How to invest in European property from India: the step-by-step

Europe has never felt closer. Direct flights, remote work and a weaker rupee have put an apartment in Lisbon or Athens on the wish list of many Indian families. The good news: it is entirely legal for a resident Indian to buy property abroad. The catch: there's a specific route, and stepping off it is expensive.

First, the rule that governs everything: LRS

As a resident Indian, you can send money abroad under the Reserve Bank of India's Liberalised Remittance Scheme (LRS). The limit is US$250,000 per person per financial year, and buying immovable property overseas is a permitted purpose. A family of four adults can therefore move up to US$1 million a year between them, if each has their own funds.

Two practical points follow. First, plan your purchase across financial years if the property costs more than your family's combined limit; many buyers pay a deposit in March and the balance in April. Second, you generally cannot take a home loan from an Indian bank to buy property abroad, and borrowing overseas as a resident Indian is tightly restricted. For most buyers, European property is a cash purchase.

Then the tax you pay before you buy: TCS

When you remit money for investment, the bank collects tax at source (TCS). From 1 April 2026, remittances above ₹10 lakh in a financial year for purposes like investment attract 20% TCS on the amount above the threshold. This isn't an extra tax: you can adjust it against your income tax or claim it back as a refund when you file. But on a €300,000 purchase, it can lock up roughly ₹60 lakh for months. Plan for that cash flow.

The route, in six moves

1. 1
   Decide the goal

   Lifestyle home, rental income, residency, or a currency hedge. The goal picks the country.

2. 2
   Check the money route

   Resident Indians remit under RBI's Liberalised Remittance Scheme: up to US$250,000 per person per financial year.

3. 3
   Plan for TCS

   Above ₹10 lakh a year, 20% tax is collected at source on investment remittances. You get it back as a credit.

4. 4
   Get local numbers

   A tax ID (NIF in Portugal and Spain, AFM in Greece) and usually a local bank account.

5. 5
   Buy with a lawyer

   Independent local lawyer for title and debt checks; notary signs the deed.

6. 6
   Report it at home

   Declare the asset in Schedule FA of your Indian return every year.

Figure 1. Source: RBI LRS rules; Finance Act 2026 TCS rates; general EU purchase process

Choosing your country

Europe is not one market. Here is how the most popular destinations for Indian buyers compare today.

Five European markets, at a glance

Country	Latest price trend	Residency through property?	Watch out for
Portugal	Prices +13% to +19% a year (Q1–Q2 2026)	No. Real estate removed in 2023; €500k fund route remains	Affordability rules tightening; Lisbon asking prices cooling
Spain	+12.2% a year (INE, Q2 2026)	No. Golden visa ended April 2025	High purchase taxes; tourist-let limits
Greece	+5.8% a year nominal (Knight Frank, Q1 2026)	Yes: €400k, or €800k in Athens and top islands	No short-term lets on golden-visa homes
Cyprus	+3.6% a year nominal (Knight Frank, Q1 2026)	Yes: €300k, with income test	Smaller, less liquid market
Malta	+3.0% a year nominal (Knight Frank, Q1 2026)	Residence only: €375k purchase plus fees	Citizenship route closed by EU court

Figure 2. Source: INE; Confidencial Imobiliário; Knight Frank Global House Price Index Q1 2026; programme summaries as of Oct 2026

Portugal remains the darling of the decade, with prices up 13% in the first quarter of 2026 by INE's average sale price and 18.6% by the Confidencial Imobiliário index in June. But Portugal removed property from its golden visa in 2023, and the Bank of Portugal has tightened lending rules to cool things down.

Spain is rising fast too (12.2% a year), but it ended its golden visa in April 2025 and has made clear that buyers who don't live there are not its priority.

Greece is the main EU country that still links residency to a home purchase: €400,000 in most of the country, and €800,000 in Athens, Thessaloniki, Mykonos, Santorini and larger islands. Since 2025, golden-visa homes cannot be let to tourists.

Cyprus and Malta offer residency routes at €300,000 and €375,000 respectively, with extra conditions.

The buying process, step by step

1. Get a tax number. Portugal and Spain need a NIF; Greece needs an AFM. A local lawyer can usually obtain it with a power of attorney, so you don't need to fly over.

2. Open a local bank account. This is often the slowest step, because banks run anti-money-laundering checks on non-residents. Keep your Indian bank statements, ITRs and the source of funds ready.

3. Hire an independent lawyer. Not the agent's lawyer, not the developer's lawyer. Yours. They check the title, any debts tied to the property, planning permissions and, in Greece and Portugal, whether the home is legally licensed for its current use.

4. Sign a promissory contract and pay a deposit, usually 10–30%, sent from India under LRS.

5. Complete at the notary, pay transfer taxes and register the deed. Budget roughly 8–14% on top of the price for taxes and fees, depending on the country and whether the home is new or resale.

After you own it

Here is where many Indian buyers slip up. You must report the property in Schedule FA of your Indian income tax return every year, even if it earns nothing. Rent is taxable in the country where the property is and in India, with credit for foreign tax under the relevant tax treaty. Forgetting to disclose a foreign asset can trigger penalties under the Black Money Act, which are severe enough to wipe out years of gains.

The purchase is the easy part. The paperwork you do every year after it is what keeps the investment clean.

