European Property Buying Costs Compared

The advertised price is only the beginning. Across Europe, the true cost of buying a home includes transfer taxes or VAT, notary and registry fees, legal costs and sometimes agency fees, and these vary dramatically between countries and even between regions in the same country. Two homes with identical price tags can carry very different total bills.

This guide compares how buying costs work in the markets our buyers ask about most. It is designed to help you budget and ask the right questions, not to replace current professional advice. Where we refer to rates, treat them as broad historical guides that you must confirm, because governments revise property taxes regularly. If you are ready to look at real homes, browse our current European properties.

The building blocks of purchase costs

Almost every European purchase involves some combination of the following:

• Transfer tax or stamp duty on resale homes, set nationally or regionally.
• VAT on many new-build homes bought from developers, sometimes instead of transfer tax.
• Notary fees in civil-law countries where a public notary must execute the deed.
• Land registry fees to record your ownership.
• Legal fees for your own independent lawyer.
• Agency fees, which may be paid by the seller, the buyer or both depending on the country.
• Mortgage costs, including arrangement fees, valuation and sometimes mortgage tax.
• Currency conversion if your money is in pounds or dollars.

A common rule of thumb is to budget somewhere between around 7% and 15% on top of the price, but the actual figure can fall outside that range. Always get a written cost estimate from your lawyer before committing.

Spain

In Spain, resale homes are subject to a transfer tax (Impuesto de Transmisiones Patrimoniales) set by each autonomous region, while new builds bought from a developer carry VAT plus stamp duty instead. This regional variation matters: Andalusia, home to the Costa del Sol, has in recent years applied a comparatively moderate flat transfer rate, while other regions apply higher or tiered rates. Add notary and land registry fees, legal fees and, if you take a mortgage, bank costs.

Foreign buyers will also need a foreigner identification number, usually arranged before signing. For apartments, ask for the community’s accounts and check for upcoming levies. Our Estepona beachfront penthouse is an example of a resale purchase where the regional transfer tax would apply.

Portugal

Portugal levies a property transfer tax (IMT) on a sliding scale, with different bands for permanent and secondary homes, plus stamp duty on the purchase price. New-build purchases are generally taxed the same way rather than with VAT on the price. Notary or registry costs and legal fees are additional. Annual municipal property tax (IMI) follows ownership. Buyers need a Portuguese tax number (NIF), and many use a lawyer to act under a power of attorney for registration steps.

France

France is known for relatively high resale purchase costs, commonly called notaire fees, though most of the total is actually tax collected by the notaire rather than their own fee. New builds usually include VAT in the price, with lower notarial costs on top. Agency fees are often included in the advertised price, but check whether a price is quoted with or without them.

Italy

Italy distinguishes sharply between a main residence (prima casa) and a second home, and between buying from a private seller and buying from a developer. Registration tax on resale homes bought from private sellers is usually calculated on the cadastral value rather than the price paid, which can make costs lower than buyers expect. Purchases from companies may carry VAT. Notary fees are payable by the buyer, and agency fees are usually split between buyer and seller.

Greece

Greece applies transfer tax to resale property, while VAT on new builds has been subject to suspensions in recent years, so check the current position carefully. Notary, land registry or cadastre fees and legal fees apply, and buyers need a Greek tax number. Non-EU buyers should check rules for border areas and certain islands.

Cyprus

Cyprus charges transfer fees on resale purchases through the Department of Lands and Surveys on a sliding scale, while new builds are usually subject to VAT, with reduced rates available in specific circumstances for a main residence. Stamp duty is payable on the contract. Non-EU buyers usually need Council of Ministers permission, a step your lawyer should manage. See our Paphos apartment at Elysia Blu for a current example.

Croatia, Montenegro and the Adriatic

Croatia levies a real-estate transfer tax on resale purchases, while new builds generally carry VAT instead. Non-EU buyers depend on reciprocity and approval. Montenegro, outside the EU, also applies a transfer tax on resale, with VAT on new builds, and allows foreigners to buy buildings and apartments though not agricultural land.

The United Kingdom

In England and Northern Ireland, buyers pay Stamp Duty Land Tax in bands, with higher rates for additional homes and a surcharge for non-resident buyers. Scotland and Wales operate their own systems. Conveyancing is handled by a solicitor or licensed conveyancer rather than a notary, and estate agents are usually paid by the seller. The GOV.UK guide to buying a home sets out the stages.

Countries with stricter rules

Cost is not the only barrier. Switzerland limits non-resident purchases under Lex Koller. Denmark requires most buyers without Danish residence to obtain Ministry of Justice permission, with holiday homes particularly restricted. Finland requires non-EU and non-EEA buyers to obtain a permit for real estate. Malta requires many non-EU buyers to obtain an Acquisition of Immovable Property permit outside designated areas. These steps add time and cost and can change your choice of country altogether.

