Prices are rising, particularly in Lisbon and the country’s coastal regions. Home costs rose by an average of 9.1% – a pace that outstripped much of Europe and placed Portugal firmly in the spotlight for both domestic and international buyers.

The capital remains Portugal’s powerhouse, drawing in younger local buyers supported by government incentives and foreign investors attracted to its cosmopolitan lifestyle. Coastal areas such as the Algarve and Cascais retain their long-standing appeal, offering beaches, international schools and rental potential.

But you can use this information to your advantage.

Prices jumped in Portugal in 2024, but that doesn’t mean you should avoid the country

Lisbon – a market of prestige

Lisbon remains the beating heart of Portugal’s property market, according to the latest European property survey by the ERA group. In 2024, the capital represented nearly a third of total market value, with average prices around €362,040. Beyond the numbers, Lisbon’s position as the country’s cultural, political and financial centre explains its enduring appeal.

From the historic Alfama district to the riverfront developments of Parque das Nações, the city offers a diversity of property styles that continues to draw both local and international buyers. Demand is particularly strong for centrally located apartments with character, but modern new-builds and luxury penthouses are equally in focus for investors seeking steady rental returns.

For international buyers, Lisbon is both a lifestyle and investment choice. It offers access to international schools, transport links, and a thriving digital economy that attracts a younger, mobile population.

But with prestige comes a premium. Buyers must account not only for purchase price but also transaction costs, property taxes, and ongoing maintenance.

If you’re preparing to buy property in Portugal, factor in the costs of buying property in Portugal and always commission a detailed property survey in Portugal. In a fast-moving market like Lisbon, decisive action matters – but informed decisions will protect both your lifestyle goals and your investment for years to come.

The coastal squeeze

Portugal’s coast has long captured the imagination of overseas buyers. The Algarve, Cascais and other shoreline destinations offer sunshine, leisure, and an international community that makes settling in straightforward.

These coastal areas remain magnets for retirees seeking a relaxed pace of life, second-home buyers wanting year-round appeal, and investors looking for high rental demand. Even after the end of the Golden Visa programme, demand has not slowed – Brazilian, European and Angolan buyers remain active, with many purchases supported by mortgages.

In these coastal hotspots, however, the balance between supply and demand is under increasing pressure. Sea-view villas and modern apartments command strong premiums, and competition can be intense.

To succeed in these markets, preparation is essential. Buyers should review the potential pitfalls of buying property in Portugal and take time to understand the full impact of Portuguese property taxes. Strategic negotiation is part of the process, and knowing when to move quickly is just as important as knowing when to walk away. Before making an offer on a property in Portugal, ensure your financing is secure and your expectations realistic.

For an overview of what’s available, there’s a quick comparison below:

Notes: Lisbon average price sourced from the ERA Europe Market Survey 2024/2025. Coastal town pricing varies by micro-location, property type and condition – review current comparables and total acquisition costs before committing.

Regions of opportunity

Head inland or north and the value proposition changes dramatically. While Lisbon and the coastal zones dominate headlines, the North of Portugal quietly recorded more than 46,000 transactions in 2024 – the highest of any region. Average prices there remain far more attainable, at €181,080, and the region also delivered the country’s largest number of new housing completions.

For buyers, that means a rare balance of affordability and choice, with modern, energy-efficient homes entering the market alongside character properties in historic towns.

Porto and its surrounding municipalities are central to this story. The city offers all the energy of a major urban hub – international schools, universities, and a growing digital economy – yet at a fraction of Lisbon’s price point.

Buyers considering buying property in Porto gain access to a cosmopolitan centre that remains well-connected to Europe through its international airport. For those seeking leisure and investment returns, the nearby Douro Valley combines vineyard landscapes with boutique tourism appeal.

Further south, the Setúbal Peninsula and central Portugal present strong alternatives, offering more space and lower costs while still being within reach of Lisbon.

If budget is your guiding factor, Portugal continues to offer options that suit different stages of the buying journey. Our overview of affordable property in Portugal highlights towns and regions where prices remain accessible, from up-and-coming interior cities to villages attracting younger families and digital nomads.

Once you have a sense of your priorities – lifestyle, rental potential, or long-term investment – you can refine your search by property type, from traditional stone houses to contemporary apartments in new developments. Take a look at houses for sale in Portugal to see what’s available.

Porto is just one of the many beautiful places in Portugal you could call home

Financing and process – move quickly, but with structure

With prices still rising – and existing homes outperforming new builds in 2024 – the best-prepared buyers are the ones who secure their property of choice.

Being finance-ready is no longer optional, it is essential. That means having conversations early with a mortgage broker in Portugal, understanding what it takes to get a mortgage in Portugal as an international buyer, and mapping out the step-by-step process of buying in Portugal. With a clear financial framework, you will be in a position to act decisively when the right property appears.

Equally important is maintaining a balance between ambition and caution. Negotiating in Portugal can be an art, and rushing in without clarity on fees, taxes, and legal obligations can cause costly delays.

Practical resources such as our money-saving tips, guidance on the legal requirements of buying property in Portugal, and advice on completing your property purchase will help you keep momentum without missing critical checks. The goal is not just to move quickly, but to move with structure – ensuring your purchase stands on firm financial and legal ground while still capturing the lifestyle that drew you to Portugal in the first place.

Outlook – value is shifting, opportunity remains

Market activity is expected to stay lively in 2025, with sustainability and energy efficiency increasingly shaping demand. Affordability in Lisbon and coastal areas will remain a challenge, while peripheral and regional markets are positioned for steady growth – an advantage for buyers who are flexible on location.

If your priority is lifestyle, see our broader guides to why buy a property in Portugal and how to find property in Portugal. If you are planning a relocation, you may also want to explore visas & residency options for non-residents in Portugal and our complete guide to living in Portugal.

The post Portugal property prices surge but you can still find value in 2025 appeared first on Your Overseas Home.

If you’re moving overseas, Social Security doesn’t have to stop at the border. Most US citizens can keep their benefits with a few smart steps. Use the SSA screening tool, pick a secure payment route, update your details and understand the tax rules so your retirement income keeps pace with your new life.

Contents

• Can you receive Social Security abroad?
• Countries where payments are restricted
• Who counts as living “outside the United States”
• Best ways to get paid overseas
• Keep your details current
• Key forms you may need
• Tax: what to expect when you live abroad
• Six smart steps before you move
• Quick reference table
• Frequently asked questions
• Summary

Can you receive Social Security abroad

Yes – US citizens can usually receive retirement, survivor or disability benefits while living overseas. The Social Security Administration (SSA) provides a Payments Abroad Screening Tool that checks your specific situation by country and benefit type. It tells you if payments can continue indefinitely or if any limits apply.

Countries where payments are restricted

By US Treasury regulation, the SSA cannot send payments to residents of Cuba or North Korea. SSA policy also restricts payments to certain countries where banking and delivery aren’t considered reliable – currently Azerbaijan, Belarus, Kazakhstan, Kyrgyzstan, Moldova, Tajikistan, Turkmenistan, Ukraine, and Uzbekistan. If you relocate from a restricted country to one where delivery is permitted, payments can restart and – for US citizens – withheld payments are typically released.

Who counts as living “outside the United States”

If you are away for 30 days or more, you are classed as living “outside the US”

For SSA purposes, being abroad starts after 30 consecutive days outside the US or its territories. The SSA’s handbook explains how the clock is counted for time away and for returning presence in the US.

Best ways to get paid overseas

• Direct deposit to a US bank account – the most reliable option for many expats. You can withdraw locally via ATM, transfer money when exchange rates suit you or use a currency specialist to manage larger transfers.
• Direct deposit to a foreign bank – possible in many countries participating in SSA’s international direct deposit programmes. Check availability via the screening tool and confirm fees with your bank.
• Paper cheques – permitted in some places but not advised due to mail delays, theft risk and slow replacements. It’s much better to choose electronic delivery wherever possible.

Keep your details current

When you live abroad, the SSA will send you periodic questionnaires to confirm that you are still eligible for benefits. If you don’t reply, payments can be suspended. Update addresses promptly and consider secure mail options if your local postal service is slow. Start with the My Social Security portal or contact your nearest Federal Benefits Unit.

Tax: what to expect when you live abroad

Social Security benefits can be taxable at the federal level depending on your combined income. Up to 85% of your benefits may be subject to US federal income tax once you cross low thresholds – $25,000 for individuals and $32,000 for joint filers. See the SSA’s guidance “Must I pay taxes on Social Security benefits?”. Your country of residence may also tax Social Security. Check local rules and any US tax treaty provisions. Many Americans abroad file US tax returns each year to report their worldwide income, including Social Security.

Six smart steps before you move

1. Run the SSA screening tool to confirm your destination allows payment and to see any country‑specific caveats.
2. Choose your payment route – US direct deposit suits many expats; international direct deposit can be convenient if available in your new country.
3. Notify SSA of your overseas address and set up reliable email and phone contacts.
4. Plan your currency strategy for regular transfers from your US account to your local account. Small fees add up.
5. Understand your tax position – model US tax on your benefits and any host‑country tax. Consider quarterly estimated payments if needed.
6. Keep documents handy – passport, SSA award letter, bank details and contact information for your nearest US Embassy or Federal Benefits Unit.

Quick reference table

Frequently asked questions

Will my benefit amount change just because I move

No – your basic benefit formula doesn’t change when you live overseas, but currency swings can change how much hits your local account. If you qualify for cost‑of‑living adjustments, they still apply worldwide.

Can my payments stop if I don’t reply to SSA letters

Yes. If SSA cannot confirm your address or ongoing eligibility, it can suspend payments. Keep your contact details current and respond quickly to any questionnaires.

What if my destination is on the restricted list

You won’t receive payments while resident there. However, in many cases, withheld payments become payable once you’re in a country where delivery is allowed – check your case with the Federal Benefits Unit.

