Buying Property Abroad: A Due Diligence Checklist

HOA contributions. For apartments: request the management meeting minutes for the last three years. A backlog from the selling owner can indicate financial pressure on the building, or that major maintenance is imminent.

Renovation obligations. Some cities, including Lisbon, Athens and Barcelona, have announced mandatory energy or seismic renovations for specific construction years. Remaining obligations rest with the owner.

3. Tax due diligence

Tax treaty between the Netherlands and the destination country. Bilateral tax treaties determine which country may tax rental income and assets. The Netherlands typically grants relief through the proportional exemption method in box 3.

Local levies. Transfer tax (5–10% in many EU countries), stamp duties and notary fees together often amount to 8–15 percent of the transaction price. Never count these as incidental; they are structurally part of the investment basis.

Rental regime. In countries with a growing tourist rental sector, additional local registrations are required. Lisbon, Athens and parts of Spain operate vacation-rental registration systems whose rules change yearly.

4. Technical due diligence

Building inspection. Engage a local, independent surveyor (comparable to a NEN 2767 condition survey). This is not legally required in many countries but is market standard for professional buyers.

Energy performance. A valid energy label is required in all EU countries on sale. The European EPBD directive has set minimum standards for rental property since 2024.

Changing climate risks. For coastal property, sea-level risk becomes relevant. Southern European areas are mapped by the European Environment Agency (EEA) on climate maps; check whether the property lies in a sensitive zone.

5. Compliance and source of funds

AML / Wwft. Notaries, lawyers and banks in EU member states have been required since the tightened AML directives (AMLD6, implemented 2024–2025) to establish the source of funds. Have documentation ready: bank statements, sale agreements of previous homes, share or inheritance documents.

Sanctions lists. EU banks check against EU sanctions lists on international transactions. Irrelevant for ordinary buyers, but a point of attention for corporate structures with foreign shareholders.

Checklist summary

This checklist is informational and not exhaustive. Every transaction has its own points of attention. Always engage a local lawyer or notary experienced in the jurisdiction.

Sources: RICS · KNB Notariaat · Belastingdienst, treaties · EU EPBD directive · European Environment Agency