The True Cost Of Foreign Property Ownership: Taxes, Fees And Maintenance

Transaction costs arrive first. Depending on the country, these may cover a property transfer tax, notary fees, registration fees, lawyer's fees and agency commission. As a rough planning figure, budget a noticeable share above the purchase price, and confirm the exact rates locally.



Yearly taxes on the property follow. The rates vary from place to place, and some countries levy higher rates to non-residents. Where the paphos property for rent sits empty most of the time, vacancy taxes can apply.



Community fees are often overlooked. An apartment in a development with a swimming pool, an elevator cheap apartments in bodrum and round-the-clock security carries recurring costs that run on even when the flat is empty. Request recent accounts from the management company prior to purchase, and look for scheduled repairs.



Remote ownership adds a category of its own. A local manager must be available villas for sale in larnaca with park view maintenance visits, receive letters and bills, and organise repairs. A management company usually takes a monthly fee, and doing without it usually proves a false economy.



Insurance, running costs and the cost of selling finish the picture. Capital gains tax often applies when a non-resident sells, occasionally at a higher rate. A useful exercise involves building a five-year running-cost estimate before you commit — the result generally lands above the initial estimate.