Summary

You can keep collecting US Social Security while you are overseas. Use the SSA screening tool, avoid restricted countries, choose secure direct deposit, keep your details up to date and plan for US and local tax. With a little admin and forward planning, your benefits can follow you to your new life abroad.

You might also like:

• What taxes do US citizens pay on overseas property?
• Fastrack your overseas move with these top tips for selling your home! 
• Property scams abroad: how to spot them and stay safe 

The post How to claim Social Security payments when living abroad appeared first on Your Overseas Home.

Healthcare might not be the most exciting part of your move abroad, but it’s one of the most important. Imagine settling into your new home, only to face a sudden illness and a health system you barely understand – along with bills you didn’t expect. The good news is, if you’re eligible, the UK’s S1 form can help you access state healthcare in your new country, often saving you thousands. For retirees, cross-border workers and certain other applicants, it’s a lifeline – but only if you apply early, know the rules and prepare for the costs that aren’t covered.

Contents

• What is the S1 form?
• Who can apply for an S1?
• How to apply for an S1
• Do you still need health insurance while living abroad?
• Common mistakes to avoid
• What if you split your time between countries?
• Changes in circumstances
• Why healthcare planning brings peace of mind
• FAQs

What is the S1 form?

The S1 is a certificate issued by the UK that allows certain people to register for state healthcare in another EU or EEA country (and Switzerland), with the UK covering the costs. It’s most commonly used by retirees receiving a UK state pension, but also applies to some workers who live in one EU/EEA country and work in another.

Rather than paying twice – once in the UK and again in your new country – the S1 ensures your healthcare funding follows you. Once registered locally, you’ll access healthcare just like residents, though each country’s system works differently from the NHS.

Who can apply for an S1?

You may be eligible for an S1 if you:

• Receive a UK state pension
• Receive other UK benefits while on maternity, paternity or adoption leave in another country
• Are a cross-border worker (live in one EU/EEA country and work in another)
• Are a posted worker sent abroad temporarily by a UK employer

Your dependents may also qualify for the S1. You’ll need to apply for this via form CA8454.

If you’re not yet drawing your state pension or if you’re on certain visas such as golden visas or digital nomad visas, you’ll usually need private health insurance instead.

How to apply for an S1

You apply through the Overseas Healthcare Services at the NHS Business Services Authority, either by phone (0191 218 1999) or email (s1applications@nhsbsa.nhs.uk).

Once you’ve received the form, take it to your local authority in your new country to register. This step is essential – until you’re in the local system, your healthcare isn’t covered.

Do you still need health insurance while living abroad?

It’s wise to have private health insurance while you’re waiting for S1 coverage to come through

That depends on what visa you are moving abroad on. For example, for Spain’s non-lucrative visa and Italy’s elective residence visa, retirees need to show that they have health insurance when they apply for the visa.

Even if your visa doesn’t require you to have health insurance, in most cases, it’s best to have it anyway. “For a retirement visa in France, British people don’t need health insurance if they use an S1 form,” explains Marianne Lehmann from Fab French Insurance. “But while it’s not mandatory, most people prefer to have some kind of private health insurance, as it can take some time for the S1 to be registered once in France. So they might opt for shorter terms such as six-month plans, for example.”

Speak to Fab about their policies

So, even if you plan to use the S1 later, you will need to have health insurance first and for the first year or so. You can then register for the state healthcare via the S1 form, and your medical expenses will be paid by the UK. In Spain you just register at your local medical centre to get your Spanish ‘SIP’ card, which is a card to access the public healthcare system.

However, it’s important to note that the S1 does NOT make you an NHS patient overseas. It gives you healthcare on the same basis as local people. So if they pay €20 to €30 for a GP appointment, so will you. Not everything may be free at the point of delivery, as in the UK. In France the state will normally only pay around 70% to 80% of your expenses and you will have to pay the rest yourself. You can also pay for top-up insurance, such as the mutuelle in France.

If you are living overseas on a different visa, such as a golden visa or a digital nomad visa, again you will need private insurance for the application. The S1 only applies if you are receiving a UK state pension, but you can be receiving this while still working remotely for UK companies in semi-retirement.

There may be grey areas where one partner is working and the other is not, or one is over retirement age and the other is not, in which case it is always recommended to pay for the insurance.

If working on a normal working visa overseas you will be paying into the local state tax system and so should be covered for health.

Common mistakes to avoid

• Leaving your S1 application until after you move – processing can take weeks or months, leaving you without state healthcare during that time and potentially relying on costly private cover in the meantime.
• Assuming all healthcare is free – most EU/EEA countries have co-payments for certain treatments, prescriptions or specialist visits, even when you have an S1, so factor these into your budget.
• Not budgeting for top-up insurance – in countries like France, the state may only cover 70-80% of costs; a mutuelle or other supplementary plan can significantly reduce your out-of-pocket expenses.
• Forgetting to re-register if you move regions – in many countries, your S1 registration is tied to your local health authority, so moving house can mean re-registering to maintain your entitlement.

What if you split your time between countries?

You must register your S1 in your country of permanent residence. Short stays elsewhere in the EU may be covered by your UK-issued EHIC or GHIC.

Changes in circumstances

If you start work locally or stop receiving a UK pension, your S1 entitlement may change. Be sure to keep the Overseas Healthcare Services updated.

Why healthcare planning brings peace of mind

The S1 isn’t just a form – it’s your assurance that you’ll have access to affordable, reliable healthcare abroad. For retirees, that means enjoying your new lifestyle without fear of unexpected bills. But like any part of moving abroad, it works best when you know the rules, act early and prepare for the gaps.

Spanish lawyer, Raquel Perez from Perez Legal Group advises UK citizens to ensure they stay up to date with official government information. “It’s always best to make sure you have the most up-to-date information from a reputable source before making any decisions about your healthcare provision,” she says.

FAQs

Can I apply for an S1 if I’m not yet retired?

Yes, if you’re a cross-border or posted worker or you receive other UK benefits while on maternity, paternity or adoption leave in another country.

Does the S1 cover dental care?

Dental cover varies by country. In France, for example, some dental work is partially reimbursed; in Spain, much is private.

Will the S1 give me faster treatment?

No – you’ll join the local healthcare system and wait like any other resident.

Do I need a GHIC if I have an S1?

Yes – your GHIC covers temporary stays in other EU countries, but your S1 covers you in your country of residence.

What happens if I move to another EU country?

You’ll need to reapply and register your S1 in your new country of residence.

You might also like:

• How to enjoy your retirement overseas
• UK’s inheritance tax incentive to move overseas
• Make your overseas property plans happen in 2025 – here’s how

The post How to get healthcare overseas – your guide to the S1 form appeared first on Your Overseas Home.

If you’re on holiday right now and are tempted to pack some title deeds in your hand luggage before heading home, according to the property experts these are the best seaside resorts to buy a home this summer.

Contents

• Tropea, Calabria, Italy
• Castiglione della Pescaia, Tuscany, Italy
• Rethymno, Crete, Greece
• Lagos, Algarve, Portugal
• Calheta & Ponta do Sol, Madeira, Portugal
• Viana do Castelo, Norte, Portugal
• Rovinj, Istria Peninsula, Croatia
• Protaras, East Coast, Cyprus
• Biarritz, Anglet and Bayonne, Nouvelle-Aquitaine, France
• La Baule-Escoublac, Loire Atlantique, France
• Menton, Alpes-Maritimes, France
• Stockholm Archipelago, Sweden
• Estepona, Costa del Sol, Spain
• Orihuela Costa, Southern Costa Blanca, Spain
• Santa Eulària des Riu, Ibiza, Spain
• Los Alcazares, Costa Calida, Spain
• Castellón Coast, Costa Azahar, Spain
• Kalkan, Antalya Province, Turkey
• St Julian’s, Malta
• Kinsale, County Cork, Ireland

Tropea, Calabria, Italy

Tropea is a spectacular seaside town perched atop limestone cliffs on the Tyrrhenian Sea in southern Italy’s Calabria region. Its medieval old town, filled with narrow alleys, Baroque churches and sun-drenched piazzas, overlooks soft sandy beaches and crystal-clear turquoise water.

Often dubbed “the Amalfi Coast without the crowds,” Tropea combines southern charm, dramatic scenery, and real Italian authenticity, with far less tourist traffic and far more value for money. The area is increasingly on the radar for international buyers and digital nomads, drawn by its affordability, local cuisine (including the famous red onions!), and a lifestyle that blends beach days with mountain excursions.

With over 300 days of sunshine a year and recent improvements in local infrastructure, Tropea is no longer just a hidden gem, it’s a rising star in Italy’s second-home market.

Tropea, Calabria, Italy

Buying property in Tropea

Focus on the historic centre for character-filled apartments with balconies and sea views. The Marina district offers newer homes with beach access, while Capo Vaticano (ten kilometres away) has villas with panoramic coastal views.

Sensible budgets:
This is an affordable coastal market. Two-bedroom apartments start from around €130,000; detached homes and sea-view villas from €250,000.

Check out some properties for sale in Calabria.

Getting there:
Tropea is about one hour from Lamezia Terme International Airport, with direct flights from across Europe. There’s also a regional train line linking Tropea to major Calabrian cities and the north of Italy.

Castiglione della Pescaia, Tuscany, Italy

Located on Tuscany’s southern coast in the Maremma region, Castiglione della Pescaia is a perfectly preserved seaside town that blends medieval beauty with beachside elegance. Its historic hilltop centre, complete with cobbled streets and a 15th-century fortress, overlooks a modern marina, pine forests, and one of Italy’s cleanest stretches of coastline, repeatedly awarded Blue Flag status.

The town is a favourite summer escape for wealthy Romans and Milanese families, yet it remains relaxed, authentic, and wonderfully liveable. It offers a mix of stylish beach clubs, local markets, walking and cycling trails, and proximity to natural parks like the Parco della Maremma.

