Hidden Costs of Buying a New Build Abroad: A Full List

The hidden costs of buying a new build abroad are purchase taxes, notary and registration fees, legal fees, currency conversion, snagging and furnishing, and ongoing service charges, insurance and local taxes. Together they can add a significant percentage to the headline price, so get a written, country-specific estimate before you reserve.

Why headline prices mislead

A brochure price is the developer’s price for the unit. It excludes most of what you must pay to become the legal owner and to hold the property afterwards. Two buyers can pay the same headline price in different countries and spend very different totals once taxes and fees are added. This matters most for comparisons: a “cheaper” market can cost more in the end.

The process article on how to buy a new build property abroad puts a budget at step one for this reason. Below is the full list of categories to ask about.

The cost categories

Category	When you pay	Typical question to ask
Purchase tax (VAT, transfer tax or stamp duty)	At contract or deed	Which tax applies to a new unit in this country?
Notary and registry fees	At the deed	Are they fixed or a percentage of price?
Legal fees	Throughout	Flat fee or percentage; what is covered?
Developer extras	At contract or handover	Are kitchen, parking or storage included?
Currency costs	Each payment	What margin does my bank charge?
Furnishing and fit-out	At handover	Is the unit sold unfurnished?
Utility connection	At handover	Who pays connection and deposits?
Service charges and sinking fund	Ongoing	What is the estimated annual amount?
Insurance	Ongoing	Is building insurance included in service charges?
Local property and income taxes	Annually	What do non-residents pay, and when?
Management and letting fees	Ongoing, if you let	Percentage of rent?

Off Plan Properties’ UAE page mentions a 4 percent registration fee and an absence of annual property tax, while its Spain and Portugal pages do not state a full tax answer in the content we could read. This is the pattern you will see: sellers quote the favourable items and leave others blank. Treat it as a prompt to ask, not as proof that costs are low.

Key takeaway: do not accept “taxes are low here” as an answer. Ask for the exact tax, rate and who pays it, in writing, for your specific unit.

Purchase taxes: new and resale differ

In many countries, a first sale of a new home is taxed differently from a resale. One may attract value added tax and the other a transfer tax, with different rates and different reliefs. That means comparing a new build price with a resale price needs adjusting. Ask whether the price quoted includes VAT where applicable, and whether the tax is payable on each instalment or at the end.

Legal, notary and registry costs

Independent legal advice is not optional, and its cost is small compared with the exposure. Fees range from a flat sum to a percentage. Notaries and land registries charge fees set by law or by schedule in some countries. Your lawyer should list them in advance and tell you which are payable by the buyer. For what the lawyer should check, see new build purchase contract clauses.

Currency and transfer costs

If you pay in a different currency from the one you earn or hold, every instalment carries an exchange cost. Over a payment schedule lasting two years, rate moves can exceed the discount you thought you were getting. Options include paying early at a fixed rate, using a currency specialist with forward contracts, or accepting the risk. Whatever you choose, record every transfer; some countries require transfer evidence at registration, as with the foreign exchange form described for Thai condos in our Thailand guide.

Fit-out, snagging and the first year

New does not mean ready to live in. You may need to buy kitchens, wardrobes, lighting, curtains and appliances, and to pay utility connection fees and deposits. Allow for snagging repairs that the developer will not cover, and for the cost of visits to inspect progress. Budget a first-year contingency.

Ongoing costs that reduce your return

Service charges often fall between 1 and 4 percent of property value per year depending on building amenities, and the Off Plan Properties rental yield calculator page mentions service charges of 2 to 4 percent, management of 8 to 12 percent of rent, maintenance of 1 to 2 percent and insurance of 0.2 to 0.5 percent as typical ranges. Those are the page’s guidelines and are not universal, but they show how running costs can eat a headline yield. Use the calculator with your own numbers, and read our piece on rental yield for new builds abroad.

A simple worksheet

1. Write down the headline price.
2. Add purchase tax and fees as a written quote from your lawyer.
3. Add legal, notary and registry fees.
4. Add currency conversion cost based on your bank’s margin and a plausible exchange rate range.
5. Add fit-out and utility connection.
6. Add one year of service charges, insurance and local taxes.
7. Compare the total with a rival project or country, not with the headline price.

Comparing two projects

Suppose Project A is cheaper on the brochure but sits in a country with higher purchase tax and monthly service charges, while Project B is dearer but lower on tax and fees. After the worksheet, A may be the more expensive over five years. If you are comparing projects in the Off Plan Properties listings, put them in one table and fill every line from documents.

Ask for an all-in figure in writing

Before you reserve any unit, ask the developer’s sales team and your own lawyer for the same document: an itemised statement of every payment you will make from reservation to registration. Compare the two. Differences are the questions to resolve, and a developer who will not put numbers on paper is a developer to approach with caution. Also ask who pays for any “completion pack” items such as appliance packages or furniture bundles, since these are sometimes presented as discounts but increase your total.

Sources and caveats

Costs and tax rules vary by country, region and property, and they change. This article is general information, not tax or legal advice. Confirm every figure with an independent local lawyer and the relevant tax authority.

Country tax overview as a starting point

Off Plan Properties publishes a country-by-country tax guide for off-plan property, which can help you build the list of questions for your own tax adviser. Use it to know what to ask, not as the final word, since rates and reliefs change and depend on your residence.