Buying property abroad as a couple: spouses and partners

Two people buying a flat or house abroad have one decision that matters more than the choice of street: in whose name the property is registered, and in what form. That choice decides what happens if one of you dies, if you split up, or if one of you wants to sell. It is cheap to make at the notary and expensive to correct later. This article is general information; local rules differ and we flag where you must check.

Four ways to register

• One name only. Simple, but the other partner may have no registered right at all. If you are married, the matrimonial property regime may still give the spouse a claim, see divorce and property abroad. If you are not married, the partner usually has no claim.
• Joint ownership in equal shares. Each owns a defined share, often one half, and can usually sell or leave it by will. This is the common-law "tenancy in common" idea; many civil-law countries have an equivalent called co-ownership by shares.
• Joint ownership with survivorship. On death of one, the whole goes to the survivor outside the will. This idea ("joint tenancy") is well known in English-law systems. In many continental countries there is no direct equivalent, or it exists only through a special clause or contract, so do not assume it.
• Unequal shares. If one partner pays 70 percent, the deed can say 70/30. This avoids later disputes and, in some countries, avoids the tax authority treating the difference as a gift.

Married and unmarried partners

Spouses have a matrimonial regime that works in the background, and often some legal protection for the family home. Unmarried partners usually have much less: no automatic inheritance, no shared-property presumption, and sometimes a higher inheritance-tax bracket for non-relatives. For unmarried couples the deed, a written agreement and a will are the only protection, so they matter more, not less.

Two spouses who live in the EU may also fall under Regulation 2016/1103, which decides which law governs their property, and for succession under Regulation 650/2012, which usually points to the law of the last habitual residence unless a will chooses nationality law. Both are worth a short check with a lawyer before buying.

What happens if one co-owner dies

This is the most important practical question and the answer depends on the form of ownership and the country.

• With shares, the deceased person's share passes under the will or the intestacy rules of the applicable succession law. Heirs, who may include children from a previous relationship, then become co-owners with the survivor.
• With survivorship, where available, the survivor takes the whole.
• Heirs of a foreign property usually need local steps: a certificate of inheritance or notarial deed, a tax return and registration, and in some countries a tax payment before the register will change. See tax residency when relocating for the wider tax picture.

A will valid in the country of residence is not automatically enough for the register abroad. Many owners make a short local will for the property; ask your local lawyer whether that suits your situation.

Who must agree to a sale or a mortgage

• For co-owners by shares, each can usually sell their own share, but selling the whole property needs everyone. Some countries give the other co-owners a right of first refusal.
• For married owners, the spouse's consent may be needed to sell or mortgage the family home even if it is registered in one name. This differs by country.
• If you are buying from abroad with a power of attorney, check who signs for whom, see buying property abroad remotely.

Tax effects

Tax can differ with the form of ownership. Points to check with a tax adviser in both countries:

• Rental income and capital gains may be split by share between co-owners, each taxed in their own residence.
• Equal shares for a partner who did not pay can be treated as a gift, with gift tax or reporting in the partner's country. Gift rules and exemptions depend on the relationship and the country.
• Transfer taxes and notary fees are usually based on the whole price, not on the number of buyers.
• Inheritance tax can differ by relationship; the rate for spouses and for non-relatives often differs.

We do not give figures here because they change; check the current ones before you sign. Our calculators help you with the cost side.

Mortgages in joint names

If you take a loan together, banks usually make both borrowers liable for the whole debt, not only for half. If one stops paying, the other can be asked for everything. Check what happens on divorce or death: the bank is not bound by your private agreement. Lenders to non-residents often ask for both incomes and documents from both. See mortgages for non-residents.

Country examples, with caveats

• Spain. Local law firms report that the notary asks about the matrimonial regime and may apply the Spanish default if you cannot show yours; the default for Spanish couples is often community of acquisitions, but this varies by region. Check.
• Cyprus, Greece, Bulgaria. Co-ownership by shares is a standard form in these systems as far as we know. We have not confirmed survivorship rules, joint-account style structures or the consent rules for each country, so ask a local lawyer.
• UAE. Freehold titles in designated zones are registered to named owners with shares; inheritance for foreigners depends on a will registered locally or on the applicable family law. We could not confirm the details for this article; check with a UAE lawyer.

FAQ

Should an unmarried couple register in equal shares? It depends on who pays and on gift and inheritance rules. Unequal shares reflecting payments are common. Get local advice and put the agreement in writing.

Can I leave my share to someone other than my partner? With shares, usually yes, within the limits of forced-heirship rules of the applicable law. With survivorship, the whole usually goes to the survivor.

Does the notary check whether we are married? Often yes. Bring your marriage certificate and any marriage contract, apostilled or translated if requested.

Is it cheaper to register in one name? The purchase taxes are usually based on the price, so not much. The risk is on the family side, not on the fee side.

Can we change the form of ownership later? Usually yes, by a new deed, but it can trigger fees and tax. Decide before you sign.

How we help

D.H. Realting is a trilingual platform that finds properties abroad and coordinates independent local lawyers and tax advisers, who can advise on the form of ownership that fits your family situation. See also the total cost of ownership. This text is informational and is not legal, tax or investment advice. Verify current rules with a qualified professional in the relevant country.