With its balance of cultural charm, excellent beaches, and proximity to wine estates and thermal spas, Castiglione della Pescaia is an exceptional destination for buyers seeking laid-back Tuscan luxury by the sea.

Castiglione della Pescaia, Maremma, Tuscany

Buying property in Castiglione della Pescaia

Look in the medieval upper town for views and charm, the marina and beachfront area for walkability, or just outside town in Punta Ala or Roccamare for secluded villas and private beaches.

Check out some properties for sale in Tuscany.

Sensible budgets:
This is a premium area. Two-bedroom apartments start around €250,000; detached villas in Punta Ala or Roccamare from €500,000+.

Getting there:
The town is about 1 hour 45 minutes from Pisa International Airport, and two hours from Rome Fiumicino. The nearest train station is Grosseto, 25 minutes away by car.

Rethymno, Crete, Greece

Set on Crete’s northern coast, midway between Chania and Heraklion, Rethymno blends golden beaches, Venetian architecture, and a relaxed, year-round lifestyle. The town’s old quarter is a beautiful maze of alleyways, pastel façades, fountains, and vibrant cafés — all overlooked by a 16th-century fortress. Its long, sandy beachfront stretches for miles, with calm waters and a lively promenade.

Despite being Crete’s third-largest town, Rethymno feels intimate and walkable. It’s popular with expats, digital nomads, and second-home owners seeking authenticity, affordability, and a slower pace of life. The surrounding hills offer olive groves, mountain villages, and historical monasteries, perfect for weekend exploration.

With good local healthcare, universities and businesses open even in winter, Rethymno is as much a liveable destination as it is a holiday escape.

Rethymno, Crete

Buying property in Rethymno

Explore the Old Town for charm and culture, or the seafront promenade for modern apartments. Nearby villages like Adele, Platanes, and Atsipopoulo offer peaceful, authentic alternatives just a short drive away.

Sensible budgets:
Rethymno is relatively affordable. Two-bedroom apartments start from €150,000; stone houses or villas nearby from €250,000.

Getting there:
Rethymno is about one hour from both Chania Airport (to the west) and Heraklion Airport (to the east), both with international flights. Ferry routes connect to Athens from nearby ports.

Check out some properties for sale in Rethymno

Lagos, Algarve, Portugal

Lagos is one of the Algarve’s most vibrant and scenic seaside towns, offering a blend of dramatic cliffs, sandy beaches, cobbled streets, and a lively marina. Located in the western Algarve, it has a rich history dating back to the Age of Discovery, visible in its 16th-century walls and forts.

The town is popular with international buyers thanks to its year-round sunshine and friendly expat community. You can be meeting friends in its excellent restaurants, one of its nearby golf courses or on the new padel courts that are taking expat heartlands by storm.

For even more high-octane thrills, surfing, sailing, dolphin watching and hiking are all on offer nearby, especially along the breathtaking Ponta da Piedade coastline.

Unlike some Algarve resorts that shut down in winter, Lagos maintains a lively atmosphere year-round, making it ideal for both holiday homes and permanent relocation. Its mix of Portuguese authenticity and modern comfort gives it enduring appeal for all ages.

Camilo Beach in Lagos, Algarve

Buying property in Lagos

Look in Porto de Mós for sea-view villas, Meia Praia for modern apartments near the beach, or the historic town centre for charm and walkability. Albardeira offers quiet, residential villas just outside town.

Sensible budgets:
Mid-to-upmarket. Two-bedroom apartments from around €250,000; detached villas with pools from €500,000.

Check out properties for sale in Lagos.

Getting there:
Lagos is about one hour from Faro Airport by car. There’s also a regional train connection from Faro via Tunes. Lisbon is three hours away by car or train.

Calheta & Ponta do Sol, Madeira, Portugal

Tucked into Madeira’s sunny southwest coast, Calheta and Ponta do Sol are two of the island’s most sought-after seaside spots for those seeking peace, natural beauty, and ocean views, without the bustle of Funchal.

Calheta is home to one of the island’s only sandy beaches (imported from Morocco), a sleek marina, and a growing scene of modern holiday villas tucked into the hillside. It offers restaurants, a supermarket, and cultural venues like the Casa das Mudas art centre.

Just 15 minutes away, Ponta do Sol is a picture-postcard village known for its cliffside setting, charming main square, pebble beach, and famously sunny microclimate. It’s a favourite among both retirees and remote workers, thanks to its tranquil atmosphere and creative community. Both towns are surrounded by lush valleys and levada hiking trails, offering an ideal blend of sea and nature, all within 30 minutes of Funchal.

The village of Estreito da Calheta

Buying property in Calheta & Ponta do Sol

In Calheta, explore the hills above Prazeres, Arco da Calheta, or Estreito da Calheta for villas with panoramic sea views. In Ponta do Sol, focus on the town centre or the nearby hills of Canhas for a more traditional village setting with easy coastal access.

Sensible budgets:
Still more affordable than mainland coastal resorts. Two-bedroom apartments start around €200,000; sea-view villas with pools from €400,000.

Getting there:
Both towns are roughly 45 minutes from Madeira Airport by car. The Via Rápida highway connects them directly to Funchal and the east of the island. No ferry needed — everything is on-island and easily accessible.

Check out properties for sale in Madeira.

Viana do Castelo, Norte, Portugal

Set at the mouth of the Lima River on Portugal’s Costa Verde, Viana do Castelo combines historic elegance, Atlantic beaches and spectacular green hills.

Its medieval centre is full of tiled mansions, baroque churches and sunny café-lined squares. Overlooking it all is the iconic hilltop basilica of Santa Luzia, with panoramic views across sea and forest. The town is well known for its strong cultural identity, from traditional gold filigree to colourful folk festivals. Surf beaches like Praia do Cabedelo attract water sports lovers, while nearby trails and nature reserves offer hiking and cycling.

An hour’s drive inland are the lovely cities of Braga and Guimaraes, and the Peneda-Gerês National Park.

Less touristy than the Algarve or even nearby Porto, Viana is a hidden gem — offering a slower pace, fresh seafood, and strong value for money, all within easy reach of major cities and airports.

Praia do Cabedelo, Viana do Castelo

Buying property in Viana do Castelo

Look in the historic centre for charming apartments, Cabedelo beach for surfside homes, or the hillsides of Santa Luzia for villas with sea views. Darque and Areosa offer good value and proximity to nature.

Sensible budgets:
This is an affordable area. Two-bedroom apartments start from around €160,000; detached homes with 3–4 bedrooms from €280,000.

Getting there:
Viana do Castelo is about 45 minutes by car from Porto Airport, or 1.5 hours by regional train. Lisbon is 4 hours away by car or intercity rail.

Check out properties for sale in Viano do Castelo.

Rovinj, Istria Peninsula, Croatia

Rovinj is a breathtaking Venetian-style port town on Croatia’s northwestern Istrian coast, often compared to Italy’s Cinque Terre – but with more space, better prices, and fewer crowds. Its old town rises in a jumble of pastel façades atop a peninsula, crowned by the baroque Church of St. Euphemia.

Narrow cobbled streets, working fishing boats, art galleries, and wine bars give Rovinj an intimate, timeless feel. The surrounding coast is dotted with pine-fringed beaches and quiet coves, while inland you’ll find vineyards, hill towns, and truffle-rich forests. It’s also known for excellent gastronomy and a strong Italian cultural influence.

With Croatia now in both the EU and Schengen Zone, buying and visiting are easier than ever – and Rovinj has emerged as a stable and desirable choice for lifestyle buyers and long-term investors.

Rovinj, Croatia

Buying property in Rovinj

The Old Town is full of charming, characterful apartments. Look in Borik or Centener for modern homes with sea views and easier parking. Rovinj South offers villas and quiet residential streets near beaches.

Sensible budgets:
This is an upmarket area. Two-bedroom apartments in the Old Town start from €250,000; sea-view houses or villas typically from €500,000+.

Getting there:
Rovinj is about 40 minutes from Pula Airport (with seasonal international flights), or two hours from Trieste (Italy). Car ferries and fast boats also connect Rovinj to Venice and nearby Croatian islands.

Protaras, east coast, Cyprus

Protaras is a sun-soaked resort town on the eastern tip of Cyprus, famed for its turquoise waters and soft sandy beaches — including Fig Tree Bay, regularly ranked among Europe’s best. It’s more peaceful and family-friendly than nearby Ayia Napa but still offers a lively summer scene with seafront restaurants, beach bars, and water sports. The area is modern and well-planned, with wide promenades, coastal walking trails, and excellent swimming conditions.

While primarily a holiday destination, Protaras is increasingly appealing for international buyers seeking a high-quality second home or rental investment in a safe, accessible location. The season is lengthening, infrastructure is improving, and Cyprus’s low taxes and English-speaking legal system make property ownership relatively straightforward. Plus, with the east coast’s dry, sunny climate, Protaras delivers a true Mediterranean lifestyle for much of the year.

White church on the shore in Protaras

Buying property in Protaras

Look near Fig Tree Bay and Pernera for easy beach access and amenities. Kapparis is quieter and more residential, while Paralimni (just inland) offers traditional village charm and better value.

Sensible budgets:
This is a mid-to-upmarket area. Two-bedroom apartments start from €160,000; modern villas with pools from around €350,000.

Getting there:
Protaras is about 45 minutes from Larnaca International Airport, Cyprus’s main travel hub. Well-maintained highways connect it to Limassol and Nicosia in under 2 hours.

Check out property for sale in Protaras.

Biarritz, Anglet and Bayonne, Nouvelle-Aquitaine, France

Nestled between France’s southernmost Atlantic coast and the Pyrenees the Bayonne–Anglet–Biarritz area offers an irresistible blend of history, surfing, architectural elegance and year‑round sophistication.Biarritz has long the playground of European aristocracy, with the likes of Queen Victoria a big fan, and the grandeur survives today with its Belle Époque palaces (like the Hôtel du Palais) and casinos.

