Buying property abroad is a big step, and an exciting one. Whether you have your sights set on a bustling city or a quiet coastal town, the Mediterranean or the Alps, a clear, confident budget is the first step to making it happen. 

Getting to grips with the full financial picture, from legal fees and local taxes to currency exchange and ongoing costs, puts you in control. Rather than holding you back, a well-planned budget helps you make informed decisions, avoid surprises, and focus on what really matters: finding the right property for you.

In this guide, we’ll show you how to create a budget that aligns with your overseas property goals, enabling you to move forward with clarity and peace of mind.

Understand the full cost of buying property overseas

When budgeting for a property abroad, it’s important to look beyond the headline listing price. Several additional costs can significantly affect your final spend. These usually fall into two categories: one-off costs you’ll need to cover at the time of purchase, and ongoing costs you’ll be responsible for once you’ve got the keys to your new place in the sun.

Costs when you purchase the property

When budgeting for a property abroad, it’s important to look beyond the advertised listing price. Several one-off costs can significantly impact your total spend, especially in the early stages of the purchase. These typically fall into a few key categories:

  • Legal fees and notary charges: You’ll likely need legal advice in both the UK and the country you’re buying in. In many countries, a notary is also required to oversee the transaction. These professional services come with fees that should be built into your budget.
  • Estate agent commissions: The estate agent managing the sale may charge a commission, which is typically paid by either the buyer, the seller, or split between both, depending on local practices.
  • Stamp duty or local property taxes: Many countries impose purchase taxes that vary widely by region. These are typically due at the point of sale.
  • Surveyor or valuation reports: While optional, these reports can help you understand the property’s true condition and value, reducing the risk of post-purchase issues.
  • Furnishing or renovation costs: If the property is unfurnished or in need of updates, be sure to account for these one-off costs. Costs vary widely depending on the country, region, and condition of the home, so it’s a good idea to research typical prices or speak to local contractors for ballpark figures.

Ongoing costs after you purchase the property

Owning a property abroad comes with ongoing expenses that can add up over time. These recurring costs should be built into your long-term budget to give you a realistic view of what ownership will look like, especially if you’re not living there full time.

Here are some of the most common ongoing costs to plan for:

  • Annual property taxes: Most countries charge annual property taxes, based on the home’s value and local tax rules. Rates can vary significantly by region, so it’s important to check what applies where you’re buying.
  • Community or maintenance fees: If you’re buying within a gated community, apartment block or resort-style complex, there may be regular charges for the upkeep of shared spaces like gardens, lifts, or pools.
  • Utilities (electricity, water, internet): Day-to-day running costs vary between countries and may fluctuate seasonally, particularly if your property relies on air conditioning or heating.
  • Property insurance: Insurance is essential to protect your home against risks like fire, flooding, or theft. If you’ve taken out a mortgage, it may also be a requirement.
  • Property management or letting agent fees:
     If you won’t be living in the property year-round, you might need a local agent to manage maintenance or oversee short- or long-term rentals. These services come at a cost but can offer peace of mind.

Including these in your budget ensures a more accurate picture of the true cost of ownership and helps you avoid financial surprises down the line.

Factor in currency exchange and transfer fees

One of the most common pitfalls when budgeting for a property abroad is overlooking the impact of exchange rates. Even small shifts in the exchange rate can affect your total costs, potentially stretching your budget further than expected.

Working with a currency specialist, rather than relying solely on a high street bank, is often a smart way to manage large international transfers. Currency specialists typically offer more competitive exchange rates, tailored support, and added flexibility when it comes to timing your transfers. In some cases, they may also help you avoid unnecessary fees, giving you better value for your money overall.

Get clear on mortgage and financing options

If you don’t have the funds to buy a property outright, you’ll need to explore your mortgage and financing options. These can vary significantly depending on your nationality, the country you’re buying in, and your residency status.

