Why a Portuguese apartment purchase fell through – and what it taught us about Estonia's market

Experienced broker Oljana Kallson explains why more and more Estonians are considering purchasing real estate abroad and what difficulties await them in Spain and Portugal. Estonia's property market stands out as notably simpler and more transparent in comparison.

Global uncertainty is pushing an increasing number of wealthy Estonians to look towards foreign real estate markets. Spain and Portugal are among the most popular destinations – countries where the sun shines more often and prices have seemed attractive so far. But as broker Oljana Kallson, with years of experience, explains, the purchasing process there may not be easy at all.

"Because the situation in the world is unsettled, people think they'd rather sell an apartment here and buy property in Spain or Portugal. Buying real estate in those countries may not always be straightforward – it requires patience," says Kallson. From her experience, Portuguese property transactions can stretch into months-long processes where bureaucracy, language barriers and different legal standards create unexpected obstacles for buyers.

The Portugal trap: patience put to the test

One specific case where an apartment purchase in Portugal fell through due to unforeseen obstacles clearly illustrated what needs to be considered when buying abroad. Local brokers may not communicate as quickly with foreign buyers, notarial processes are longer and obtaining a mortgage can prove difficult. Additionally, one must account for tax obligations and additional costs that are not typically encountered in Estonia.

Estonia's market: simplicity is value

Compared to Southern European markets, Estonia's real estate market stands out distinctly in a positive light. Digital signatures, transparent transaction processes and a functioning notarial system make purchasing here considerably smoother. According to Kallson, many buyers don't appreciate this value until they've experienced for themselves what it means to buy property in a country with lower levels of digitization and thicker bureaucracy.

Experts advise that when buying real estate abroad, always engage a local lawyer and expect that reaching a deal may take several times longer than in Estonia. Patience and thorough preparation are the keys to a successful foreign property purchase.