Within walking distance of Biarritz is the suburb of Anglet, a world‑class surfing centre that takes advantage of the Atlantic rollers that almost seem to come into the town itself (indeed, on occasions they do!). Anglet is a long row of glorious sandy beaches backed by pine forests, among which are interspersed small housing developments and golf courses.

Within walking distance again is Bayonne, with a more traditional Basque vibe. It has half‑timbered houses painted in red and green lining the Nive river, narrow pedestrian lanes, a majestic Gothic cathedral and heritage architecture that’s a UNESCO gem.

Cote des Basques beach in Biarritz (JeanLucIchard / Shutterstock.com)

Buying property in Biarritz, Anglet and Bayonne

Anglet is a liveable little town, where architect-designed modern homes border golf courses. It’s super-handy for Biarritz Airport and with a lively indoor market. In Biarritz, top choices are seafront apartments or villas near iconic landmarks like the Hôtel du Palais or elegant districts such as Beaurivage and Saint-Charles. And in Bayonne the historic centre, with its Basque architecture and riverside outlook appeals for its cultural authenticity and more accessible pricing.

Sensible budgets: It’s not a cheap area, but you can find two-bedroom flats from around €250,000 and houses from €450,000. But this is a place where you can spend a lot of money.

Check out property for sale in south-west France.

Getting there: Couldn’t be easier, with Biarritz Airport right in the middle. If you choose the train, Biarritz is four hours from Paris.

La Baule-Escoublac, Loire‑Atlantique, Pays de la Loire, France

It’s the kind of French resort where, when you discover it, you wonder why everyone isn’t here. This glamorous slice of France’s Atlantic coast is home to La Baule’s nine kilometre sweep of fine golden sand, lined with Belle Époque villas, pine groves, seafood restaurants and luxury boutiques.

Le Pouliguen, just next door, offers a quieter harbour-town feel with a charming market, sheltered beaches and coastal walking paths. Both are part of the Loire-Atlantique region in western France, with strong Breton influence, mild oceanic climate and a laid-back yet sophisticated seaside lifestyle. It’s ideal for beach lovers, foodies and Francophiles wanting a classier, less crowded alternative to the Riviera.

La Baule Escoublac bay from Le Pouliguen

Buying property in La Baule

Look for classic villas or smart apartments near La Baule’s Benoît and Lajarrige districts, or the elegant Quartier des Oiseaux. In Le Pouliguen, the port area and coastline around Nau beach offer both charm and sea views. Nearby Escoublac also has newer developments.

Sensible budgets:
This is an upmarket area. Two-bedroom apartments start around €350,000; houses with three to four bedrooms from €650,000.

Check out property for sale in Pays-de-la-Loire.

Getting there:
La Baule has a train station with TGV connections to Paris (3h). The nearest international airport is Nantes, about one hour away by car or train.

Menton, Alpes-Maritimes, France

Menton sits at the very eastern tip of the French Riviera, right on the Italian border, blending the glamour of the Côte d’Azur with a more relaxed, garden-filled charm.

Known as the “Pearl of France,” it boasts pastel-hued Belle Époque buildings, subtropical botanical gardens and a fun cultural scene, including its famous Lemon Festival each February.

Sheltered by surrounding mountains, Menton enjoys a particularly mild microclimate, reminiscent of southern California with healthy average of around 316 sunny days per year making it ideal for year-round living. Even in winter time, the temperature is mild compared to many other parts of the French Mediterranean coastal area, protected as it is by the mountains.

You’ll find several beaches here, a pretty port and a working harbour with superb views out across the sea. You will also find excellent dining options and shopping in the wonderful market “Les Halles”. It is close to the Italian border, so a trip over there for lunch is something many visitors and residents do.

L’heure bleue in Menton

Buying property in Menton

The Garavan district is highly prized for sea views and proximity to the old port. Vieille Ville (Old Town) offers colourful, historic homes on narrow lanes. For something quieter, try Val de Gorbio or Terres-Chaudes, just inland but still walkable.

Sensible budgets:
Menton is upmarket. Two-bedroom apartments start from around €350,000; three to four bedroom houses typically from €700,000.

Getting there:
Nice Côte d’Azur Airport is just over 40 minutes by car. Frequent TER trains connect Menton to Nice, Monaco and Italy; high-speed TGVs via Nice link to Paris in under six hours.

Check out properties for sale in Alpes-Maritimes.

Stockholm Archipelago, Sweden

The Stockholm Archipelago is a vast, enchanting scatter of over 30,000 islands, stretching east from Sweden’s capital into the Baltic Sea. Just minutes from central Stockholm, this region offers a unique mix of raw Nordic nature and stylish Scandinavian living. Rugged coastlines, pine forests, wooden cottages and crystal-clear waters create the perfect backdrop for kayaking, sailing, swimming off rocky outcrops, or just unwinding in a sauna with a sea view.

Many islands are car-free, accessible by ferry or private boat, fostering a peaceful, off-grid lifestyle. Summers are golden and bright, while autumns and winters offer crisp, reflective beauty. For Swedes, this is the dream location for a summer house (or sommarstuga), and increasingly, international buyers are discovering its low-key charm and high quality of life — all within easy reach of one of Europe’s most liveable cities.

Wooden homes and boathouses on the Stockholm Archipelago (Nowaczyk / Shutterstock.com)

Buying property in the Stockholm Archipelago

Consider Vaxholm for ferry access and services, Sandhamn for yachting and nightlife, or Möja and Runmarö for nature and serenity. Lidingö is ideal for year-round living.

Sensible budgets:
Property here ranges from moderate to premium. Two-bedroom cottages start around €250,000; sea-view houses or year-round villas from €500,000+.

Getting there:
Most islands are reached via frequent ferries from central Stockholm, 45 minutes from Arlanda Airport. Some outer islands are boat-only or have limited seasonal transport.

Estepona, Costa del Sol, Andalusia

Historically overshadowed by the more famous Marbella conurbation 25 minutes east, today Estepona is seriously on the up and firmly on foreign buyers’ radar. It’s a former fishing village that has evolved into a perfectly rounded resort that oozes Andalusian charm and ticks just about every box.

Recent and ongoing investment there includes the pedestrianisation of the old town and waterfront areas, the expansion of its hospital, new cultural hubs including the Mirador del Carmen art centre and future Starlite music venue, luxury hotels, Michelin-star restaurants and beach clubs. In 2023 it was crowned Europe’s second-best city by the Academy of Urbanism.

Pleasantly lush and often dubbed ‘the Garden of the Costa del Sol’, at its core Estepona offers the go-to package of long sandy beach (around 20 kilometres in total) with palm-fringed promenade, picturesque ‘pueblo’ style old town and marina with fishing port where the daily catch is landed. Add to this growing new residential districts, a lively festival calendar, balmy year-round climate, world-class golf and easy access to some of Spain’s most glamorous spots – what’s not to like?

Estepona, in Andalusia

Buying property in Estepona

The old town and port area (Puerto de Estepona) are the most central and liveliest areas. Other areas still a short walk away include Las Mesas and Seghers and the northern district of Parque Central. Outside of the town, the ‘New Golden Mile’ with its sparkly complexes stretches eastwards, while golf communities, including Valle Romano and Estepona Golf are to the west.

Sensible budgets:
Two-bedroom apartments from €250,000, three-bedroom townhouses from €400,000 or villas from around €500,000.

Getting there:
Malaga’s airport is about 50 mins’ drive or Gibraltar’s is around 45 minutes away. There are also bus services.

Check out property for sale in Estepona.

Orihuela Costa, Southern Costa Blanca, Alicante

A firm favourite with British and northern European homeowners, Orihuela Costa is arguably Spain’s most expat-friendly and best value second home destination. Essentially a collection of small beach resorts and urbanisations, it’s the beating heart of the southern Costa Blanca. Which means you’re rarely more than a short walk from a supermarket and local drinking hole and English is widely spoken. While the choice of properties within walking distance of the beach and a lively promenade, with a full range of bars and restaurants, is huge.

Orihuela Costa is a year-round destination with a good local bus service for moving up and down the 16-kilometre stretch of coastline, including a service to the shopping mall La Zenia Boulevard. For golfers, there are four quality courses all no more than 10-15 minutes apart, namely Las Colinas, Campoamor, Las Ramblas and Villamartin. Seafarers can get their fix too, thanks to marinas at Cabo Roig, Campoamor and Torre de Horadada.

Dehesa de Campoamor, Orihuela Coast

Buying property in Orihuela Costa

Popular beach areas include Punta Prima, Playa Flamenca, La Zenia, Cabo Roig, Dehesa de Campoamor and Mil Palmeras. Off the seafront, La Florida, Villamartín and Los Dolses are favourites.

Sensible budgets:
Two-bedroom apartments from €150,000, three-bedroom townhouses from €225,000 or villas from around €300,000.

Getting there:
Airports at Alicante to the north or Murcia to the south-west are each around 40 to 45 minutes’ drive.

Check out property for sale in Orihuela Costa.

Santa Eulària des Riu, Ibiza, Spain

On the east coast of Ibiza, Santa Eulària des Riu is the island’s sophisticated, family-friendly resort town, known for its palm-lined promenade, upscale marina and art galleries.

Unlike Ibiza’s party-centric west, Santa Eulària offers a gentler, more cultured lifestyle: think boutique shopping, wellness retreats, local markets, and stylish beach restaurants. It’s also home to Ibiza’s only river (the “Riu” in its name), leading to the historic Puig de Missa hilltop church. The town is popular among year-round residents, digital nomads and second-home owners looking for balance between tranquillity and accessibility.

