Hidden costs when buying property abroad

Many first-time investors budget only for the property price. In reality, an additional 20–30% in costs must be factored in from the start.

One-off purchase costs
Purchase taxestransfer tax / ITP / VAT
6–10%
Lawyer & notarydue diligence, contracts
1–2%
Renovation & furnitureif unfurnished / unfinished
5–15%
Annual running costs
Property management% of rental income
10–20%
Annual property taxIBI, ENFIA, IMI...
0.3–1.3%
Insurancebuilding + liability
0.2–0.5%
Utilities & maintenancecommunity fees, water, power
1–3%
Total on top of price
+20–30% above property price

Budget a minimum buffer of 15% above the property price for associated costs.

Property budget

€150,000

Actual total cost

€180,000 – 195,000

+30,000 – 45,000 on top

Property budget

€250,000

Actual total cost

€300,000 – 325,000

+50,000 – 75,000 on top

Property budget

€500,000

Actual total cost

€600,000 – 650,000

+100,000 – 150,000 on top

All amounts in euros. Ranges depend on country, property type and rental strategy. Sources: PwC Tax Summaries, Global Property Guide, VirtoProperty data.

virtoproperty.com