How to Avoid Property Scams When Buying Abroad

The main scams when buying property abroad are fake listings that take a deposit, payment diversion through hacked or spoofed emails that change the bank details at the last minute, seller impersonation with forged identity and documents, and genuine sellers who hide legal problems. You protect yourself by hiring your own lawyer, getting the registry record independently, never paying a seller’s personal account, and confirming bank details by phone using a number you already trust. A one-source report describes a 2026 case in Marbella where a real estate firm lost €2,000,000 to an email scam, which shows that professionals are targets too. This guide explains each scam, the red flags, the checks that work in Spain and Portugal, and what to do if you think you have been targeted. It is general information, not legal advice.

What are the main scams?

Scam	How it works
Fake listing and deposit diversion	A phantom listing with stolen photos and a below-market price; the scammer poses as an absent owner and pressures you to pay a reservation deposit quickly.
Payment diversion (email interception)	Criminals hack or spoof the email of an agent or lawyer and send a last-minute change of bank details, so your payment goes to their account.
Seller impersonation and title fraud	A criminal uses forged ID to pose as the owner, often of an empty, mortgage-free or elderly-owned home, with fake or outdated title documents.
Legal-issue traps	The seller is genuine but the property has undisclosed problems, such as an unpermitted pool or unpaid community fees. This is costly rather than criminal.
Spoofing and pressure	A fake email address, phone number or website that looks like a trusted contact, combined with urgency.

What are the red flags?

Urgency, or claims that another buyer is about to act, used to make you skip checks.
A reservation or holding deposit to be paid to a private account.
A seller who cannot show the property in person or will not accept a notary.
A lawyer or agent recommended and paid by the seller, which creates a conflict of interest.
Last-minute changes to bank details.
A price far below the local market.
Cash-only sales, which can signal an illegal conversion.
Resistance to being checked: a legitimate professional expects you to verify them.

How do you verify the seller and the property?

Hire your own lawyer. The lawyer should work only for you and check permits, licences, taxes and contract protections; see lawyer fees in Spain.
Get the registry record independently. Do not rely on documents supplied by the seller. In Spain the key document is the nota simple from the official registry, which shows the owner and any debts or charges. In Portugal ask your lawyer for the registry certificate.
Check identity and authority. Meet the seller, or the holder of a valid power of attorney, at the notary; see the power of attorney guide.
Check the legal status. In Spain, unpaid community fees and the IBI property tax stay with the property, so get a certificate from the community; see community fees and running costs and illegal builds. In Portugal, the occupancy licence (alvará de utilização) is critical, and older rural properties are more likely to lack one; see rural property in Portugal.
Know local prices. Research typical prices in the area so that you can spot an offer that is too good to be true.
Check the businesses. Look at reviews, regulatory status and accreditation of agents, developers and lawyers, and ask professionals to prove who they are.

How do you pay safely?

Pay only into the account of your own lawyer, a notary’s client account or a regulated escrow service, never a seller’s personal account.
Learn how deposits are normally handled in the country. One source says Spanish transactions commonly use banker’s drafts, and UK deposits go to a solicitor. Ask your lawyer what is usual for your case.
Confirm every set of bank details by phone, calling a number you already trust and not one in the email.
Be suspicious of any change of bank details, especially close to a payment date.
Send a small test payment first only if your lawyer agrees, and keep the receipts.
Use a regulated currency provider for the transfer; see how to transfer money.

What would a loss look like?

As an illustration, if you pay a €30,000 deposit (≈ £25,300 / $33,600) to a fake account, recovery depends on how fast you tell your bank and the police, and is not guaranteed. A deposit of this size is about 12% of a €250,000 home, which is about the same as the usual buying costs, so the loss could equal all the taxes and fees you had planned to pay. This is an illustration only.

Conversions are approximate and use the European Central Bank reference rates of 14 October 2026 (€1 = £0.844 = $1.120). Rates move every day.

What should you do if you think you are being scammed?

Stop all payments and do not reply to the sender.
If you have paid, call your bank at once and ask whether the transfer can be recalled, and give the details.
Report the case to the police in the country where you are and, if you know it, in the country of the property.
Tell your lawyer and the real agent or notary by phone, using numbers you already trust.
Change the passwords of the email accounts involved and check for forwarding rules you did not create.
Keep every email, message and receipt as evidence.

How do the scams relate to the legal traps?

A genuine seller can still cost you money. Undisclosed works, unpaid community charges or missing licences are not crimes in every case, but they can be as expensive as a scam. The independent checks above protect against both. See should you buy property abroad for the wider risks, and the Spain buying guide and the Portugal buying guide for the order of the checks.

What are the common mistakes?

Paying a deposit before the legal checks.
Using the seller’s lawyer or the seller’s documents.
Trusting an email that looks like it comes from your lawyer.
Not confirming bank details by phone.
Transferring money outside the process because of urgency.
Buying from a listing you found only online without seeing the property.

How should you deal with agents and developers?

Most agents and developers are honest, and a good one will welcome your checks. Ask for their registration and company details, look them up in the official registers and the reviews, and ask for references from foreign buyers. Visit the office or the development, and compare the contract with the plans and the licences. Never sign a document you do not understand: ask for a translation and have your lawyer read it first. If an agent offers to “handle everything” for you, including the lawyer and the money, you lose the independent check that protects you.

How do you spot a fake listing?

Search the photos online to see if they appear on other sites with different details.
Compare the price with similar homes in the same town.
Ask for a video call of the property and a visit by someone you trust.
Check that the agency or the owner exists and that the phone number and the email domain match the official website.
Be careful with listings that move you quickly to private messaging or an unofficial payment method.

What about powers of attorney and remote purchases?

Buying remotely is legitimate, and a power of attorney is normal, but it gives someone authority to sign for you. Use a lawyer you chose, limit the power to the specific purchase and amount, keep the original, and check the notary’s record. Do not sign a general power of attorney for a person you met online.

Frequently asked questions

What is the most common property scam when buying abroad?

Payment diversion, where a hacked or spoofed email changes bank details at the last minute, and fake listings that take a deposit.

How can I check that the seller owns the property?

Have your own lawyer obtain the official registry record, such as the nota simple in Spain, and check identity at the notary.

Where should I send the deposit?

To your own lawyer’s account, a notary’s client account or a regulated escrow service, never to a seller’s personal account.

Should I use the lawyer the seller recommends?

No. A lawyer recommended by the seller has a conflict of interest. Choose your own.

What if I already sent money to a wrong account?

Call your bank immediately, report to the police and tell your lawyer. Recovery is not guaranteed.

This is general information, not legal or tax advice. Rules and rates change, and your situation may differ. Confirm the figures with the tax authority and a qualified lawyer or tax adviser before you commit. Facts last checked on 16 October 2026.

Sources

Official sources (check these for the current rule):

Also cross-checked against published guides, because practice varies between notaries, registries and banks:

At a glance