Deceived Chinese Buyers in European Real Estate – What to Do and How RUE Can Help

The Growing Problem of Real Estate Fraud Affecting Chinese Buyers

Over the past decade, Europe has become one of the most popular destinations for Chinese investors, who are looking for financial returns, lifestyle benefits, permanent residency and access to stable markets. Countries such as Portugal, Greece, Spain and Cyprus have introduced ‘Golden Visa’ programmes that attract thousands of Chinese citizens each year. The prospect of owning property in the European Union, obtaining residence rights and safeguarding family assets in a secure and reputable jurisdiction has generated significant interest – and unfortunately, has also drawn in fraudsters and dishonest intermediaries.

While many property transactions go smoothly when handled through licensed professionals, an increasing number of Chinese investors have found themselves deceived, misled or financially harmed. Scammers exploit the fact that many foreign investors cannot physically visit the property, do not fully understand local laws or place too much trust in unverified agents who speak their language but operate without legal authorisation.

In most cases, victims of fraud discover the deception only after they have transferred substantial sums of money, often amounting to hundreds of thousands of euros. By that time, the ‘developer’ or ‘agency’ may have disappeared, or the property may be caught up in legal disputes or encumbrances. In some cases, buyers not only lose their investment, but also miss out on the opportunity to obtain residence permits, as the property fails to meet the minimum eligibility or registration standards required by EU immigration authorities.

At Regulated United Europe (RUE), we have seen this pattern repeat far too often. Our team regularly receives enquiries from Chinese citizens who believed they were purchasing legitimate real estate for personal use, investment or residency, only to realise that they had been tricked by fake companies, non-existent projects or hidden legal issues.

This issue is not limited to small or inexperienced investors. Even experienced entrepreneurs have fallen victim to such scams due to misleading marketing, falsified documents and misunderstandings about how European property systems function.

RUE’s mission is to protect foreign investors from fraudulent schemes, ensure that every property purchase in Europe is transparent and legally sound, and provide professional support when things go wrong. We specialise in helping Chinese individuals and businesses recover losses, file claims and re-establish legitimate investments under proper legal supervision.

Our message to Chinese investors is clear:

• Do not face these problems alone.
• Don’t let embarrassment or fear stop you from seeking help.
• Legal recourse is possible, but time is of the essence.

Regulated United Europe is here to support you every step of the way, from investigation and recovery to reinvestment and compliance.

Common types of real estate fraud targeting Chinese buyers

As the European property market becomes more international, it also becomes more complex. Differences in legal systems, languages and transaction procedures create fertile ground for fraudulent activities. Chinese investors, in particular, are frequently targeted by individuals and unlicensed intermediaries who exploit cultural and informational gaps. The most common types of real estate fraud encountered by our team at Regulated United Europe (RUE) when assisting deceived clients are listed below.

1. Fake developers or non-existent projects

One of the most widespread scams involves promoting construction projects that either do not exist or are still in the planning phase without the necessary authorisation. Fraudsters set up professionally designed websites and use social media advertisements in Chinese to claim that they represent prestigious European developers. They present glossy images, attractive payment plans and false guarantees of residence rights.

For instance, an investor may be shown architectural renderings of luxury apartments in Lisbon or Athens, alongside forged building permits and ‘official’ correspondence. Once the deposit has been transferred, construction never begins and the company behind the project disappears within months.
These schemes are often orchestrated by shell companies registered under foreign names, making it difficult for victims to trace the perpetrators.

2. Unlicensed or unverified agents

In many European countries, property intermediaries are required to hold professional licences and operate under strict legal frameworks. However, many ‘agents’ targeting Chinese clients operate without any such authorisation. They often claim to be affiliated with legitimate firms, but in reality they are freelancers or interpreters who collect illegal commissions.

These individuals may accompany investors during property viewings, or even appear to assist with bank transfers and residency applications. In truth, they have no legal responsibility and often disappear once funds have been transferred.
In some cases, victims discover that their ‘agent’ was never registered with any real estate association, or that the agency name on their business card was made up.