Its clean, swimmable beaches and well-kept infrastructure make it ideal for retirees or families who want the beauty of Ibiza without the chaos. You still have easy access to the island’s famous beaches, clubs and countryside — but can retreat to peace and sea views at the end of the day.

Cala Mastella, Santa Eulària des Riu, Ibiza

Buying property in Santa Eulària des Riu

Focus on properties in Siesta (a peaceful hillside suburb), Jesus (a short drive inland with chic villas), and seafront homes near the Passeig Marítim. Nearby Cala Llonga offers a more resort-style beach community.

Sensible budgets:
This is a premium market. Two-bedroom apartments start from around €400,000; detached houses or villas typically from €850,000+.

Getting there:
Ibiza Airport is 25 minutes by car. Direct flights remain limited to high and shoulder seasons, but there are easy transfers from Palma or Barcelona airports. Ferries link to mainland Spain all year round.

Check out property for sale in Ibiza.

Los Alcazares, Costa Calida, Murcia

This corner of Spain, still heavily agricultural, used to be overlooked in favour of the more developed Costa Blanca, 20 minutes up the road. These days though, house-hunters are discovering how their euros stretch that little bit further if they extend their search into buying property in Murcia and along the Mar Menor. Los Alcazares is the main resort there and while increasingly popular with foreigners, it’s still very local and attracts as many Spaniards. Health tourists, including the then King of Spain, began visiting the town in the early 1900s to bathe in the Spa water at the La Encarnacion Hotel.

Stretched along the shoreline of Europe’s largest saltwater lagoon, the resort’s centrepiece is its 7km string of sandy beaches, connected by a wonderful promenade dotted with bars and chiringuitos. The calm, tidal-free waters are ideal bathing conditions for families but also for all types of water sports. The resort has its own marina too. While the internationally acclaimed La Manga Club Resort is a 20-minute drive away, Los Alcazares has a choice of less exclusive golf courses on its doorstep, including the Mar Menor Resort, Roda Golf Resort and La Serena Golf.

Your quiet, relaxing retirement in Los Alcazares? (David Moreno Hernandez / Shutterstock.com)

Buying property in Los Alcazares

Most of the newer homes are in the northern part, namely the Los Narejos area. Value for money make plot and build villas popular. For a more traditional home and lifestyle, head to the original old town. Serena Golf, at the southern tip of town, has attractive new-build.

Sensible budgets:
Villas from €275,000 (or €325,000 new), townhouses from €175,000, apartments from €125,000.

Getting there:
Murcia Airport is just 30 minutes’ drive, while Alicante is around an hour.

Check out property for sale in Murcia.

Castellón Coast, Costa Azahar, Spain

Spain’s Costa Azahar — the “Orange Blossom Coast” — runs north of Valencia, and its Castellón stretch offers some of the Mediterranean’s best-kept secrets: long, uncrowded sandy beaches, natural parks, and authentic Spanish seaside towns.

Unlike the more touristic Costa Blanca or Costa del Sol, the Castellón coast remains refreshingly low-key and affordable, but is steadily gaining attention thanks to improved transport and luxury developments.

One standout is Porta de Mar, a high-end, sustainable community between Benicàssim and Oropesa, featuring elegant villas and apartments, sea views, green space, and walkable amenities. This region also boasts dramatic inland landscapes, charming old towns, and a lifestyle that’s relaxed yet well-connected. With over 300 days of sunshine, blue flag beaches, and proximity to Valencia, the area is attracting international second-home buyers seeking value and quality of life.

The Costa Azahar

Buying property in Castellón

Explore Benicàssim for its beachside buzz and music festivals, Oropesa del Mar for family resorts, and Alcossebre for peaceful coves. Porta de Mar offers modern, eco-conscious homes in a prime seafront setting.

Sensible budgets:
More affordable than southern coasts. Two-bedroom apartments start from €160,000; modern villas in Porta de Mar from around €770,000.

Getting there:
Castellón Airport is 25 minutes away; Valencia Airport just over an hour. High-speed AVE trains connect nearby towns with Madrid and Barcelona.

Check out property for sale in Costa Azahar.

Kalkan, Antalya province, Turkey

Nicknamed the ‘Saint Tropez of Turkey’, Kalkan is one of Turkey’s most desirable resorts. An old fishing town set deep in an amphitheatre shaped bay under the verdant Taurus Mountains, the views alone are enough to win over house-hunters. Eating out is another treat too. Recent years have seen Kalkan evolve into an internationally acclaimed gastronomic hot spot, one that attracts high profile international visitors. The old town, beautifully preserved thanks to strict planning rules, is a gem. Its narrow cobbled streets are lined with boutiques, cocktail bars and quality dining spots. Today the resort reportedly has more than 100 restaurants catering to all budgets, many with stunning terraces looking out across the bay.

The coastline is another of Kalkan’s ace cards. It has a pebbly local beach beside its busy harbour, a hub for local fishing boats, water taxis and boat trips. A stroll out of town or short bus-ride takes you to beautiful unspoilt spots, many run as beach clubs. Nearby Patara, part of a national park, is often ranked in Europe’s top 10 beaches.

Your home, with a beach at the end of the street, in Kalkan

Buying property in Kalkan

The higher you go up the hillside the better the view, but longer your walk to amenities. Apartments in the old town are close to the action but can be noisy and lack in views. On the eastern side of the bay and still within walking distance to the centre, Komourluk and Kisla are popular areas. Directly above the centre is Ortaalan, a newer district known for its luxury villas. Higher still is Kiziltas, with space for large plots and villas with fantastic views. Or with its own mini bay and beach clubs, try Kalamar Bay on the western edge of town.

Sensible budgets: Two-bed apartments from £225,000, villas/ semi-detached villas from £375,000, large villas from £450,000. Luxury homes upwards of £650,000

Getting there: Dalaman is the nearest airport, with transfers taking around 90 minutes. Or Antalya Airport is around three hours’ drive.

St Julian’s, central east coast, Malta

St Julian’s is a buzzing resort set around a set of bays and home to luxury hotels, modern apartment blocks and some of Malta’s best leisure amenities, night-life and shopping. It’s a lively year-round destination, ideal for couples, resident professionals or families who like being in the centre of the action.

St George’s Bay at the resort’s northern end offers a lovely calm sandy beach and more relaxed holiday feel. The main St Julian’s Bay is more urban with apartment complexes, old townhouses and restaurants lining the waterfront and bathing areas. Notable areas include Paceville, Malta’s late-night party district, the upmarket Portomaso marina development, historic Spinola Bay and the seafront promenade that goes through neighbouring Sliema almost as far as Valletta.

One big draw for buyers are the choice of Special Designated Areas (SDAs) – these are zones where EU and non-EU citizens can buy freely, exempt from foreign ownership rules and permit requirements applicable across the wider island.

Complementing its balmy Med climate and pretty coastline, Malta is a historic gem with three UNESCO World Heritage Sites, including Valetta. A British colony for more than 150 years, means English is a joint official language, shops and cafés have old British names, driving is on the left!

St. Julian’s, Malta

Buying property in St Julian’s

St Julian’s SDAs, where foreigners can own more than one unit and are free to rent out their property, include Pender Gardens, Mercury Suites, Mercury Towers, the eco-friendly ORA Residences and Portomaso. These all offer modern luxury apartments, typically within a complex with on-site facilities such as gym. Older resale properties tend to be away from the waterfront areas.

Sensible budgets: Small apartments from £400,00, large/sea-view apartments from £550,000, penthouses from £850,000 houses/villas from £1million.

Getting there: Malta’s international airport, located in the south, receives year-round flights from the UK. Nowhere is a long transfer – resorts in the north are just 35-40 minutes’ transfer.

Check out property for sale in Malta.

Kinsale, County Cork, Ireland

With roots as a medieval fishing port, today Kinsale is a colourful resort with a reputation as both hip arty and top foodie destination. The eastern gateway to the famous Wild Atlantic Way and often dubbed the Gourmet Capital of Ireland, it is regularly ranked among the country’s most desirable coastal destinations. Private spots on the fringes of the town have attracted

Try not to be enchanted by its pretty waterfront of brightly coloured buildings, including spots for a drink and bite, and marina and ancient harbour, which keeps the town in freshly landed seafood. Behind this are the narrow streets of its old town, home to cosy restaurants (said to total more than 50 now), art galleries, boutiques and food shops.

The town’s picturesque location in a bend of the Bandon estuary, looked over by the two fortifications of Charles Fort and James Fort, lends itself to a second marina on the other side of the river, next to popular Dock Beach. Sailing, fishing and all types of water sports are a way of life in Kinsale, but the surrounding countryside offers all kinds of outdoorsy activities. Tapping into its rich culture and gastronomy, each year the town hosts an array of events, including Kinsale Gourmet Festival, Kinsale Fringe Jazz Festival and even a competition to find the best chowder in all of Ireland. Can you imagine a more enriching place to live in the Emerald Isle?

KInsale (Kirk Fisher / Shutterstock.com)

Buying property in Kinsale

Being within with walking distance of town or one of the waterfront coves around the estuary, such as Summer Cove. Scilly on the edge of town has attracted has attracted some high ticket sales recently, as has Sandycove and Oysterhaven.

Sensible budgets: From €300,000 for a small cottage/terrace, from €500,000 for a detached house or bungalow or €1million for country house with sea views.

Getting there: Cork Airport is just 25 minutes by car, the next closest being Kerry Airport (2 hours), or Dublin Airport is three hours. Rosslare Harbour, with ferries to the UK, is also three hours.

The post 20 best seaside resorts to buy a property in Europe in 2025 appeared first on Your Overseas Home.

Located on Spain’s northeastern coast, the Costa Brava is known for its wild natural beauty and refined Catalonian culture. It’s easily reached from the UK and across Europe, yet feels a world away, with its mix of lively fishing ports, peaceful hilltop villages and golden beaches backed by pine-covered cliffs. From stylish marina apartments to centuries-old villas, the property options here are as varied as the landscape. And with the right guidance, buying on the Costa Brava can be more than just a dream – it can be your doorway to a better life abroad.

