Helen France, 46, from Rotherham, claims her dream Spanish property in Alicante became a "living nightmare" when she got her property back from squatters to discover extensive damage.
The home owner claims she initially lost £10,000 on unpaid rent and bills, solicitors fees and damage to her property.
However, she says that since her house was returned, her debts have grown.
Ms France said that the "tenants from hell" entered her home last year, but have now left.
But the extent of damage means the single mum-of-one may have to lose the property completely destroying her dreams of one day moving there permanently.
She purchased the property in the Orihuela province in the Spanish resort in December 2015, initially using it as a holiday home before she decided to let it out in January 2018 to save enough money to enable her to move there permanently.
She purchased the home abroad with her life savings and intended it to be a place of solace and eventually inheritance to gift to her daughter Hope, 21.
However, the mum claims her dreams have turned to dust after the tenants destroyed her home - throwing furniture out of windows, breaking walls and flooring and accumulating unpaid electricity bills of more than 250 euros per month.
Ms France moved to Alicante full-time in December last year and assumed she could move into the property, but claims months of eviction notices went ignored and she claims physical threats were made against her.
"They threatened to kill me, even leaving a knife wedged in the sofa with a threat on my life," she said.
"The entire situation has left me beyond heartbroken - the house isn't even habitable at the moment.
"I've always been independent but this situation - it's truly brought me to my knees.
"I was a trusting person, but I lost everything.
"I was even put on medication as I was anxious, battling depression, all whilst trying to live the dream I'd saved up for for so long."
The single mum said that her lawyer and letting agent have reach dead ends against Spanish law because of its protection for tenants, which has left her no option but to put the eviction notice through the courts at her own expense.
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