One of the most common mistakes made by investors buying property overseas is to focus on the asking price without fully accounting for the transaction costs that sit on top of it. In some countries, the total cost of acquiring a property — taxes, legal fees, agency fees, registration, and stamp duties — can add 10 to 15 per cent or more to the purchase price. Getting these numbers wrong can turn a profitable investment into a marginal one, or make the economics of buying versus renting look very different.
This guide breaks down the typical transaction costs in the key markets where internationally mobile investors most commonly buy: the UAE, Spain, France, Portugal, Cyprus, Thailand, and the UK for non-residents.
All costs are approximate as of 2026 and change with legislative updates. Always obtain a current, personalised cost estimate from local legal professionals before exchanging.
United Arab Emirates (Dubai and Abu Dhabi)
Dubai is notable for having relatively low transaction costs compared to European property markets — one reason it remains attractive to international investors.
Transfer fee: 4 per cent of purchase price, paid to the Dubai Land Department (DLD). This is the dominant cost.
Agency fee: typically 2 per cent (buyer side), though this varies. In new-build transactions off-plan, the developer often pays the agency fee.
Registration trustee fees: approximately AED 4,000 (around £850) for properties above AED 500,000.
Mortgage registration (if financing): 0.25 per cent of the mortgage value plus AED 290.
Legal fees: relatively modest; typically AED 3,000 to AED 10,000 for standard transactions.
Total approximate buyer cost: 5 to 7 per cent of purchase price (including agency).
There is no annual property tax in Dubai. The ongoing cost of ownership is principally the service charge (maintenance fee for the development), which varies widely.
Spain
Spain has higher transaction costs, particularly for resale (second-hand) properties.
Transfer Tax (ITP) for resale property: varies by autonomous community. In Madrid it is 6 per cent; in Catalonia it is 10 per cent; in Valencia and Andalusia it is 10 per cent. This is levied on the buyer.
VAT + Stamp Duty (AJD) for new-build: VAT at 10 per cent plus Stamp Duty (Impuesto de Actos Jurídicos Documentados, AJD) of approximately 1 to 1.5 per cent — total approximately 11 to 11.5 per cent.
Notary fees: approximately 0.5 to 1 per cent.
Land Registry fees: approximately 0.3 to 0.6 per cent.
Legal fees: typically 1 per cent (highly advisable to instruct a local lawyer).
Agency fee: in Spain, it is common for the seller to pay the agency fee, though practices vary.
NIE number: required for all property purchases; obtainable in advance with legal assistance.
Total approximate buyer cost: 10 to 13 per cent for resale, 12 to 14 per cent for new-build.
Ongoing costs include IBI (municipal property tax, levied annually), rubbish collection tax, community fees, and income tax on deemed rental income for non-resident owners even if the property is not let.
France
France has high transaction costs, often referred to collectively as "frais de notaire" — though they include government duties as well as notarial fees.
Transfer taxes and notarial fees (frais de notaire): approximately 7 to 8 per cent for older properties (more than five years old). This covers the Droits de Mutation (transfer tax), departmental and municipal levies, and the notary's professional fee.
New-build properties: lower "frais de notaire" of approximately 2 to 3 per cent, but subject to VAT at 20 per cent on the purchase price.
Agency fee: typically 3 to 5 per cent, paid by seller in most cases (though buyer-pays arrangements exist).
Legal fees: often included within the notarial function; however, for complex cross-border transactions, additional legal advice is advisable.
Total approximate buyer cost: 7 to 10 per cent for older property, 2 to 4 per cent for new-build (but remember the VAT cost is baked into the new-build price).
Ongoing costs include Taxe Foncière (property tax on landowners) and Taxe d'Habitation where applicable, plus income tax on French rental income. French wealth tax (IFI, Impôt sur la Fortune Immobilière) applies to property assets above €1.3 million held in France.
Portugal
Portugal has attracted significant international interest, though the Golden Visa programme for property investment was discontinued in 2023 for most property types.
IMT (Imposto Municipal sobre as Transmissões): a transfer tax that varies by property value and type. For residential properties above €1 million, the rate is 7.5 per cent. Lower rates apply below this threshold on a progressive scale; rural properties are taxed at 5 per cent.
Stamp Duty (Imposto de Selo): 0.8 per cent of purchase price.