Download the Spain Buying Guide

Contents

• Why buy in the Costa Brava?
• Is Costa Brava property a good investment?
• What does the property market look like?
• What’s the climate like?
• How to get there
• Where to buy: 6 popular towns
• Steps to buying property in the Costa Brava
• Living in the Costa Brava

Why buy in the Costa Brava?

You’ll find the Costa Brava stretching from Blanes to the French border – a 120-kilometre sweep of rugged coastline with sandy coves, pine-cloaked hills and clear waters. Unlike southern hotspots, this corner of Catalonia has four distinct seasons and an upmarket feel that attracts discerning buyers.

There’s a blend of beach life and mountain air, Michelin-starred dining and rural calm. It’s not unusual to spend a morning skiing in the Pyrenees and the afternoon swimming in the Med. Outdoor lovers have hiking trails, golf courses, and water sports galore, while those after culture can explore Roman ruins and charming old towns. And if you ever need a big city fix, Barcelona is just down the road.

Is Costa Brava property a good investment?

Yes – with a few caveats. The Costa Brava’s year-round accessibility by air, road and rail, combined with its appeal to both local and international buyers, means demand stays strong. Holiday lets are popular, especially among Barcelona-based families seeking summer escapes.

However, this popularity pushes prices up. In coastal areas, expect to pay over €4,000 per square metre, making it one of Spain’s most expensive regions. Resale homes under €1m attract a 10% purchase tax, rising to 11% above that – among the highest in Spain.

That said, if you’re renting the property out in summer and using it yourself in cooler months, the balance can work well. Just remember that outside of June to August, bookings will drop – temperatures are milder than in southern Spain.

Many buyers choose the Costa Brava for lifestyle first, investment second – particularly retirees, remote workers and those seeking a base for extended family holidays. But it’s possible to achieve both: steady appreciation, plus personal enjoyment.

What does the property market look like?

The Costa Brava leans towards resales and renovation properties, thanks to careful planning controls. That said, new builds – including high-spec villas – are available, particularly for buyers with €1m+ budgets. Inland, renovation projects or land can start under €100,000.

Here’s a snapshot of typical prices:

You’ll find fewer developments and more one-off homes than in southern Spain. Many have retained their local character, with Catalan roof tiles, shady terraces and mountain views. That scarcity is part of their appeal – and their resilience in the property market.

Search Costa Brava properties

What’s the climate like?

This is still the Mediterranean – just a touch milder than the south. Summers (June-August) are hot but not oppressive, with highs of around 30°C in July. Winters are cooler, averaging 9°C in January, and you might even see frost inland.

Sea temperatures hover around 23°C from June to October – perfect for swimming. Rain is minimal: The region sees just 4mm in January compared to London’s 52mm.

You can still enjoy long lunches outdoors in spring and autumn. Unlike the sweltering south, the Costa Brava keeps its crispness. And that means properties here work for year-round living – not just high season.

How to get there

You’ve got two good airport options: Girona (smaller and closer to the north) and Barcelona El Prat (Spain’s second largest). Both have frequent flights from the UK and elsewhere in Europe, with Barcelona also receiving long-haul flights.

You can reach the Costa Brava from Paris or Switzerland in less than 10 hours. The region is well-connected by road, as well as high-speed trains into Girona and Barcelona.

Where to buy: 6 popular towns

Tossa de Mar: a picture-perfect coastal town

1. Roses: combines beach life with great restaurants (including Michelin stars), water sports and natural beauty. The Bay of Roses is especially scenic, with calm waters and quiet coves.
2. Empuriabrava: known as “Little Venice”, this marina town has a vast canal network and a strong expat community. It’s great for boating, golf and leisurely living.
3. L’Escala: a working fishing town that swells in summer. Riells beach is perfect for families, and the anchovies here are world-famous.
4. L’Estartit: popular with overseas buyers, it has a long beach, a buzzing marina and hosts an annual jazz festival.
5. Begur: a medieval hilltop town with panoramic views and a short drive to some of the region’s best coves, including Sa Riera.
6. Tossa de Mar: With a castle rising above the beach, pine forests and 14km of coastline, it’s postcard-perfect and has a strong year-round community.

Beyond the hotspots, there are dozens of quieter villages tucked into the hills or overlooking small coves. In winter, some feel near-deserted – romantic to some, too quiet for others. If you want year-round life, choose somewhere within easy reach of a larger town.

Steps to buying property in the Costa Brava

1. Search online: shortlist areas and properties that match your lifestyle and budget goals. Prioritise features like walkability, rental potential, or views.
2. Build your team: choose a local estate agent, an English-speaking lawyer, and a currency expert such as Smart Currency Exchange to help transfer your funds securely. You might also want a financial advisor or mortgage broker.
3. Book a viewing trip: visit properties in person, ideally across different towns. Travel times can vary, so plan your itinerary carefully. Virtual tours can also help you shortlist.
4. Make an offer: if the seller accepts, you’ll sign a reservation contract and pay a fee to take the property off the market. Then you’ll pay the deposit (typically 10%).
5. Finalise the purchase: your lawyer will arrange the notary appointment, and you’ll sign the escritura pública (final contract) and pay the balance, including purchase tax, notary, legal and registration fees.

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Living in the Costa Brava

What’s life like once the sale is complete? Expect a blend of beach days, local festivals and long lazy lunches. Catalonia has a proud identity, so you’ll hear both Spanish and Catalan spoken. The food scene is a highlight – from rustic seafood to avant-garde cuisine.

Shops and restaurants generally stay open year-round in larger towns. Healthcare is excellent and fibre internet is available in most places – ideal for remote working. If you’re bringing pets or kids, you’ll find plenty of green space, and international schools near Girona and Barcelona.

Many buyers split their time here – summers on the coast, winters back in the UK or inland. But increasing numbers are making the Costa Brava their year-round base, drawn by its slower pace and sense of place.

You might also like:

• Where to buy in Spain: best regions for overseas buyers
• Buying property in Murcia – your complete guide
• How to find the Spanish home that suits you

The post Buying a home on the Costa Brava – the smart buyer’s guide to Spain’s wild coast appeared first on Your Overseas Home.

Whether you’re itching to start your new life on warmer shores or you’re looking to invest now and move later, golden visas offer a unique route to living – or just having a base – in some of Europe’s most desirable destinations.

As well as gaining residency in the country you buy in, many schemes offer visa-free travel across the entire Schengen Area, which includes 29 countries across Europe. Let’s explore how it all works and which country is the best fit for you…

Download your free Golden Visa Guide

Contents

• What is a golden visa?
• How does it work?
• Typical investments
• How to apply
• Top golden visa destinations
• Tax benefits
• Next steps

What is a golden visa?

A golden visa is a residency-by-investment scheme. In short, if you invest a certain amount into a country’s economy – often through property, a business or a government fund – you can gain the legal right to live there. Some schemes also provide a path to citizenship over time.

The idea took off across Europe following the 2008 financial crisis, as countries sought foreign investment to revive their economies. Today, golden visas appeal to everyone from early retirees and remote workers to high-net-worth individuals securing a European base for their families.

How does it work?

Each country has different rules, but most allow you to include your spouse and dependants, keep your existing citizenship and spend minimal time in-country to maintain your visa. While most programmes offer temporary residency initially, some (like Cyprus and Malta) grant permanent status right away.

You’ll typically need to prove your funds are legally obtained, pass a criminal background check and choose from a list of approved investment options. In return, you may gain access to healthcare, tax advantages and travel freedom across much of Europe.

Many golden visas allow you to include your family members

Typical investments

Investment routes vary but here are the most common:

• Property: residential options are now limited to countries like Greece and Cyprus. Portugal and others have shifted to commercial only.
• Capital: invest in venture capital funds, company shares or government bonds.
• Donations: Malta and Hungary include options to make a charitable donation to gain residency.
• Job creation: countries like Portugal and Turkey offer residency for starting a business that hires local people.

How to apply

1. Choose your country and investment: consider lifestyle, climate, investment budget and how soon you want residency.
2. Get expert help: a visa lawyer or advisor will help you navigate the paperwork and meet legal requirements.
3. Prepare your documents: these often include proof of funds, a clean criminal record and sometimes biometric data.
4. Make your investment: you must complete the investment before submitting your visa application.
5. Submit the application: most countries issue a decision within 2-12 months*.

*Note that processing times can vary greatly. For example, in Turkey it typically takes three to six months, while in Portugal it can take up to two years.

Top golden visa destinations

Douro Valley, Portugal

From the whitewashed villages of Greece to Portugal’s vineyard-covered hills, golden visa destinations span some of Europe’s most attractive – and lifestyle-rich – locations. Each country offers its own blend of benefits: some with sunshine year-round, others with fast-track residency or attractive tax perks. But which is right for you?

To help you compare, we’ve put together this easy-to-read table summarising the key details of each golden visa programme – including investment amounts, eligible routes, family inclusion and residency requirements.

Tax benefits

It’s not just about sunshine and travel – many countries offer tax advantages that can make a real difference in retirement or while running a business abroad. Cyprus, for example, has no tax on foreign income or inheritance and low income tax overall. Malta also offers generous tax incentives, particularly for retirees with foreign pensions.

Portugal’s non-habitual resident regime (NHR) was another strong draw for years, though it is being phased out and replaced with new options for professionals and investors. Italy offers a flat-tax regime for foreign residents with wealth overseas, and Hungary’s low cost of living means your money simply stretches further.

Next steps

There’s no one-size-fits-all answer when it comes to golden visas. It depends on what stage of life you’re in – and what you’re aiming for. Retirees may be drawn to Greece or Cyprus for the sunshine and property options. Investors might prefer the flexibility of Portugal or Hungary. And if permanent residency is your goal from day one, Malta is a standout choice.

