The Real Cost Of Foreign Property Ownership: Beyond The Purchase Price

Closing costs arrive first. Depending on the country, they typically include a property transfer tax, notary costs, registration fees, legal fees and broker fees. As a working assumption, reserve a meaningful percentage on top of the price, then check the exact local rates.



Annual property taxes come next. The rates differ enormously, and certain jurisdictions charge a separate rate for non-residents. Where the buying property in tenerife sits empty most of the time, extra charges can apply.



Service charges are easy to underestimate. A flat in a development with shared gardens, a lift and shared parking comes with recurring costs that run on whether you are there or not. Ask for the building's financial records before you commit, and check on upcoming renovation projects.



Being far away creates a category of its own. A local manager must be available for leaks and repairs, receive letters and bills, and organise repairs. Property management usually takes a share of rental management in san buono income, and going without it often becomes costly in the long run.



Insurance, running costs and the cost of selling finish the picture. Tax on the sale often applies when a non-resident sells, occasionally at a higher rate. A useful exercise is to build a five-year cost model before you commit — the total generally lands above the initial estimate.