Here are a few routes to consider:

    • UK-based mortgages: Financing through a UK lender can feel more familiar, especially if your income is based in the UK and you’re comfortable with UK regulations. However, fewer UK banks offer overseas mortgages, and interest rates may not be as competitive as those available locally.
  • Mortgage options with foreign lenders: Local lenders may offer more competitive rates and flexible terms, but the application process can involve extra paperwork, language barriers, and currency risks, particularly if your income is in pounds.
  • Releasing equity from your UK property: If you already own a home in the UK, releasing equity can be a flexible way to fund your overseas purchase. Just be sure to consider the long-term interest costs and repayment responsibilities that come with it.

How deposit size, interest rates, and currency impact your purchase

When exploring your overseas mortgage options, it’s important to consider the additional factors that can affect the true cost of borrowing. Here are three key elements to keep in mind:

Interest rates

Interest rates vary from country to country and are shaped by each nation’s central bank and wider economic environment. As a result, the same property price could carry very different borrowing costs depending on where in the world you choose to buy, making interest rates a crucial point of comparison.

Deposit amounts

Your deposit size, interest rate, and loan term all influence your monthly repayments. A larger deposit typically means lower interest rates and more manageable repayments. On the other hand, higher rates or longer loan terms increase the overall amount you’ll pay back, whether you’re buying in the UK or abroad.

Currency

Changes to the exchange rate can affect everything from your initial property purchase amount to your mortgage repayments. For your property purchase, products like Forward Contracts can be a great option to lock in today’s exchange rate and protect your budget from future rate fluctuations. 

If your mortgage is in euros but your income is in pounds, you could be exposed to currency risk. In this case, exchange rate fluctuations may affect the affordability of your repayments. It’s worth speaking with both local lenders and independent currency specialists to fully understand the risks and options.

Research local property markets and living costs

Prices and fees vary significantly between countries and even between regions within a country. Budgeting effectively means doing local research to get a full picture of what your money can buy, and what costs may crop up along the way.

What are typical per-square-metre prices in your target area? Property values can vary dramatically depending on whether you’re buying in a popular tourist region, a rural village, or a city centre.

Are there additional closing costs specific to that region? Some areas may have unique taxes, fees, or administrative charges that aren’t obvious at first glance.

How do everyday living costs compare to the UK? Things like groceries, fuel, public transport, and healthcare can be significantly cheaper or more expensive depending on the country or region.

How does the interest rate environment compare? Mortgage interest rates can vary between countries and may impact your borrowing power or monthly repayments more than property prices themselves.

Does the area experience seasonal changes? In holiday hotspots, prices and population levels can shift dramatically between peak and off-peak seasons which is something worth factoring into both lifestyle and rental plans.

Leave room for unexpected costs

Even with the best planning, unexpected costs can crop up. From last-minute legal issues to emergency repairs or exchange rate swings, surprises are part of the process, especially when navigating a foreign market.

Some of the most common unplanned costs include:

  • Emergency repairs or maintenance
  • Additional tax bills or local levies
  • Fluctuations in exchange rates
  • Legal delays or added admin fees such as unexpected document translation costs

To stay on the safe side, it’s wise to build in a 5–10% buffer on top of your total budget. This gives you peace of mind and flexibility, helping you avoid stress if things don’t go exactly to plan.

Work with trusted professionals

Accurate budgeting is easier (and far less stressful) when you have the right professionals guiding you:

  • A bilingual solicitor or legal advisor to review contracts and make sure everything complies with local laws
  • A qualified estate agent with insight into the local property market and pricing trends
  • A currency specialist to help you manage international payments and protect your budget from exchange rate fluctuations

Ready to start planning your budget? 

Creating a realistic property budget abroad is about more than just the purchase price. From legal fees to ongoing costs, currency risk to contingency funds, a well-structured budget can make all the difference.

With the right strategy and expert support, you can move forward with confidence. Want to learn more about buying property abroad? Browse our range of overseas property buying guides for practical insights you can use straight away to plan your budget for some of the world’s most popular overseas destinations for British buyers. You can also download our property buying toolkit, which includes a budget planner to ensure all of your property plans stay on track.

 

Written by Lumon for Rightmove.

This publication is provided for general information purposes and does not constitute legal, tax or other professional advice from Lumon or its subsidiaries, and it is not intended as a substitute for obtaining advice from the relevant professional services. We make no representations, warranties or guarantees, whether expressed or implied, that the content in the publication is accurate, complete or up to date.