Full Cost Stack for Buying and Selling Property: UK and Overseas

One of the most common mistakes property investors make is underestimating transaction costs. In the UK, a typical purchase involves stamp duty, legal fees, surveys, searches, and mortgage arrangement fees — together these can represent 4–8% of the purchase price on top of the deposit. In some overseas markets, transaction costs are even higher, sometimes reaching 15–20% of the property value.

Understanding the full cost stack — both on the way in and on the way out — is essential for accurate investment appraisal.

UK: Buying Costs

Stamp Duty Land Tax (SDLT)

SDLT is the most significant transaction cost for most UK buyers. The rates for residential property as of 2026 are:

Standard rates (owner-occupier, not first-time buyer):

• Up to £125,000: 0%
• £125,001–£250,000: 2%
• £250,001–£925,000: 5%
• £925,001–£1.5 million: 10%
• Above £1.5 million: 12%

Note: The temporary £250,000 nil-rate threshold introduced during the SDLT holiday ended on 31 March 2025. The standard threshold reverted to £125,000 from 1 April 2025.

First-time buyer relief: 0% up to £300,000; 5% on £300,001–£500,000; no relief above £500,000.

Additional dwelling surcharge: a 5% surcharge applies to all purchases of additional residential properties (second homes, buy-to-let), since 31 October 2024. This applies on top of the standard rates, and the 5% applies from the first pound.

Non-UK residents surcharge: a further 2% surcharge applies to purchases by non-UK residents. For a non-resident buying an additional property, both surcharges stack, meaning the total surcharge above standard rates can be 7%. This applies even to expats with UK properties.

Example — investor buying £500,000 buy-to-let (UK resident, additional property):

• Standard SDLT: £15,000 (0% on first £125k; 2% on £125k–£250k; 5% on £250k–£500k)
• Additional dwelling surcharge (5% on full purchase price): £25,000
• Total (UK resident): £40,000 (8% of purchase price)
• Non-resident surcharge (if also non-UK resident, additional 2%): £10,000
• Total (non-UK resident): £50,000 (10% of purchase price)

SDLT on commercial property: different rates apply. Up to £150,000 is 0%; £150,001–£250,000 is 2%; above £250,000 is 5%. No additional dwelling surcharge.

Conveyancing and Legal Fees

Conveyancing fees for a standard UK residential purchase range from approximately £1,000–£2,500 plus VAT, depending on property value, complexity, and the solicitor or licensed conveyancer used.

Additional disbursements typically include:

• Land Registry searches: £40–£80
• Local authority searches: £100–£250
• Drainage and water searches: £50–£100
• Environmental search: £50–£100
• Land Registry registration fee: scaled by property value (e.g., £270 for a £500,000 property)
• Telegraphic transfer fee: £20–£50

Total legal fees and disbursements: typically £1,500–£3,500 on a straightforward residential purchase.

Survey Costs

A valuation (required by the mortgage lender) is typically arranged and paid for by the lender, with the cost passed to the borrower — usually £250–£600.

A Homebuyer Survey (RICS Level 2) is recommended for most properties: typically £400–£800.

A full structural survey (RICS Level 3) is recommended for older, unusual, or high-value properties: typically £700–£1,500 or more depending on size.

Mortgage Arrangement and Broker Fees

Mortgage arrangement fees typically run £500–£1,500, though some products have no arrangement fee (at the cost of a slightly higher rate). Mortgage broker fees vary — independent brokers typically charge £300–£1,000 or a percentage of the loan amount.

Summary: UK Buying Costs

Cost	Typical Range
SDLT (standard, £500k)	£15,000–£50,000
Legal fees and disbursements	£1,500–£3,500
Survey	£400–£1,500
Mortgage fees and broker	£500–£2,500
Total	£18,000–£58,000 (4–12%)

UK: Selling Costs

Estate Agent Fees

Estate agent fees in the UK are typically:

• Traditional high street agents: 0.75–1.5% + VAT of the sale price (sole agency); 1.5–3% for multi-agency
• Online/hybrid agents: fixed fees of £1,000–£3,000, though some charge a percentage of sale price
• Auctions: 1.5–2.5% seller's premium plus auction room/marketing costs

On a £500,000 property with a traditional agent at 1.2% plus VAT: £7,200.