Three mistakes we see often

• Buying the visa, not the property. A €400,000 apartment you can't rent or resell easily is an expensive residence card.
• Ignoring the currency. At about ₹108 to the euro today, a weaker rupee has flattered euro assets. If it reverses, so does part of your return.
• Underestimating running costs. Community fees, local property tax, insurance, a property manager and a tax accountant in two countries add up. Budget 1.5–2.5% of the property value a year.

A worked example: a €300,000 apartment in Portugal

Say a Bengaluru couple want a €300,000 apartment near Porto as a holiday home they can rent out the rest of the year. At ₹108 to the euro, that is about ₹3.24 crore.

• Remittance: each spouse can send up to US$250,000 a year under LRS, so together they can cover the full price in one financial year.
• TCS: 20% on everything above the first ₹10 lakh for each of them, roughly ₹60 lakh in total, collected by the bank and later adjusted against their income tax. That money is locked up until they file their returns.
• Purchase costs: Portugal's transfer tax (IMT) rises with price, plus 0.8% stamp duty, notary and registry fees, and legal fees. Budget roughly 8–10%, or €24,000–30,000.
• Annual costs: municipal property tax (IMI), condominium fees, insurance and an accountant, typically €3,000–5,000 a year for a flat like this.

If they rent it for €1,100 a month on a long lease, the gross yield is about 4.4%. After costs and Portuguese tax on rent, net income lands nearer 2.5–3%. The rest of the return has to come from price growth and currency.

The timeline

A realistic timeline from "we've decided" to "we have the keys" is three to five months:

• Weeks 1–3: shortlist areas, appoint a lawyer, get the tax number and start opening a bank account.
• Weeks 4–8: view properties (in person or by video), make an offer, complete due diligence.
• Weeks 8–12: sign the promissory contract, remit the deposit under LRS.
• Weeks 12–20: remit the balance, sign the deed at the notary, register the property, set up utilities and a property manager.

Which documents to keep ready

• Passport and PAN card
• Three years of ITRs and bank statements showing the source of funds
• Form A2 and the LRS declaration for each remittance
• Proof of address, often required with an apostille
• A power of attorney, if your lawyer will act for you (also apostilled)

Can I buy through a company instead?

Indian rules on overseas direct investment (ODI) govern investments through foreign companies, and they have their own conditions and reporting. For a single holiday home, personal ownership under LRS is usually simpler. For a portfolio, or if you also run a business abroad, ask a chartered accountant whether an ODI structure makes sense.

What about inheritance?

European countries apply their own inheritance and succession rules to property located there, and some impose inheritance tax on heirs. India no longer has estate duty, but your heirs will still need to transfer the title abroad. Make a will that covers foreign assets, ideally drafted with advice in both countries.

Country notes for Indian buyers

Portugal: purchase tax (IMT) is progressive and can reach 6–7.5% for higher-value homes, plus 0.8% stamp duty. Annual IMI property tax is set by each municipality. Rental income for non-residents is generally taxed at a flat rate. Indian buyers often favour Lisbon, Porto and Cascais, but value has moved to the Silver Coast and Setúbal.

Spain: resale transfer tax (ITP) varies by region; new builds attract 10% VAT. Non-residents pay an annual imputed income tax on homes they don't rent out, plus tax on rental income. Watch regional tourist-licence rules closely.

Greece: transfer tax of about 3% on resale homes, plus notary, lawyer and registry fees. New-build VAT has been suspended for several years; check the current status. The golden-visa rules require a single property meeting the threshold and, for standard purchases, at least 120 square metres.

Cyprus and Malta: English-speaking, common-law-based legal systems that many Indian buyers find familiar. Both are small markets, so resale can take time.

Euro, rupee and timing

Because you remit in rupees and buy in euros, the exchange rate on the day you send money matters. Some buyers split remittances over several months to average the rate; others lock in a rate with their bank when they sign the contract. Either way, keep every remittance certificate and bank statement: you'll need them for your Indian tax return, for Schedule FA and when you eventually sell and bring money home.

Questions readers ask us

Can I use my NRE account? If you are a resident Indian, no; NRE accounts are for non-residents. If you are an NRI, different rules apply and the LRS limit doesn't bind you in the same way; take advice.

Does buying a house give me an EU visa? Only in a few countries, with conditions: Greece (€400,000 or €800,000), Cyprus (€300,000) and Malta (residence via a €375,000 purchase plus fees). Residence permits usually come with physical-presence requirements before they lead anywhere near citizenship.

Is now a good time? European prices have risen fast, and the rupee is weak, which makes euros expensive. If you're buying for lifestyle, timing matters less. If you're buying purely to invest, patience may pay.

General information, not legal or tax advice. Rules change, so confirm with a chartered accountant in India and a lawyer in the country you are buying in.

Sources

1. Tickertape, 'TCS on foreign remittance' (Aug 2026)
2. The Portugal News on INE Q1 2026 prices
3. INE Spain, Housing Price Index Q2 2026
4. IBA, The Greek golden visa after the 2024–2026 overhaul
5. Knight Frank Global House Price Index Q1 2026

Figures are the latest published at the time of writing (29 October 2026). Quotes are short excerpts with attribution. This article is general information, not financial, legal, tax or immigration advice.