Plain-English guides to buying, owning and selling property abroad.

What it really costs to buy property abroad

The purchase price is only the beginning. Depending on the country, expect to add anywhere from 5% to 15% on top for taxes, legal fees and registration. Budgeting for these upfront is the single most common thing first-time overseas buyers get wrong.

Typical additional costs by country

Costs buyers often forget

• Currency exchange spread — moving a large sum through a high-street bank can cost 2–4% more than a specialist FX broker.
• Independent legal fees — typically 1–2% of the price. Never rely solely on the seller's or developer's lawyer.
• Ongoing ownership taxes — e.g., Spain's non-resident imputed income tax, France's taxe foncière, community/HOA fees.
• Survey costs — structural surveys are not customary everywhere, but skipping one on an older property is a false economy.

The overseas buying process, step by step

Every country has its own quirks, but most international purchases follow the same broad sequence. Knowing the shape of the process helps you spot when something is being rushed or skipped.

1. Research and viewing trips. Shortlist areas, visit in more than one season if you can, and compare listings across portals — international marketplaces such as Club Property are useful for comparing prices across countries side by side.
2. Appoint an independent lawyer in the destination country before signing anything. They check title, debts attached to the property, planning status and licences.
3. Obtain local identification numbers where required (e.g., Spain's NIE, Portugal's NIF) — you usually can't complete without one.
4. Reservation and preliminary contract. A deposit (commonly 10%) is paid; in many countries walking away after this stage means losing it, while the seller pulling out may owe double.
5. Financing. Non-resident mortgages typically cover 50–70% of value, less than locals get. Get an agreement in principle before making offers.
6. Completion before a notary. The deed is signed, funds transferred, and the property registered in your name. Insist on seeing proof of registration afterwards.

Red flags to walk away from

• Pressure to sign a reservation "today" before a lawyer has seen it.
• Properties without a habitation licence or with unresolved planning issues — common in some coastal regions.
• Requests to declare a lower price at the notary than you actually paid.
• Off-plan purchases without a bank guarantee protecting your stage payments.

Renting out an overseas property: what owners need to know

Rental income can offset ownership costs, but the regulatory picture has tightened sharply in recent years, particularly for short-term holiday lets in Europe.

Licensing is now the norm

Many popular destinations require a tourist-rental licence, and some cities have frozen or capped new licences altogether. Before buying with rental income in mind, verify that the specific property (not just the area) can legally be let short-term — and that the licence transfers with the sale.

Tax in two countries

Rental income is generally taxable in the country where the property sits, and often must also be declared in your home country, with double-taxation treaties preventing you paying twice in full. Non-resident landlords frequently face flat withholding rates and, in some countries, fewer deductible expenses than residents. A cross-border accountant usually pays for themselves.

Practicalities that make or break returns

• Local management typically costs 15–25% of rental income for holiday lets — factor it in from the start.
• Realistic occupancy for seasonal coastal lets is often 15–25 weeks a year, not 52.
• Community rules can prohibit short-term letting even where the law allows it — check the community statutes before purchase.

Selling property to international buyers

If your property appeals to overseas purchasers — a coastal home, a city apartment in a relocation hotspot, or anything near an international school or airport — marketing beyond your local portal can widen the buyer pool considerably.

How to reach buyers abroad

• List where international buyers search. Alongside your local agent's portal, global marketplaces like clubproperty.com put listings in front of buyers browsing across borders.
• Prepare documentation in advance. Foreign buyers' lawyers will ask for title deeds, energy certificates, licences and community fee statements early — having them ready shortens the sale by weeks.
• Price in context. International buyers compare your asking price against other countries, not just the street next door. Look at what equivalent money buys in competing destinations.
• Photograph for someone who can't visit. Overseas buyers often shortlist purely from photos and video tours; floor plans and honest wide shots outperform heavily edited images that disappoint on viewing.

Seller-side costs to expect

Capital gains tax applies in most countries, sometimes with a withholding taken at completion for non-resident sellers (for example, a percentage of the price retained by the buyer's side and paid to the tax office on account). Agent commissions vary widely by country — from around 1% to 6% — so clarify who pays and what's included before instructing.