Wherever you’re heading, the most important thing is getting trusted advice from people who understand both the legal process and your lifestyle goals.

Speak to a property consultant

Summary

A golden visa can offer more than just residency – it can open the door to a lifestyle, a legacy or a long-term investment. Whether you’re ready to relocate or just want to keep your European options open, this route is worth exploring – and we’re here to help guide you through every step.

You might also like:

• EU golden visas: your fund investment options
• Cyprus or Greece: which country offers the best golden visa?
• The US gold card: a new golden visa for the wealthy

The post Your golden gateway to Europe: how to get residency through investment appeared first on Your Overseas Home.

It’s only 10am, but already the morning air shimmers with heat and your terrace tiles are hot beneath your feet. The sun is intense enough to drive you indoors or force you to retreat beneath the shade of a parasol. Yet, this warm Mediterranean climate is precisely what draws you here, and with the right planning, even the hottest days can become moments of pleasure and relaxation.

When surveyed, two-thirds of Your Overseas Home readers cited better weather as a key reason for purchasing a second home abroad. But in a world where summers grow hotter each year, your dream escape needs more than beautiful views – it needs practical features to keep the heat at bay. Here’s how to ensure your property stays a cool haven, even as temperatures soar.

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Contents

1. Covered roof terrace
2. Shaded walls
3. Door and window shutters
4. Through breeze
5. Secure windows
6. Air conditioning
7. Cellar or basement
8. Swimming pool
9. Reliable water supply
10. Outdoor cooling devices

1. Covered roof terrace

A roof terrace is ideal for scenic evening meals or sunset drinks, but without adequate shading, daytime use becomes impossible. Look for sturdy roof coverings, preferably built from reflective materials like white-painted wood or tiles. Avoid temporary gazebos that deteriorate quickly under intense sun and wind.

A robustly covered terrace not only provides a comfortable daytime retreat but also reduces the heat transmitted into rooms directly below, improving overall indoor comfort.

2. Shaded walls

Direct sunlight on your home’s exterior walls creates uncomfortable indoor heat. Houses with thick stone walls or cavity insulation are a good start, but external shading significantly improves indoor temperatures. Mature trees, strategically placed gazebos or covered verandas not only enhance your property’s aesthetic appeal but provide practical cooling benefits.

A shaded veranda doubles as a comfortable outdoor living area – perfect for entertaining or relaxing during the hottest parts of the day. Additionally, it protects your interior from direct sun exposure, preventing overheating and damage to furniture and flooring.

3. Door and window shutters

Many Mediterranean homes feature shutters on the windows to keep the heat out

In Mediterranean regions, shutters are an indispensable feature. They protect windows and doors from the sun’s damaging UV rays, extending their lifespan significantly. Shutters also block heat from entering your rooms, maintaining a cooler indoor environment.

Opt for shutters with adjustable vents, allowing you to manage airflow while keeping interiors shaded. Metal shutters add an extra layer of security – especially beneficial for holiday homes left unattended for extended periods.

4. Secure windows

Window bars might not initially seem appealing, but they can be a wise and practical addition. When paired with insect screens, bars allow you to keep windows open at night, inviting cooler breezes into your home without compromising security.

Modern, decorative bars add character to your property, and flower-filled window boxes soften their appearance beautifully.

5. Air conditioning

Though air conditioning systems historically came with high running costs, modern units are incredibly energy efficient. When paired with photovoltaic solar panels, running costs are drastically reduced, making air conditioning a viable, affordable solution even during prolonged heatwaves.

Use your air conditioning strategically, cooling your bedroom briefly before bedtime. This targeted approach keeps your electricity usage manageable, ensuring comfort without significant expense.

6. Through breeze

Large windows might seem like an attractive feature, but in hot climates, smaller windows are more practical, as they help minimise sun exposure. Positioning windows on opposite walls, particularly one facing north, maximises airflow when opened simultaneously, creating a pleasant through breeze.

Enhance this natural ventilation by strategically placing fans near open windows to circulate air efficiently throughout your home.

7. Cellar or basement

A cellar or basement is typically the coolest part of any home during sweltering summers.

While its primary use may be to store wine and other items, consider arranging comfortable seating or a small table amidst your bottles and boxes, to create a refreshing retreat away from the heat above.

8. Swimming pool

Swimming pools provide instant relief from scorching temperatures

Nothing beats taking a dip in a pool on a hot day. If your property doesn’t have space for a large swimming pool or you’re mindful of budget and maintenance, a plunge pool or above-ground option offers the perfect solution. These smaller pools provide affordable relief, are easier to maintain and often require less water.

Alternatively, finding a property that already has a well-maintained pool – large or small – can be a practical choice, saving you both upfront investment and ongoing costs.

9. Reliable water supply

Heatwaves often cause drought conditions, impacting water availability. When viewing properties, always verify the reliability of the water source – be it mains water, wells or delivered storage tanks. Rainwater harvesting systems can be particularly beneficial, offering sustainable water supplies for gardens and outdoor needs.

Additionally, having a sizeable underground or shaded backup tank ensures uninterrupted water availability, giving peace of mind during dry spells.

10. Outdoor cooling devices

If you’ve found your dream property and it has no obvious cooling features, don’t despair! There are products you can buy to transform your outdoor areas into comfortable retreats even in peak summer heat. Practical outdoor cooling devices like patio misting systems can reduce temperatures by up to 10°C, outdoor ceiling fans are specially designed for open-air use and stylish shade sails offer protection from direct sunlight over large outdoor spaces.

Conclusion

Choosing a holiday home equipped with cooling features ensures you enjoy your property fully, no matter how hot the summer gets. Each addition not only enhances your comfort but also adds substantial value to your property. Keep these tips in mind to confidently select a home that remains enjoyable and practical in even the most intense heatwaves.

You might also like:

• Europe’s best seasides to enjoy ALL year 
• Why owning a holiday home in Europe is still a good idea
• Why and how to buy overseas with family or friends 

The post 10 property features to keep your holiday home cool in a heatwave appeared first on Your Overseas Home.

Falling victim to a property scam is devastating – and it can happen to anyone. Fraudsters are highly skilled at making their schemes look convincing, especially when you’re caught up in the excitement of buying your dream home abroad. But most scams are much easier to avoid when you know what to look for. With a few key checks and the right guidance, you can protect your money and your plans.

8 overseas property scams you need to know about:

1. Fake agents and intermediaries

Some scammers pose as agents or lawyers, using cloned emails, official-looking websites or even spoofed phone numbers. They request deposits or fees for legal checks that never happen.

How to stay safe: Don’t rely on introductions made through social media, forums or marketplaces. Work only with vetted, recommended agents from trusted sources. Your Overseas Home only works with verified local partners.

Find trusted experts on Your Overseas Home

2. Hidden debts or charges

A property might look like a bargain – until you inherit local taxes, community fees or unpaid mortgages that weren’t disclosed up front. Some buyers have lost homes after discovering post-sale that the property had significant debts attached.

How to stay safe: Hire a lawyer who will carry out due diligence, including a full charges search. Avoid using the seller’s suggested legal representative.

3. Time-limited “tax or registration” scams

Buyers are sometimes told that they need to pay an urgent tax, notary or registration fee to secure their property or avoid losing it. These fees may seem plausible and are often accompanied by official-looking documents.

How to stay safe: Any legitimate tax or fee should be processed through your lawyer or the notary handling your purchase. Avoid sending payments outside of this chain.

4. Switch and trap fraud

This scam involves last-minute changes to payment details. You receive an email from your lawyer or agent with a new bank account number for the deposit. You send the funds, only to discover later that the email was a fake.

How to stay safe: Always verify new payment instructions by phone using a number you trust. Never click payment links in unsolicited emails.

Without the right guidance, anyone can fall victim to overseas property fraud

5. Too-good-to-be-true listings

You spot a property with an incredible view, at an unbelievable price. It’s on a reputable-looking website, and the listing says it’s urgent. But there’s a catch – the home doesn’t exist, or the seller has no right to sell it.

How to stay safe: Never send a deposit or agree to a viewing without verifying ownership through a local legal expert. Use a reputable website like Your Overseas Home to search for properties and connect with verified legal partners who will check land registry records for you.

6. Unregulated investment schemes

Holiday lets, off-plan resorts or retirement developments offering “guaranteed returns” might seem like smart investments. But some are fronts for Ponzi schemes or involve selling units that aren’t legally viable.

How to stay safe: Be sceptical of guaranteed rental yields. Ask for full planning permission and building licences and confirm that the developer holds clear title. Your Overseas Home can connect you with an independent legal expert who will investigate on your behalf.

7. Currency exchange cons

Some buyers fall prey to individuals posing as FX brokers who offer unbeatable rates. You transfer large sums, and the money disappears.

How to stay safe: Only use FCA-authorised currency providers with a strong track record. Smart Currency Exchange, the trusted partner of Your Overseas Home, offers secure, regulated transfers with dedicated support.

8. Rental deposit and sublet scams

Fraudsters sometimes advertise properties for short-term rent (especially in popular tourist areas) and request a deposit upfront. In reality, they have no right to rent the property – or it doesn’t exist at all.

How to stay safe: Never transfer a deposit without seeing the property in person or via a verified agent. Ask Your Overseas Home for recommended viewing trips and virtual tours from known agents.

Email Your Overseas Home for expert help

Mortgage mis-selling in Spain (2000–2016)

Between 2000 and 2016, thousands of mortgages issued in Spain included unfair terms that caused buyers to overpay. The European Court of Justice has ruled in favour of consumers, and Spanish courts are upholding these claims.

You may be able to reclaim those funds, even if your mortgage is fully paid or the property has been sold. Our trusted partners JLCA & AS can help, offering a no-win, no-fee service.