The costs that come after completion

• Annual property taxes and municipal charges.
• Community or owners’ association fees for apartments and resorts.
• Insurance, utilities and maintenance, including pool and garden care.
• Management fees if you are away for long periods.
• Tax on rental income, in the country of the property and potentially at home.
• Capital gains tax when you sell, which can differ for residents and non-residents.

A villa with a large garden and pool can cost far more to run each year than an apartment of similar value. Factor these figures into your decision, not just the purchase price.

Currency: the hidden cost

For buyers with money in pounds or dollars, exchange movements between agreeing a price and paying it can add or subtract a meaningful sum. Banks’ retail exchange rates often include a margin, so compare specialist currency providers, consider forward contracts to fix a rate and plan transfers well before completion. Prices on this site are shown in pounds sterling from the source listing, with clearly labelled indicative euro and dollar conversions that are not live rates.

How to build your budget

• Start with the agreed price and add transfer tax or VAT for that country and region.
• Add notary, registry and legal fees from a written estimate.
• Add mortgage costs if borrowing, and a contingency for currency movement.
• Add furnishing, initial repairs and moving costs.
• Model annual running costs for at least five years.
• Keep a buffer of several per cent for the unexpected.

Final thoughts

European buying costs are knowable, but only with country-specific, up-to-date advice. Get a written estimate early, read the official guidance for your destination and avoid deciding on headline prices alone. The UK government’s guidance for buying property abroad is a good, impartial checklist to work through. When you have a budget, explore our live opportunities or tell us what you are looking for.

Ask for a property-specific completion statement

Country comparisons are useful for a first shortlist, but they are not a substitute for a quotation for the actual property. Ask your lawyer to prepare a written estimate that separates the price, taxes, professional fees, registry expenses and any bank charges. The estimate should state the assumptions used and identify amounts that may change before completion.

Confirm whether the quoted price includes VAT where it applies. New-build and resale homes may be taxed differently. Land, parking, storage and furniture can also have different treatment. A mixed package should be clearly described in the contract, with any allocation supported by professional advice rather than an artificial split intended to reduce tax.

Ask when each payment falls due and who receives it. Funds for tax and fees may be needed before or at completion. Keep money available for these obligations instead of committing the full budget to the purchase deposit.

Build a cash-flow calendar, not just a total

Two purchases with the same overall cost can require very different cash-flow planning. A completed resale may require most funds on one date. An off-plan purchase can involve a reservation payment, an exchange deposit and further instalments months before the home is usable.

Map these dates against the sale of your existing home, mortgage availability and currency transfers. Check bank transfer limits early. A buyer can have sufficient funds yet still struggle to meet a deadline if accounts, identity checks or international payments are not ready.

Mortgage offers may expire during construction. A future valuation can also differ from the agreed price, leaving a funding gap. Do not count an unapproved loan as available cash. Ask your broker and lawyer how delays affect your financing and contractual obligations.

Review the cost of the building as well as the apartment

An attractive apartment can come with substantial shared liabilities. Request the community's accounts, reserve balance, recent meeting minutes and planned major works. Look for spending on roofs, lifts, façades, pools, fire safety and drainage. A low annual service charge is not automatically good value if essential maintenance has been postponed.

Ask how owners approve new expenditure and whether there are unpaid community debts. Confirm which liabilities remain with the seller and which may attach to the property under local law. Your lawyer should check this before completion rather than leaving the issue to the managing agent afterwards.

For a resort home, identify optional and mandatory charges separately. Club membership, furniture packages, letting services and maintenance contracts may have different cancellation rights. Obtain written terms and calculate the cost even if you decide not to let the property.

Include sale costs in a long-term plan

Ownership costs do not end with annual bills. If you later sell, you may face agency fees, legal costs, certificates, mortgage discharge charges and tax on gains. These costs vary with your residence, ownership structure and the law at the time of sale.

Keep records of the purchase price, taxes and qualifying improvement works. Proper invoices can be important when calculating a future taxable gain. Routine maintenance and capital improvements may receive different treatment, so ask an adviser how records should be organised.

Do not assume a home will sell quickly at its asking price. A reserve for continuing bills allows you to market without relying on an immediate sale. This is particularly important for niche resort properties and homes in markets with a smaller pool of buyers.

Use advice that covers both sides of the border

Overseas ownership can create obligations in the property's country and in your country of tax residence. Different definitions of income, residence and deductible expenses can complicate apparently simple calculations. Double-tax agreements may help, but they do not remove every filing requirement.

Give advisers a complete picture of who will own the home and how it will be used. Joint ownership, company ownership, personal holidays and commercial letting can lead to different results. Resolve those questions before signing, not after the title has been registered.