It’s easy to focus on the listing price when you’re buying property abroad, but that’s rarely the whole picture.

Whether you’re planning for retirement, searching for a sun-soaked getaway, or making a long-term investment, there are often hidden costs that can catch you off guard. These extra expenses vary from country to country, and if you’re not prepared, they can significantly affect your overall budget.

In this blog, we’ll highlight some of the most common hidden costs of buying property abroad, and how you can plan ahead to avoid surprises.

1. Local property taxes when you buy your property

One of the first hidden costs buyers encounter when purchasing property overseas is the property transfer tax. Sometimes called stamp duty or registration tax, property transfer tax is a one-off fee, typically based on the property’s value, and it must be paid in full when the purchase is finalised.

How much you’ll pay depends on two key factors:

• The country (and sometimes even the region) you’re buying in
• Whether you’re buying a newly built property or a resale

Across popular destinations such as Spain, France, and Portugal, property transfer taxes and related fees typically range between 6% and 10%* of the property’s price. In some cases, new-build homes are taxed differently, often through a mix of VAT and stamp duty, which can slightly increase or decrease the final amount depending on the region.

On top of these taxes, you may also incur extra fees for land registration or legal administration, which can add several hundred to a few thousand euros to the overall cost.

While it’s always smart to do your own research, connecting with a local notary, solicitor, or estate agent can help you navigate these costs. They’ll be able to provide you with a clearer idea of what to expect based on your specific property and location and help ensure there are no surprises at the final stage of your purchase.

*Tax laws are complex and region-specific. Consider consulting a tax advisor to help manage income and assets abroad and in the UK.

2. Legal and notary fees

Hiring a local solicitor or legal advisor isn’t just a nice-to-have. In many countries, it’s essential for a smooth and secure purchase. A legal expert can help you understand unfamiliar legal systems, avoid hidden liabilities, and make sure your property purchase complies fully with local regulations.

In countries like France, a notary (notaire) is legally required to oversee the sale. They act as a neutral third party, managing legal verification, overseeing the contract, and handling tax collection on behalf of the government.

Legal fees typically range from 1% to 2% of the property price*, but this can vary depending on the location and complexity of the transaction. For example, if you’re buying jointly, using power of attorney, or navigating inheritance or ownership structures.

• In France, notary fees are combined with other administrative costs, such as land registration, resulting in total legal and administrative fees of around 7-8% of the purchase price.*
• In Spain and Portugal, hiring a lawyer isn’t legally required but is strongly recommended, especially to carry out due diligence on the title, debts, and building permits.

Even when legal help is optional, hiring a reputable local lawyer gives you peace of mind and may help you avoid costly mistakes.

*Legal fees are complex and can vary based on location and the specifics of your transaction. Consider consulting a qualified legal advisor to get an accurate estimate tailored to your situation and ensure compliance with local property laws.

3. Currency exchange fluctuations

When you’re buying property abroad, paying in a different currency adds an extra layer of complexity and potentially additional costs. Even small movements in the exchange rate, just a few decimal points, can translate into thousands of pounds gained or lost on your final bill.

Unlike buying property at home, overseas purchases expose you to foreign exchange (FX) risk. If you use a bank to make your transfer, you’ll often face less competitive rates and added fees, meaning your money doesn’t go as far.

That’s why many international buyers choose to work with a currency specialist. These providers monitor the markets for you and offer guidance on the best time to transfer your funds. They can also help you lock in a favourable exchange rate in advance using tools like forward contracts, helping you stay in control of your costs even if exchange rates shift.

4. Survey, valuation and inspection costs

Unlike in the UK, property surveys aren’t always standard when buying overseas. But skipping this step can be risky, especially if you’re purchasing an older home, a rural property, or one that hasn’t been recently renovated.

Even if not legally required, setting aside a budget for inspections is a wise move. Consider allocating funds for:

• A structural survey or building inspection is required to identify any underlying issues.
• A property valuation, particularly if you’re applying for a mortgage.
• Pest or environmental checks, especially for homes in coastal or countryside areas.
• Specialist inspections for damp, outdated wiring, plumbing, or drainage.

These checks aren’t just box-ticking exercises; they can uncover major problems before you commit, giving you peace of mind or leverage to renegotiate the price.

In many countries, surveyors are not arranged automatically. As the buyer, it’s usually your responsibility to appoint an independent inspector. Ask your estate agent or solicitor for local recommendations.

5. Connection and utility setup fees

Especially if your overseas property is vacant or a new build, it’s easy to underestimate the cost of setting up essential services like gas, electricity, water, and internet.

In many countries, utility setup involves more than just flicking a switch. You may need to account for:

• Connection or reconnection fees: Utility companies often charge a one-time fee to set up or reactivate services, particularly if the property has been unoccupied or is a new build. These fees can vary widely depending on the country and provider. While many fall between €50 and €300 per utility*, some services, especially in parts of Spain or rural areas, may exceed this range.
• Utility deposits: If you don’t have a local credit history, some providers may require an upfront deposit, typically one to two months’ worth of estimated bills, which is held as security and returned after a period of consistent payments.
• Meter installation or upgrade costs: In older homes or rural areas, the meters may need upgrading, or services may not be connected to a mains supply. In some regions of Spain and Portugal, older homes still rely on tanks or septic systems, which may require additional setup or replacement costs.
• Broadband and internet: In rural areas, high-speed internet may not be readily available. You may need to pay for satellite internet or install signal boosters, both of which can come at a premium.

It can be a good idea to ask your estate agent or solicitor to help you source quotes from local providers and clarify whether these fees are negotiable or standard. In some cases, previous owners may have disconnected services to avoid paying standing charges, which could add further delays and costs to your move-in process.

*These figures are approximations based on expat reports. Actual costs will depend on your specific location and lifestyle.

6. Annual taxes and ongoing costs

Even after the purchase is complete, owning a property abroad comes with ongoing costs, and it’s essential to factor these into your long-term budget.

You’ll need to account for local property taxes, which vary by region and are usually charged annually. If you’re buying in a development or apartment block, community or maintenance fees may also apply.

Home and contents insurance is another key consideration, especially if you won’t be living in the property year-round. If you’re planning to rent it out, there may be letting or management fees to cover ongoing maintenance and support.

And, of course, regular utility bills, such as electricity, water, gas, and internet, all add to the annual cost of ownership, especially if the property has been unoccupied and requires reconnection.

Once you have a feel for the annual running costs in your chosen location, build in a small buffer to help manage currency fluctuations and unexpected maintenance expenses.

Ready to take the next step in your overseas property journey?

Buying a home abroad is an exciting move, but it’s the financial preparation that can make the difference between a stressful process and a smooth one. By planning for the hidden costs beyond the listing price, you’ll be in a much stronger position to protect your investment and avoid last-minute surprises.

Looking for more guidance? Browse our free Property Buying Guides for practical tips tailored to popular destinations, or download our Property Buying Toolkit, which includes a budgeting planner to help you stay in control of every stage of the purchase.

Written by Lumon for Rightmove.