Check if you’re eligible

Summary

Overseas property scams are evolving, but that doesn’t mean you have to face the risk. With the right legal checks, trusted experts and practical support, your dream home abroad can become a safe, stress-free reality. Your Overseas Home is here to guide you every step of the way.

You might also like:

• 3 important contacts when buying property overseas 
• How to minimise currency risk for your overseas property purchase
• Virtual property viewings 

The post Property scams abroad: how to spot them and stay safe appeared first on Your Overseas Home.

So, is having a residence abroad still worthwhile? To help you see that, done properly, it really is, we address some common concerns and misconceptions…

It’s getting harder to own a holiday home abroad, right?

Owning a home in Europe remains as accessible as it has ever been – your legal right to buy is well and truly secure. In a few smaller states, including Malta and Switzerland, second home ownership is allowed by non-EU citizens but only in certain areas and is carefully controlled. Elsewhere, some non-EU destinations have temporary measures in place. These include Canada, Australia and New Zealand, where non-resident real estate purchasers are limited or prohibited.

In recent months you’ll have seen headlines coming from Spain and some other EU countries about proposals to ban non-EU buyers of holiday homes or levy high taxes on them. Generally, such drastic threats are politically-driven rhetoric with no real legal traction, not to mention in breach of EU convention. If they do come into force, they tend to be toned down, take a good year or two to be passed and those affected have plenty of lead in time to prepare.

Don’t equate property ownership with residency. Simply buying in a country does not automatically entitle you to getting a visa or becoming legally resident there. If you plan to make your property your primary residence and live in it, you still need to apply for residency. Some visa applications, typically investment ones, incorporate a property purchase option.

On the flip side, becoming a resident in an EU country has changed for UK citizens and has arguably got more complicated. Since 1 January 2021 when Brexit kicked in, Britons have needed visas to reside in Europe, just like their US counterparts and other third-country nationals. It doesn’t help that governments tend to tweak the rules for their different visa options. For example, golden visas (a type of investment visa) are becoming less accessible and more expensive generally. Meanwhile, digital nomad visas are increasingly popular with working people wishing to live abroad while continuing to work remotely. Most EU countries have a form of non-lucrative visa. Aimed at retirees and/or people with regular foreign income, these tend to be most popular.

I’ll get bored holidaying in the same place and won’t use it enough…

Whether this is a valid push-back to buying abroad comes wholly down to your individual approach and expectations. Different people have different objectives and different patterns of use for their second home – and many are perfectly happy visiting once a year or less.

Typically, non-resident foreign owners fit into two camps, or somewhere in-between. There are those whose property is much more than simply holiday accommodation, rather it is a true second home. So somewhere they visit at every opportunity at any time of the year, perhaps spending months at a time, where they slip seamlessly into their ideal way of life. They make the place their own, would never rent to holidaymakers (maybe let family stay) and may well retire there.

Then there are those who think of their property as a lifestyle investment and have a more functional approach. Their property is geared up purely for vacations. When they’re not using it themselves, they will make it available for holiday lets. For many of these people, maximising rental income is a priority so they keep their own visits in high season to a minimum. Some prefer to visit only in low season or some years, not at all.

Either way, they enjoy the freedom of being able to choose where they holiday each year – whether or not they use their holiday home, they know it’s earning them income. Researching the local holiday let market and any regulation governing rentals, including licencing and community rules, before committing to a purchase is critical for these owners.

Consider holiday lets and earn some extra income

Get savvy with seasonal use!

Remember, low season is an ideal time to crack on with those odd jobs that accumulate over time. You should have plenty of time to get everything tickety-boo in time for the following holiday season. This is especially important when renting out your property and want to max out bookings in the most lucrative months of high season. Even if it’s not you doing the work, the quieter months are ideal for heading out to your property for a mini-break and organising someone else to do it!

Out of season trips provide the perfect opportunity to explore new places and do fun activities outside of your resort. These are things you wouldn’t dream of doing in the summer when it’s too hot to go traipsing around and your priority is to be horizontal on the beach or terrace. Research the local area and find a festival or event somewhere, or head into a historic town that’s always intrigued you. Foodies should never get bored, picking new restaurants to try.

Not keen on renting to holidaymakers but also want to vacation in other places without feeling guilty about leaving your holiday home empty? Then consider using a home exchange platform, which enable property-owners to swap time at each other’s homes. The exchanges needn’t be done concurrently. Typically, to use these platforms the only cost is a subscription fee, usually paid annually. Examples include the Guardian’s Home Exchange scheme and websites like HomeExchange.com, InterVac-HomeExchange.com and HomeLink.org.

Aren’t there better ways to invest?

Buying overseas tends to be a lifestyle decision as much as a financial one. Most owners don’t expect their second home to outperform every other type of more traditional financial investments; they just need it to be a sensible one. Think like that and you can never lose. In fact, purchase wisely with a long-term view and using the right experts (experienced estate agent, independent lawyer and currency specialist), chances are you’ll realise capital gain.

Just look at the figures. Between 2015 and 2023, house prices across the EU rose on average 48%, according to European Commission data. Focus on areas popular with international homeowners and property values tend to increase more. For instance, homeowners in Spain’s Malaga province, home to the Costa del Sol, saw average prices increase 74% between 2015 and 2025 (National Statistics Institute), equal to an annual average of 7.4% a year. Compare this to UK gilts, a typical fixed income investment, which are currently yielding around 4.5% a year. Meanwhile, investors in UK stocks via a typical FTSE All-Share or FTSE 100 tracker could expect total returns of around 65%-70% (including reinvested dividends) over the last 10-year period depending on the provider.

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• What taxes do US citizens pay on overseas property? 

The post Why owning a holiday home in Europe is still a good idea appeared first on Your Overseas Home.

There’s no question about it: buying a property overseas is an exciting venture. But for US taxpayers, it comes with more than just daydreams of lazy beach days and lucrative rental returns. The IRS keeps a close eye on your overseas finances – and owning foreign property comes with certain tax liabilities. So, to avoid unexpected costs and penalties, here’s what you need to consider:

1. Rental income is taxable – even overseas

Let’s say you buy a seaside apartment in Portugal or a ski chalet in France and rent it out while you’re not using it. Any rental income you earn is taxable in the US and must be reported to the IRS – even if you’re paying tax on it locally too.

The Foreign Earned Income Exclusion (FEIE), which can help US taxpayers reduce their tax bill, doesn’t apply to passive income like rent.

You’ll need to report your gross rental income and associated expenses on Schedule E (Form 1040).

2. Know your reporting obligations: FBAR and FATCA

Even if your property itself doesn’t need to be reported on either the FBAR or FATCA Form 8938, the accounts connected to it might.

If your foreign financial accounts collectively exceed $10,000 at any point during the year, you’ll need to file a Foreign Bank Account Report (FBAR).

You may also have to file FATCA Form 8938, which applies if your total foreign financial assets exceed certain thresholds (starting at $50,000 for single filers). The rules differ slightly depending on whether you’re living in the US or overseas.

3. Depreciation rules differ for overseas property

In the US, residential rental property is depreciated over 27.5 years. For foreign property, it’s 30 years.

That difference might sound minor, but it affects how much of your property’s cost you can deduct each year – and it could influence your capital gains bill later when you sell.

4. You may be eligible for foreign tax credits

If you pay tax on rental income in the country where your property is located, you might be able to offset it by claiming a foreign tax credit on your US return (Form 1116).

This can help prevent double taxation – but only if you have accurate records and understand how each country’s rules apply.

Different countries vary widely in how they treat deductions and expenses, so always check with a cross-border tax advisor.

Tax planning is key to keeping your overseas dream on track

5. Capital gains tax still applies – even overseas

If you sell your overseas home, you’ll owe US capital gains tax on any profit, regardless of where the property is located.

The exchange rate can make a big difference. Gains are calculated in US dollars, so if the local currency strengthens against the dollar, your taxable gain might be larger than expected.

6. Buying through a foreign company or trust

Some buyers set up a foreign company or trust to purchase property, often for inheritance or tax planning reasons.

But this can trigger complex US tax rules around Controlled Foreign Corporations (CFCs) or Passive Foreign Investment Companies (PFICs), which involve extra reporting, higher tax rates and potential loss of capital gains treatment.

Forms such as 5471, 8621 or additional FATCA disclosures may be required. Missing these can lead to hefty penalties.

7. Your estate and gift tax obligations include overseas homes

As a US taxpayer, your estate includes worldwide assets, including any property you own overseas.

If you gift the property, or pass it on as part of your estate, it may be subject to US estate or gift tax.

You may also face inheritance or estate taxes in the country where the property is located, so it’s vital to plan ahead.

8. Giving up your green card or US citizenship

If you become a “covered expatriate” under US tax law, any appreciated overseas property may count toward your exit tax.

This is a one-time capital gains tax on your total assets, calculated as if you sold everything the day before you renounced.

9. Foreign mortgage interest may be deductible

You can deduct mortgage interest on a foreign property, but only if it qualifies as a primary or secondary residence and meets certain IRS requirements.

The loan must be secured by the property itself, and the total mortgage amount is subject to limits (currently $750,000 for new loans).

Since foreign banks don’t issue the same tax documents as US lenders, you’ll need to keep thorough records of all payments and agreements to claim this deduction.

Summary

Buying a home overseas is a great lifestyle or investment choice, but if you live in the US, taxes don’t stop at the border. With strict IRS rules and reporting requirements, tax planning is key to avoiding unexpected costs and penalties and keeping your overseas dream on track.

Email us at info@youroverseashome.com or give us a call on 0808 252 7870 and one of our friendly advisers will connect you with a reputable tax specialist in the area you’re buying.

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• Should you buy in a resort or local community?
• An Irish passport could be the key to that dream home in Europe!

The post What taxes do US citizens pay on overseas property? appeared first on Your Overseas Home.