It may be your dream to buy a villa in the hills of Tuscany or a condo in downtown Manhattan, but it likely cost you a lot more than the price you have agreed with the seller. Of course, it does depend on where in the world your dream home is situated as to how much money it will cost you, taxes differ from country to country as does the cost of the property and the fees involved in buying and selling.
As with buying in your home country, you need to factor in the hidden costs of buying property abroad so that you know what the total cost will be, and don’t find yourself short when it is time to complete your purchase.
Local Accountant Fees
Hiring a local accountant will be invaluable when you are buying a property abroad. They can advise you about local taxes relating to your purchase, and any ongoing fees you will incur, and they can manage your overseas tax payments for you. Falling foul of the local tax laws could result in a criminal conviction, so it is best not to manage this yourself unless you are very confident in what you are doing.
Property laws can differ vastly depending on where in the world you are buying so it is best to use a local lawyer to manage the transaction for you. Some countries will require you to take insurance before you complete your purchase or update your will. You will also need to understand the law about what you can and can’t do with your property once you have purchased it. For example, you may not be legally allowed to carry out the renovation work you had planned. It is best to check the legalities before you purchase to avoid any costly mistakes later.
Your ability to speak the language will determine whether to use a translator or not. If you are buying in an English-speaking country or are fluent in the native language of the country you are buying in, then you can skip these fees. However, if your language skills don’t stretch as far as legal terminology or financial matters then you should use a translator so that you are aware of what you are agreeing to or signing.
You will need to transfer money to the country you are purchasing your property at various stages to pay bills associated with your purchase. Transferring money used to be a bit of a hassle and could be quite time-consuming, meaning that people could miss out on a favourable exchange rate due to the time it took to send money. Luckily that problem has been almost eradicated with apps such as Ria International Money Transfer, making the process a lot quicker and simpler. You will still need to factor in the cost of transferring your money abroad but the speed at which you can do this means that you are more able to take advantage of good exchange rates as they occur.
There are hidden costs when buying property abroad, so you will need to factor these into your budget.