3. Properties with hidden legal problems

Even when a property physically exists, it may have serious hidden legal issues, such as unpaid taxes, existing mortgages or ownership disputes. Often, buyers are unaware that they are purchasing a property with encumbrances or third-party claims.
Unscrupulous sellers or agents may deliberately withhold this information or provide partial translations of critical documents.

For instance, a villa in Spain may seem legitimate, but the previous owner could have unpaid municipal debts or the property could be subject to inheritance litigation. Once the buyer has registered ownership, the local authorities can still claim payment and the buyer becomes legally responsible for the debt.

4. False promises of automatic residence rights

Another common trap involves misrepresenting the immigration and visa benefits tied to property purchases. Fraudulent intermediaries often claim that buying a property for a certain amount – €250,000 in Greece or €500,000 in Spain, for instance – automatically guarantees EU residency.

In reality, however, residency approval requires strict documentation, proof of a clean title, background checks and government processing. If the property does not meet the eligibility criteria, the investment will not qualify and the buyer may lose both their funds and the promised immigration benefit.

RUE has assisted numerous clients who were told that ‘the residence permit is guaranteed upon purchase’, only to later discover that the property’s registration or valuation did not comply with the official Golden Visa requirements.

5. Contractual Misrepresentation and Translation Fraud

Many investors sign property purchase contracts in foreign languages, such as English, Greek or Spanish, without fully understanding their contents. Dishonest intermediaries or notaries may take advantage of this by omitting important clauses during translation or presenting ‘simplified summaries’ instead of accurate legal translations.

For example, a Chinese buyer may believe that the deposit is refundable under certain conditions when, in fact, the original contract states otherwise. Similarly, the ownership transfer clause may be worded in such a way as to delay legal possession until all payments have been made, leaving the buyer exposed if the developer fails to deliver.

At RUE, we often find that such translation fraud is one of the easiest to commit, yet one of the hardest for the victim to detect until legal problems arise.

6. Misuse of client funds

Another serious issue involves the mishandling of money during property transactions. Some agents persuade clients to transfer funds directly to personal accounts or unverified third-party escrow services. Once the payment has been made, the intermediary disappears.
Even seemingly legitimate agencies may lack segregated client accounts, meaning client deposits are mixed with operational funds. This makes recovery difficult if the company becomes insolvent.

At RUE, we always recommend that all property-related payments are made through verified, licensed escrow services or directly through the buyer’s legal representative’s client account, rather than to individual brokers.

Why These Scams Happen

These fraudulent practices occur largely because foreign buyers rely on trust, language convenience and emotional motivation rather than independent verification. Real estate scammers know that many Chinese investors make decisions remotely, without conducting on-site inspections or hiring separate legal counsel.
As a result, even sophisticated investors can become easy targets when communication is filtered through intermediaries who seem ‘friendly’ or ‘helpful’ but lack professional responsibility.

Real cases we have encountered

At Regulated United Europe (RUE), we regularly handle cases involving Chinese investors who have fallen victim to fraudulent or improperly handled real estate transactions across Europe. Each case tells a story of misplaced trust, insufficient due diligence and a lack of verified legal guidance, all of which could have been prevented with the right professional support.

Below are several examples that illustrate the types of problems Chinese buyers have faced, and how our firm has helped them regain control of their investments.

Case 1: The Disputed Property in Greece

A client from Shenzhen contacted our office after discovering that the apartment she had purchased in Athens – valued at €250,000 and intended for the Greek Golden Visa programme – could not be registered in her name.
The property’s title was subject to a pending court dispute due to inheritance claims among the previous owner’s family members. The intermediary who had arranged the sale had never verified ownership or checked the property’s legal history.

By the time the issue came to light, the investor had already paid the full amount, and the so-called ‘agent’ had become unresponsive.
RUE intervened immediately by engaging local Greek lawyers and liaising with the Hellenic Cadastre (land registry). Through careful negotiation and legal filings, our team managed to recover part of the funds and initiate the purchase of another eligible property, thus ensuring that the client’s Golden Visa application could proceed successfully.

This case demonstrated that legitimate properties can become impossible to register legally if due diligence is ignored.