Conveyancing (Sale)

Legal fees for a sale are slightly lower than for a purchase: typically £750–£1,500 plus VAT.

CGT on Sale

Capital gains tax at 24% (for higher/additional rate taxpayers) on the gain above the cost base. The annual CGT exemption is £3,000. For principal private residences, Private Residence Relief (PRR) eliminates or reduces the charge. For investment properties, PRR is not available.

Spain: Buying Costs

Spain is one of the most popular overseas markets for UK investors and has relatively high transaction costs.

Transfer Tax (ITP): varies by region, typically 6–10% of purchase price for resale properties. Andalusia and Valencia are at 7%; other regions vary.

VAT (IVA) on new builds: 10% IVA plus 1.5% Stamp Duty (AJD) on new build purchases (from developer).

Notary fees: €600–€2,000 depending on property value.

Land Registry fees: €400–€1,000.

Legal fees: 0.5–1% is common, or €1,500–€3,000 fixed for standard transactions.

Total buying costs in Spain: typically 10–14% of purchase price (resale); 12–15% (new build). Non-EU buyers (including post-Brexit UK nationals) face no additional surcharges in most regions, though Malaga and some Balearic island areas have introduced restrictions on non-EU buyers.

France: Buying Costs

Frais de notaire: in France, the buyer pays notary fees that include conveyancing, registration taxes, and the notary's own fee — together around 7–8% of purchase price for resale properties (lower for new builds at around 2–3%).

Agent commission: typically included in the listed price and paid by the seller, at 3–6%.

Total buying costs in France: approximately 7–10% (resale).

UAE: Buying Costs

Dubai and Abu Dhabi have more streamlined transaction costs than most European markets.

Dubai Land Department (DLD) registration fee: 4% of purchase price, payable by buyer.

Agency commission: typically 2% paid by buyer.

Conveyancing/legal: approximately AED 5,000–10,000 (£1,000–£2,000).

Mortgage registration (if applicable): 0.25% of loan amount.

Total buying costs in UAE: typically 6–7%.

Cyprus: Buying Costs

Transfer Fees: paid to the Land Registry, scaled by value — 3% on first €85,000; 5% on €85,000–€170,000; 8% above €170,000. Reduced rates apply for new builds (50% discount).

Stamp Duty: 0.15% on consideration up to €170,000; 0.2% above.

Legal fees: typically 0.5–1% or fixed at approximately €1,000–€3,000.

VAT on new builds: 19% (5% reduced rate for primary residence — application required in advance).

Total buying costs in Cyprus: approximately 6–10%.

Thailand: Buying Costs

Thailand applies transaction taxes split between buyer and seller by convention (though the actual legal incidence may be different):

Transfer fee: 2% of appraised value (the appraised value is often lower than market value).

Specific business tax: 3.3% (replaces withholding tax for properties held less than five years).

Withholding tax: progressive, based on appraised value divided by ownership period.

Stamp duty: 0.5% (alternative to specific business tax for properties held 5+ years).

Total costs: approximately 6–10%, split by negotiation between buyer and seller.

Note for foreign investors: foreigners cannot own freehold land in Thailand. Condominiums may be owned freehold up to 49% of a building's units. Other structures (long leasehold, Thai company) carry additional legal costs and complexities.

The Selling Cost Often Forgotten: CGT

Across all jurisdictions, the gain on disposal is potentially subject to capital gains tax or local equivalent. In many countries — Spain, France, Greece — non-residents face CGT at fixed rates (19–28%). Withholding mechanisms mean the tax is often deducted at source by the notary on completion.

Always model the exit tax alongside the entry costs when appraising any property investment.

How Global Investments Can Help

Global Investments advises clients on the total cost of ownership across multiple jurisdictions, including the full transaction cost stack, ongoing taxation, and exit costs. For investors building an international property portfolio, understanding these costs — and ensuring they are funded without disrupting overall portfolio liquidity — is a core component of the financial plan we build.

Transaction costs and tax rates change. This article reflects our understanding as of mid-2026. Always obtain specific legal and tax advice in each jurisdiction before proceeding with a property purchase. Values can fall as well as rise.