Notarial and registration fees: approximately €500 to €1,500.
Legal fees: typically 1 to 1.5 per cent (independent legal advice is strongly recommended).
Agency fee: typically 3 to 5 per cent (usually paid by seller, but this is negotiable).
Total approximate buyer cost: 7 to 10 per cent.
Ongoing costs include IMI (annual property tax based on the tax value) and AIMI (additional annual tax on higher-value properties). Rental income is subject to Portuguese income tax or non-habitual resident rates if applicable.
Cyprus
Cyprus has historically been one of the more straightforward property markets for UK buyers.
Transfer Fee (Department of Lands and Surveys): varies by property value on a scale of 3 per cent (up to €85,000), 5 per cent (€85,001 to €170,000), and 8 per cent above €170,000 on the seller's declared value. Temporary reductions and exemptions have been available on new builds — verify current rules.
VAT: 19 per cent applies to new-build property purchased from a developer. A reduced rate of 5 per cent may apply on a primary residence (subject to conditions and square footage limits).
Stamp Duty: 0.15 per cent (up to €170,860), 0.20 per cent above.
Legal fees: approximately 1 per cent.
Land Registry: nominal.
Total approximate buyer cost (resale): 8 to 12 per cent. New-build varies depending on VAT treatment.
Cyprus applies an annual Immovable Property Tax (IPT) based on the 1980 cadastral value — typically modest in absolute terms.
Thailand
Thailand presents unique considerations due to restrictions on foreign freehold ownership of land.
Foreigners can generally own: condominium units (up to 49 per cent of a development's units in foreign hands), buildings (but not the land they sit on), and via certain lease structures (typically 30-year leases).
Transfer fee: 2 per cent of the official assessed value (not necessarily the market price).
Specific Business Tax (SBT): 3.3 per cent if the property is sold within five years of purchase. Applies to new-build or recently purchased property.
Stamp Duty: 0.5 per cent (applicable if SBT is not payable).
Withholding Tax: a seller obligation, but can affect negotiation.
Legal fees: approximately 0.5 to 1 per cent (essential to instruct a lawyer familiar with foreign ownership structures).
Agency fees: typically 3 to 5 per cent (paid by seller in most cases).
Total approximate buyer cost: 4 to 7 per cent depending on property type and transaction structure.
Thailand's Land and Building Tax (in force since 2020) applies to all land and building owners. For non-owner-occupied residential properties, rates range from 0.02% to 0.1% of the official assessed value annually — low in absolute terms. Owner-occupied primary residences benefit from generous exemption thresholds and may pay little or nothing. Ongoing holding costs are considerably lower than in most European markets.
United Kingdom (for Non-Resident Buyers)
Stamp Duty Land Tax (SDLT): rates for residential property range from 0 per cent (up to £125,000) to 12 per cent (above £1.5 million) on a graduated basis. A 5 per cent surcharge applies to additional dwellings (buy-to-let, second homes) — increased from 3% on 31 October 2024. A further 2 per cent surcharge applies to non-UK residents. Combined, a non-resident buying a £2 million property as an investment could face SDLT of 17 per cent on the portion above £1.5 million.
Legal fees: typically £2,000 to £5,000 for a straightforward transaction.
Survey fees: £1,000 to £3,000.
Agency fees: in the UK, paid by seller (not buyer).
Total approximate buyer cost: 5 to 17 per cent depending on property value and buyer status.
Annual ongoing costs include Council Tax (or Business Rates for commercial property), income tax on rental income under the Non-Resident Landlord Scheme, and Capital Gains Tax on disposal.
Professional Advice Is Essential
These figures are illustrative and change frequently. Tax rules, applicable rates, and local practices vary not just by country but by region and property type. Always instruct a qualified local lawyer and obtain a detailed cost estimate before exchanging on any overseas purchase. Investments in property can fall as well as rise in value.
How Global Investments Can Help
Global Investments advises internationally mobile investors on property acquisition across multiple markets. We can introduce you to qualified local lawyers and advisers, help you assess the total cost of acquisition, and ensure that your property investment sits within a coherent overall wealth and tax plan.
Contact us before you commit to an overseas purchase — the right advice at the outset can save significant cost and complexity.
This article is for general information only and does not constitute financial, legal or tax advice. Rules, prices and regulations change; verify current requirements with a qualified adviser before acting.