Case 2: The Non-Existent Agency in Portugal

A young couple from Guangzhou contacted RUE after transferring over €120,000 to a company that claimed to be a licensed Portuguese ‘real estate investment agency’. The company had promised to handle every step of the Golden Visa process, including property selection, tax registration and residence applications.

However, after the payment was made, all communication ceased. The website was deactivated, the phone numbers were disconnected and the provided address turned out to be a rented mailbox in Lisbon.

RUE’s legal team traced the company’s registration records and confirmed that the business had been dissolved several months prior to the payment being made. In collaboration with the Portuguese authorities and the victims’ local police in China, RUE filed formal complaints under both criminal and consumer protection laws. While full recovery was not possible, we helped the couple retrieve some of the funds through bank investigations and facilitated their entry into a legitimate Golden Visa programme with verified developers and escrow arrangements.

This case highlights the importance of verifying all company registrations and payment destinations before transferring funds abroad.

Case 3: Hidden Liabilities in Spain

A businessman from Beijing purchased a seaside apartment in Barcelona as a family investment. The purchase was made through a local broker who assured him that all taxes had been paid and that the transfer of ownership would be immediate. However, months later, the investor received an official notice from the Spanish tax authorities demanding payment of unpaid municipal and property taxes from the previous owner, as well as penalties totalling more than €18,000.

RUE was contacted to investigate the case. Upon review, our team discovered that the purchase contract had been executed without a pre-transaction legal review, and that no ‘nota simple’ (property report) had been obtained from the Spanish land registry. This document would have revealed that the property was subject to several unpaid debts.

Our lawyers negotiated a settlement with the local tax office and regularised the buyer’s property title. RUE then helped the client set up a verified Spanish company to manage future property purchases, ensuring that every subsequent transaction would undergo mandatory due diligence.

This case highlights an important lesson: in Europe, buyers inherit all financial and legal obligations attached to a property, unless these are explicitly cleared before registration.

Case 4: The False Residency Promise in Cyprus

Another case involved a family from Shanghai who were persuaded by an unlicensed consultant that buying a €300,000 villa in Cyprus would guarantee permanent residency for all family members within three months.
However, after the purchase, they discovered that the property was located in a region that was not eligible for the residency programme, and that the ‘consultant’ had no legal right to submit immigration applications. The family risked losing both their investment and their immigration opportunity.

RUE’s immigration lawyers intervened and helped the clients file a complaint through the Cyprus Real Estate Agents Council. They subsequently restructured the family’s investment into a project that met all residency requirements. The family eventually obtained their residence permits lawfully, but only after a costly and stressful detour.

This case illustrates the danger of believing guaranteed residency promises, which are illegal under EU law. Only properly licensed immigration lawyers or authorised representatives can prepare such applications.

Case 5: Misleading Documentation and Translation Fraud in Italy

A client from Chengdu signed a property purchase agreement in Italy with the help of a local ‘consultant’ who claimed to offer bilingual legal translations. The client was told that the document confirmed full ownership upon payment of the deposit. However, the original Italian version of the contract actually included a conditional ownership clause, meaning that the seller retained legal title until final payment was made.
When the seller defaulted and refused to deliver the property, the client discovered that he had no registered ownership rights.

RUE partnered with Italian legal professionals to initiate legal proceedings for fraud and breach of contract. Our team also provided certified translations of all the documents, which helped to demonstrate that the buyer had been misled. The case was successfully settled and the client recovered a significant portion of their losses.

This experience emphasises the importance of having all contracts independently translated and reviewed by licensed professionals rather than intermediaries.

How Regulated United Europe Can Help

When Chinese investors fall victim to real estate fraud or property misrepresentation in Europe, the situation can seem hopeless, especially given the language barriers, jurisdictional differences and lack of local contacts that make it difficult to take action. At Regulated United Europe (RUE), our mission is to bridge this gap by providing professional, multilingual and legally sound solutions at every stage of a property investment or dispute.

Our firm combines in-depth knowledge of European regulatory frameworks with extensive experience of assisting Chinese individuals and companies who have encountered difficulties with property transactions, immigration programmes or investment recovery. We focus on both prevention and resolution, ensuring that no client falls victim to the same mistake twice.

