation. None of these are huge individually, but if you do not budget for them, they accumulate into uncomfortable surprises.
4. Get a structural survey from a local engineer
Surveys are standard practice in many countries but routinely skipped by international buyers because the local culture in some Mediterranean countries does not emphasise them. Skip the survey and you may inherit problems with damp, structural movement, or outdated electrical wiring that cost tens of thousands to fix. The few hundred euros a survey costs is the best money you will spend in the entire transaction.
5. Research the area in two different seasons
A coastal village in August feels completely different from the same village in February. Many vacation property buyers fall in love with a location during summer and discover after closing that the area is essentially empty for eight months of the year. Conversely, some areas that feel quiet in winter become impossibly busy in summer. For Mediterranean destinations specifically, this analysis of Northern European buyers provides good context on how seasonal patterns affect decision-making for serious investors.
6. Budget for closing costs of 8 to 13 percent
Closing costs vary by country but are almost universally higher than buyers expect. In Spain, expect 8 to 13 percent on top of the purchase price covering transfer tax, notary fees, registry fees, and legal fees. In Portugal, expect 6 to 10 percent. In Italy, it can reach 12 to 15 percent for non-residents. Failing to budget for this is the most common cause of last-minute deal collapse.
7. Use an independent attorney, not the seller’s recommendation
The single most important rule of international property purchase. The seller’s lawyer represents the seller’s interests, regardless of how friendly they seem. Hire your own independent attorney with specific experience in cross-border property transactions in the country you are buying in. Cost typically runs about 1 percent of the purchase price. Worth every cent.
Final thought
Buying a vacation property abroad can be one of the most rewarding decisions you ever make, or one of the most frustrating. The difference almost always comes down to preparation. The buyers who treat the process carefully, walk away with a property they love. The ones who rush, find themselves wishing they had done more homework. For more background on Mediterranean destinations specifically, the Wikipedia entry on Ibiza gives a good factual overview of the island that many international buyers consider.
