The Hidden Costs of Buying Property Abroad (and How to Plan for Them)

When people imagine buying a home overseas, they usually picture the sunny terrace, not the bill from the notary.

But here’s the truth — the purchase price is just the start. If you don’t plan for the extra costs, you could end up stretching your budget or cutting corners you didn’t want to.

After helping hundreds of clients buy property abroad, I’ve seen the same surprise costs catch people out time and again.

Here’s your clear, no-nonsense guide so you can plan properly and avoid any nasty shocks.

 1. Legal & Notary Fees

Every country has its own legal process — in Spain and Portugal, you’ll pay notary and land registry fees. In places like Bali, you’ll need a notary and a local legal adviser to navigate leasehold rules.
Typical cost: 1–3% of purchase price.

 Elly’s Tip: Always use an independent lawyer who works for you, not the seller or developer.

 2. Taxes & Stamp Duties

From transfer taxes to stamp duty, these are unavoidable. Some countries (like Portugal) calculate tax based on the official property value, not the sale price — and it’s rarely lower.
Typical cost: 2–10% depending on location.

 3. Currency Exchange Fees

If you’re transferring large sums from one currency to another, even a small rate change can cost thousands.

Example: On £200,000, a 2% worse rate is £4,000 gone.
Solution: Lock in your exchange rate with a forward contract (see my previous blog)

 4. Renovation & Furnishing

Many overseas properties — especially resale bargains — need updates. Even “ready to move in” homes might be sold unfurnished, meaning you’ll be buying everything from beds to cutlery.
Typical cost: 5–20% of purchase price.

 5. Ongoing Maintenance & Service Charges

If your property is in a resort, gated community, or apartment block, there’ll be annual service fees. And don’t forget local property taxes, utilities, and gardening or pool care.

Typical cost: £500–£5,000/year depending on property type.

 6. Travel Costs

Unless you’re moving full-time, factor in flights, car hire, and insurance for regular visits.

 7. Insurance

You’ll likely need separate home insurance in your host country, and if you rent it out, landlord or short-term rental coverage too.

 Planning Ahead is Everything

Add up the purchase price and the “hidden” extras, and you could easily be looking at 10–20% more than you first thought.

But when you plan for it, nothing catches you off guard — and you can focus on enjoying your new home.

Thinking about buying abroad?

I can help you get a clear budget with all costs factored in before you commit.

 WhatsApp: +447796174253
 elly@internationalpropertyalerts.com
 www.internationalpropertyalerts.com