1. Property Due Diligence and Verification

The most effective protection against fraud is to prevent it before it happens.
RUE conducts comprehensive due diligence checks before any transaction is signed or funds are transferred. This includes:

• Verification of property ownership through official land registries;
• Examination of mortgages, encumbrances, liens and ongoing court disputes;
• Confirmation of the developer’s legal status, construction permits, and project registration;
• Review of all transaction documents and translations to ensure compliance with local law.

Our experts liaise directly with land registries, municipal authorities and notaries to confirm that the property is legally clear and that the seller has full ownership rights. This process eliminates the risk of purchasing disputed or encumbered assets, which is a frequent cause of financial loss for foreign buyers.

 2. Verification of developers, agents, and intermediaries

Before working with any intermediary, RUE verifies that they are legally registered, licensed and authorised to represent clients.
We conduct background checks on agencies, developers and individuals, confirming company registrations, licence numbers, tax status and litigation history.
In some cases, our team has uncovered intermediaries who had previously been involved in fraud investigations or were operating under suspended licences.

By engaging RUE at an early stage, investors can be confident that everyone they deal with meets the relevant EU country’s official legal and ethical standards.

3. Legal Representation and Dispute Resolution

For clients who have already fallen victim to fraud or suffered financial loss, RUE provides full support in filing claims and representing their interests before European authorities, courts, or financial institutions.
We work with a network of licensed local lawyers across all EU member states to ensure that each case is handled under the correct national legal framework.

Depending on the situation, we may:

• File civil or criminal complaints against fraudulent companies or individuals
• Initiate bank tracing and fund recovery procedures
• Negotiate settlements and restitution agreements with developers or agents
• We also coordinate with embassies, consulates and financial regulators on cross-border issues

Our multilingual legal team ensures that all proceedings, filings and updates are clearly explained in English and Chinese to maintain transparency at every step.

4. Safe Financial Structuring and Payment Supervision

To minimise financial risks, RUE helps clients structure their property payments through secure channels. We ensure that all deposits and purchase funds are transferred only to verified escrow accounts or client trust accounts maintained by licensed legal professionals.
We never recommend or permit transfers to personal accounts, unregistered companies or non-escrow third parties.

Our compliance officers monitor each transaction, ensuring that funds are only released once all contractual and legal conditions have been met. This approach safeguards clients’ investments and provides clear documentation for audit and residency purposes.

5. Immigration and Residency Legal Guidance

Many Chinese investors purchase real estate in Europe to obtain residence rights through investment programmes such as the Golden Visa schemes in Portugal, Greece and Spain. However, each country has strict legal requirements regarding the type, value and registration of the property, as well as the applicant’s financial and criminal background.

RUE’s immigration law department collaborates closely with real estate specialists to guarantee compliance with national immigration legislation.
We review the property’s eligibility, assist with documentation preparation, coordinate residency application submissions, and ensure the process is fully transparent and legal.

If the investor has been deceived by false immigration promises, we can help restructure the investment into a legitimate programme.

6. Translation, interpretation and legal clarity

Miscommunication is one of the most common causes of loss in foreign transactions.
RUE employs certified translators and bilingual legal experts who provide accurate translations of contracts, property documents and government correspondence.
We ensure that every clause, condition and obligation is fully understood before signing.

This eliminates the risk of signing documents containing misleading translations or hidden clauses, which is a common tactic used by fraudulent intermediaries.

7. Post-Fraud Recovery and Preventive Advisory

Even when losses have occurred, recovery is often possible – provided swift action is taken. RUE assists victims in documenting all communications, payments and contracts in order to build a strong legal case.
We work with local authorities and financial institutions to trace funds, freeze assets and hold fraudulent individuals accountable.

Following recovery or case resolution, we continue to work with clients to establish preventive safeguards for future investments, including company formation, legal compliance and verified property management structures.

Our philosophy is to solve the immediate problem and ensure that our clients can continue to invest in the European market with confidence and safety.

