The Full Cost Of Owning Property Abroad: Beyond The Purchase Price

Transaction costs hit at the very beginning. From one market to another, these may cover a cheap property in france transfer tax, notary fees, registration fees, legal fees and broker fees. As a rough planning figure, set aside extra funds beyond the price itself, then check the exact local rates.



Annual property taxes follow. Rates vary substantially, and a number of markets apply a separate rate houses for sale zagreb non-residents. If the home stands vacant for much of the year, vacancy taxes may apply.



Community fees are easy to underestimate. An apartment in a managed building with a pool, landscaping and shared parking carries regular fees that run on regardless of occupancy. Obtain recent accounts from the management company prior to purchase, and look for upcoming renovation projects.



Distance adds a category of its own. Someone must handle keys for maintenance visits, deal with correspondence from the authorities, and arrange the work of contractors. Professional management typically charges a share of rental income, and going without it tends to become costly in the long run.



Insurance, utilities and eventual selling costs finish the calculation. Capital gains tax often applies even to a non-resident owner, and the resident rate is not always the one that applies. A sensible test involves building a five-year running-cost estimate before making an offer — the total generally lands above the initial estimate.