Real estate is the most familiar investment route for foreign nationals considering overseas residency programs. Yet this sector also carries numerous legal restrictions that sales materials rarely disclose.
Four Common Categories of Restrictions
Restrictions by asset type. Many countries allow foreigners to purchase apartments but restrict purchases of land, houses with land attached, or agricultural land.
Restrictions by geographic region. Some countries prohibit or restrict foreign ownership in border areas, zones with strategic importance, or certain islands.
Restrictions by project ownership percentage. Some countries limit foreign ownership to a maximum percentage of units within a single building. Once that cap is reached, additional purchases are not possible, regardless of available inventory.
Prior approval requirements. In some jurisdictions, transactions require government agency approval before completion, a process that takes time and may be denied.
These four categories vary completely between countries and may change over time. This is an area where you must consult a local lawyer, not the property developer.
Real Estate for Residency Applications: An Additional Layer of Conditions
If your purpose in buying property is to meet the requirements of a residency program, additional program-specific restrictions apply:
Minimum price thresholds, which may vary by region. Greece illustrates this clearly: prices vary by zone, ranging from approximately €250,000 in certain heritage areas to €800,000 in high-demand zones.
Required holding periods. Programs typically require you to hold the asset for several years. Selling early may result in loss of residency status.
Eligible asset types. Not all real estate qualifies. Some programs count only residential property, excluding vacant land or commercial assets.
Rental restrictions. This is a newer constraint that many are unaware of: Greece has banned short-term rentals (Airbnb-style) for properties purchased under its golden visa program, with violations resulting in a €50,000 fine and revocation of residency status.
If your plan is to purchase a property and rent it short-term to offset costs, this restriction fundamentally changes the financial equation.
Three Cost Categories Beyond Purchase Price
Taxes and transaction fees. Transfer tax, notary fees, registration fees, and legal fees. The total can represent a significant percentage of the purchase price, and in some countries foreigners pay higher rates than local residents.
Property maintenance costs. Annual property tax, building management fees, insurance, and maintenance. For properties you must hold for several years, these recurring costs must be factored into the total program cost.
Costs when selling. Capital gains tax, and in some countries foreigners are taxed at different rates. You should know this before purchasing, not when you decide to sell.
Disadvantages Worth Considering
Lack of liquidity during the holding period. Your capital is tied up in an asset you cannot sell for several years. If you need funds urgently during this period, this becomes a real problem.
Price volatility. Real estate markets in golden visa destinations have experienced sharp appreciation due to capital flows from these programs. When programs close or tighten, these capital flows stop. Spain closed its golden visa program in April 2025, citing foreign investment driving up housing prices — which itself suggests something about the source of current price levels.
Program conditions may change mid-course. Portugal eliminated its real estate route in 2023. Those who already purchased property under the old route retain their status, but prospective buyers lost that option.
Remote management. Owning property in a country where you don't reside means depending on a property management company. Costs and service quality vary considerably.
Four Questions to Ask Before Putting Down a Deposit
Can foreigners purchase this asset type in this region, and what approvals are required?
Does this property meet the requirements of the residency program I'm targeting, and who will confirm this?
How long must I hold it, and am I permitted to rent it out, and in what form?
What are the total transaction costs and annual holding costs?
The first two questions should be directed to an independent local lawyer, not the property developer. The cost of legal consultation is minimal relative to the transaction value, and this is where you least want to cut corners.
We do not sell real estate and receive no commissions from developers. This does not make us more correct, but it explains why this article lists limitations rather than project listings.