How to Buy Property Abroad: Steps, Fees, Taxes (2025 Guide)

Snapshot

This guide gives you a simple, country-neutral path to buy a home abroad. You will see the key steps, documents, payment routes, timing, and what the real costs look like in practice. The language is plain so it is easy to translate into other languages.

Step-by-step: from search to keys

1. Define your goal and budget. Primary home, holiday use, or investment? Decide an all-in budget (price + taxes + fees + travel + furniture). Keep a 5–10% buffer for surprises.
2. Shortlist locations. Compare residency rules, ownership types (freehold/leasehold/condo), climate, schools, and rental limits. Check basic property rights and registration quality.
3. Get your buyer documents ready. Passport, proof of address (≤90 days), Source of Funds (salary, savings, asset sale), and a simple file with clean PDFs (no screenshots). If needed, prepare sworn translations or an apostille.
4. Plan a viewing trip. Book 3–5 days for target areas. Keep your calendar flexible. Focus on 6–10 properties that match your plan. If visa or transit rules apply, plan them early.
5. Make an offer and sign a reservation. The reservation or purchase agreement (SPA) sets price, dates, and conditions. Keep wording short and clear. If a deposit is required, consider holding it in escrow or a client (segregated) account.
6. Run due diligence. Title, liens, utilities, building permits, HOA status. Ask for a recent registry extract and a clear list of what is included in the sale.
7. Choose the payment route. Escrow for staged or developer deals; client (segregated) account or notarised completion for simple private sales. Align bank cut-offs and references to avoid holds.
8. Completion and handover. Sign in front of a notary or registrar (where applicable). Verify that the holder releases funds only after the release proof is checked (e.g., registrar issues title). Collect keys and utility readings.
9. After completion. Register utilities, set up insurance, pay any post-completion tax or registration dues, and store your documents in one digital folder.

Documents checklist (simple pack)

• Identity: passport; sometimes a second ID (driver’s licence or national ID).
• Address: utility bill or bank/credit card statement (issued within 90 days).
• Source of Funds: bank statements (90–180 days), payslips, sale contract for an asset, dividends/portfolio report.
• Deal papers: offer/reservation, SPA draft, plan, inventory of what is included, seller’s details.
• Extras (if needed): Power of Attorney (for remote signing), sworn translations, apostille/legalisation.

Costs you should plan for

Numbers vary by country and even by city. Use this table as a practical map of what to expect and where ranges tend to sit.

Payment routes (choose the right one)

Escrow: funds sit with a neutral holder and are released only when a simple, written condition is proven (for example: registrar issues title). Best for staged/developer deals or when you want maximum control.

Client (segregated) account: funds are held by a licensed professional under a short mandate (who signs, what proof is checked, and fallback steps). Often faster for a simple private sale.

Notarised completion: payment is confirmed live at the signing, then the seller receives funds once the registrar/notary confirms the conditions are met.

Whatever you choose, align bank cut-offs, correspondent hops, and references (MT103) so the transfer arrives and clears on time.

Taxes: at purchase, during ownership, and at sale

• At purchase: transfer tax or VAT/GST, plus notary/registration. New-builds may have VAT instead of transfer tax.
• During ownership: annual property tax, HOA fees, rental income tax if you rent out, and insurance.
• At sale: capital gains tax in the country of the property (and possibly in your home country). Keep all invoices and records to show your cost basis.

This guide is informational. For tax/legal decisions in a specific country, use local professionals.

Timing (example)

• Week 1–2: offer and reservation, due diligence starts.
• Week 3–6: complete searches, set the payment route, book notary/registrar.
• Week 6–10: completion window — align cut-offs and documents; handover and utility readings.

Common mistakes (and simple fixes)

Sending a large wire before the contract is clear. Fix: use a reservation/SPA with a simple, written condition for release.

Unplanned FX conversion. Fix: compare total cost (rate + fees) for “convert before” vs “at destination” — pick the cheaper path.

Gaps in Source of Funds. Fix: show origin → your account → payment in one chain with clean PDFs.

Booking completion on a bank holiday. Fix: confirm cut-offs and public holidays for both banks.

Poor file names and mixed languages. Fix: export clear PDFs, use short English names, and add sworn translations where required.

FAQ

Do I need a lawyer to buy abroad? In many countries buyers use a notary and a separate legal advisor. It is wise to have an independent review of title and permits.

How much cash should I keep for fees and taxes? A practical buffer is 8–12% on top of the price if VAT/transfer tax is significant; less in low-tax markets.

Can I buy remotely? Yes, many buyers use a Power of Attorney with notarisation and, where required, an apostille/legalisation.

Which payment route is safest? For staged or developer deals, escrow is usually strongest. For a simple private sale, a client (segregated) account with a clear mandate can be faster.

What documents do banks check? Identity, address (≤90 days), and Source of Funds that shows where the money comes from and how it reaches your account.

Expert comment

“Keep your release rule to one short sentence and prepare your SoF early — that is where most buyers save days.”
— Sofia, Residential Lead