8. Multijurisdictional expertise

Real estate fraud often spans multiple countries. For example, a Chinese investor may transfer funds to an account in Hong Kong for a property in Greece, which is managed by a company registered in Cyprus.
RUE’s strength lies in its multijurisdictional reach. We have partnerships with legal professionals in all EU jurisdictions and work closely with European regulatory authorities.
This enables us to coordinate cases efficiently, even when they involve multiple countries or complex corporate structures.

Why you should always work with trusted advisors

In every European country, property transactions are subject to detailed legal regulations governing ownership rights, taxes, registration and residency eligibility. These regulations differ significantly from those in China and from one EU member state to another.
While the process may appear straightforward, it actually involves multiple layers of legal, financial and compliance checks that only licensed professionals can manage correctly.

Working without proper guidance or relying on unverified intermediaries can result in financial losses and serious legal consequences, including ownership disputes, tax liabilities and invalid residence applications.

For this reason, Regulated United Europe (RUE) emphasises that licensed representation is a necessity, not an option.

1. The difference between licensed and unlicensed advisors

Licensed professionals – such as real estate agents, lawyers, and notaries – operate under government supervision. They must comply with strict professional codes of conduct, maintain liability insurance and are legally accountable for their actions.
Unlicensed ‘consultants’ or ‘intermediaries’, on the other hand, bear no such obligations. They can disappear at any moment, leaving the buyer with no legal recourse.

A licensed advisor:

1. Holds a verifiable registration number with national professional bodies or bar associations.
2. They operate through a regulated legal or corporate structure.
3. They are obligated by law to act in the client’s best interests.
4. They provide written contracts that define responsibilities and fees.

When dealing with property purchases in Europe, it is crucial to verify the credentials of each party before proceeding. RUE assists clients by conducting this verification and by working only with officially recognised and insured professionals in each jurisdiction.

2. The risks of unlicensed or informal assistance

Many Chinese investors fall victim to fraud because they opt for the convenience of “all-inclusive” offers from informal agents who claim to “take care of everything”. These individuals often present themselves as bilingual liaisons or ‘investment coordinators’, but they have no legal right to represent buyers or handle property transactions.

The dangers of engaging such intermediaries include:

• Signing contracts that are invalid under local law.
• Paying deposits to personal or unverified accounts;
• Receiving misleading or incomplete translations of legal documents;
•  Losing eligibility for residence programmes due to procedural errors.
  Being unable to claim compensation because the intermediary is not legally accountable.

In several cases handled by RUE, victims later discovered that their ‘advisors’ had previously been involved in multiple fraud complaints or were operating under suspended business licences. By contrast, when you work with a regulated firm, every step is transparent, traceable and legally secure.

3. The importance of independent legal representation

A common mistake among foreign investors is assuming that a developer’s or seller’s lawyer will also protect the buyer’s interests. In reality, however, these lawyers act on behalf of the seller and have no obligation to the purchaser.

RUE always advises Chinese clients to retain independent legal counsel – a professional who exclusively represents the buyer and ensures that all documentation, payments and registrations serve the buyer’s interests.
This independence is crucial when negotiating contract terms, verifying property ownership and confirming compliance with residency or investment regulations.

Independent legal representation also helps to avoid conflicts of interest – a factor that is often overlooked in informal arrangements.

4. Compliance with European anti-money laundering and tax laws

Licensed advisors are responsible for ensuring compliance with European anti-money laundering (AML) and tax transparency requirements.
Every legitimate real estate transaction in the EU must formally identify the buyer’s source of funds and verify the purpose of the transaction. Failure to meet these requirements can result in funds being frozen, banks refusing to process transactions, or even investigations by financial authorities.

At RUE, we ensure that all documentation and payments meet EU standards, including proof of income, company registration documents and tax declarations.
This compliance protects clients from potential legal scrutiny and establishes a strong foundation for subsequent immigration, tax residency or business activities in the EU.

5. The value of multilingual and culturally aware advisors

Legal accuracy depends not only on expertise, but also on clear communication. Many fraud cases arise because investors misunderstand documents or procedures due to poor translation or cultural differences.

