Everything above the asking price — transfer taxes, legal fees, agency commission, currency spread, annual taxes, service charges and the cost of eventually selling.
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Get Local AdviceThe asking price is the smallest surprise in an overseas purchase. Depending on the market, completion costs range from about 3% to 14% of the price, and the variation between markets is larger than most buyers' entire contingency budget. As a planning baseline: Dubai runs about 6–8% (4% transfer fee, registration, roughly 2% agency, plus mortgage registration). Portugal is about 6–8% (IMT transfer tax up to 7.5%, 0.8% stamp duty, notary and legal). Spain is the most expensive of the four at 10–14% (6–10% regional transfer tax on resales, or 10% VAT plus stamp duty on new-builds, plus notary and legal). Thailand is the lightest at roughly 3–6%. Write the number down before you make an offer, and hold back an additional 1–2% contingency. Buyers who budget only for the deposit and the price are the ones who end up under pressure at completion, which is exactly when you least want to be rushed.
On a EUR 400,000 purchase, a 2% bank spread costs EUR 8,000 — more than your legal fees. It is also the most avoidable cost in the entire transaction, and it is routinely ignored because it never appears on a settlement statement. Compare your bank against specialist currency providers, and ask about the total cost including any transfer fee rather than the headline rate. If your completion date is months away and the deposit is already committed, ask whether a forward contract makes sense to lock the rate. That is not speculation; it is removing an exposure you never wanted. Remember the exposure continues after purchase. Mortgage payments, service charges, taxes and eventual sale proceeds all convert too, so factor the ongoing spread into your running-cost model.
Recurring costs vary enormously in structure. Spain charges IBI municipal tax at roughly 0.4–1.1% of cadastral value, plus community fees, and taxes non-resident owners on imputed income even when the property sits empty for personal use. Portugal charges IMI at 0.3–0.45% annually, with an additional AIMI surcharge above EUR 600,000 of rateable value per owner. The UAE has no annual property tax and no income tax, but freehold apartment service charges of AED 10–30 per square foot a year are substantial and vary sharply by building. Thailand's Land and Building Tax is very low for residential use, but building maintenance fees and the cost of managing a property remotely are real. A practical planning rule across markets is 1–2% of property value a year in combined running costs — lower for a newer, well-managed apartment, higher for a standalone house with a pool and a garden. Ask for the last two years of actual service-charge statements before you buy; the projected figure in a brochure is frequently optimistic.
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Get Local AdviceIf you let the property, rental income is generally taxable where the property sits, regardless of where you live. Non-resident rates differ from resident rates and often restrict deductions: Spain allows EU/EEA owners to deduct expenses at 19% but taxes non-EU owners at 24% of gross. Portugal applies a flat 25–28% to non-residents unless you elect for aggregation. You will usually also need to declare the income in your country of residence. Double-taxation treaties normally prevent you paying twice, but they do not remove the reporting duty, and this is the most common compliance failure among expat landlords. Keep clean records of gross rent, agency and management fees, maintenance, insurance and loan interest from day one — reconstructing three years later is expensive. Where ownership sits in a company or trust structure, get advice specifically on how income and eventual sale proceeds are taxed under that structure, in both countries, before you commit to it at purchase.
Exit friction of 5–8% of sale price is a reasonable planning assumption in most markets. That typically comprises agency commission of 2–5%, capital gains tax where applicable, legal costs, and any withholding applied to non-resident sellers. Spain, for instance, withholds 3% of the sale price from non-resident vendors against their capital gains liability. Holding period sometimes matters to the rate, and primary-residence relief may be available if you are tax-resident locally, so establish the position before you buy rather than in the year you want to sell. Structures that seemed clever at purchase are often expensive to unwind. Finally, factor liquidity. In thinner markets, the honest answer to "how long will it take to sell?" may be nine months at a discount to asking. That is a cost too, even though it never appears on an invoice.
Typically 3–14% depending on the market. Dubai is about 6–8%, Portugal 6–8%, Spain 10–14% and Thailand 3–6%. Add a 1–2% contingency and remember the currency conversion spread, which can quietly exceed your legal fees.
Plan for 1–2% of property value a year in combined running costs: local property tax, building or community fees, insurance and maintenance. Ask for two years of actual service-charge statements rather than relying on projected figures.
Yes. Rental income is taxable where the property is located, usually at non-resident rates with limited deductions, and normally must also be declared where you are resident. Double-taxation treaties prevent paying twice but not the obligation to report.
Budget 5–8% of the sale price, covering agency commission, capital gains tax where it applies, legal costs and any non-resident withholding. Confirm the capital gains position before you buy, not when you want to sell.
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