RUE’s multilingual team – proficient in Chinese, English, and the major EU languages – ensures that every client fully understands what they are signing, paying for, and committing to.
We translate both the language and the legal meaning, ensuring complete clarity and transparency at every stage.

Culturally sensitive and professionally trained advisors help Chinese clients avoid misunderstandings and ensure smooth interaction with local authorities, banks, and legal institutions.

6. The Reputation and Accountability Factor

When dealing with large investments – often amounting to hundreds of thousands of euros – trust must be earned through transparency and reputation.
Licensed advisers and law firms such as RUE are subject to professional audits, regulatory oversight and disciplinary review. Our clients’ confidence is protected by our contractual obligations and our reputation in the European legal and corporate sectors.

In contrast, unlicensed intermediaries operate in complete anonymity. If they disappear or cause damage, it becomes nearly impossible to recover funds or prove misconduct.

By choosing a regulated, internationally recognised firm such as Regulated United Europe, you can be sure that everyone involved is traceable, accountable and bound by professional ethics.

7. A Long-Term Partner, Not Just a Transactional Advisor

Finally, licensed advisors offer more than short-term assistance – they provide ongoing, strategic support.
For Chinese investors planning multiple property purchases, business expansion or relocation to the EU, continuity is essential. RUE’s services extend beyond a single transaction to include company structuring, accounting, tax planning and immigration compliance.

This comprehensive approach safeguards clients’ investments long after the property has been purchased and ensures that all future decisions align with EU legal standards.

The European real estate market offers Chinese investors tremendous opportunities – from securing stable assets in a developed region to obtaining residence rights and establishing a foundation for global family relocation. However, these opportunities also attract dishonest individuals who exploit information gaps, language barriers and cultural differences.

Over the years, Regulated United Europe (RUE) has encountered numerous cases of good-faith investors being misled by fake developers, unlicensed ‘advisers’, and seemingly legitimate fraudulent schemes. The common factor in all these cases is not the loss itself, but the lack of proper legal protection and verification at the earliest stages of the transaction.

It is important to understand that investing in European real estate is a legal process governed by complex property, tax and immigration laws. Each signature, payment and document carries legal consequences. Even a minor oversight – such as a missing permit, a mistranslated clause, or an unverified agent – can lead to years of financial and legal difficulties.

RUE was established to prevent precisely these kinds of situations. Our firm combines in-depth knowledge of European legal frameworks, international property regulations and cross-border compliance procedures with a culturally sensitive approach to the expectations and communication style of Chinese clients.

When clients come to us after being deceived, we do far more than simply resolve the immediate issue. We rebuild their trust in the European system by showing them that investing in EU property is both safe and profitable when conducted properly and transparently.

Our Guiding Principles

• Integrity and transparency: we operate under full legal regulation, using verified procedures and licensed partners across all EU jurisdictions.
• Responsibility and accountability: every recommendation we make is backed by legal verification, written documentation and traceable compliance.
• Client-centred service: our approach is always personalised, multilingual and adapted to each client’s specific goals, whether investment, residence or business expansion.
• Cross-border legal expertise: we understand the intersection of real estate law, immigration, tax compliance and international corporate structures.

These principles ensure that every Chinese client receives legal representation and genuine protection for their long-term financial and personal interests in Europe.

A message to those who have been deceived:

If you have already been defrauded in a property purchase, do not remain silent and do not assume that recovery is impossible.
European law provides various mechanisms for claiming compensation, reversing transactions or recovering funds, but success depends on taking timely and structured legal action.

Regulated United Europe will carefully review your situation, gather all relevant evidence, and coordinate with local lawyers, banks, and authorities to pursue every available remedy. Even if full recovery is not possible, legal intervention can often secure partial refunds, prevent further damage and pave the way for a compliant future.

A Safer Path Ahead

For those planning to enter the European property market, RUE provides a safer, fully transparent alternative.
We ensure that every step, from property verification to residence application, is conducted by licensed professionals and involves verified documentation and secure financial channels.
Our Chinese-speaking specialists facilitate continuous communication to ensure clarity and confidence throughout the entire process.

When you work with Regulated United Europe, you are partnering with a regulated European advisory firm that upholds the highest professional standards and acts in your best interests.