What Costs Are Added on Top of the Price When Buying Abroad?
Written by: Marcus M. Araz, MBA, PhD · Updated:
Between 4 and 10 percent of the price, depending on the country. The one item that makes the difference is the purchase tax: a flat 4 percent in Dubai, a flat 3.09 percent in Greece, and in the UK a banded stamp duty that changes with the price and with the buyer's profile. The remaining items are close to each other in all three countries.
The three countries side by side
| England | Dubai | Greece | |
|---|---|---|---|
| Total added on top of the price | Damga pulu vergisi artı yaklaşık £2.500 ile £4.000 | About 4.3 percent | About 6.73 percent plus 684 euro |
| Largest item | stamp duty | DLD transfer fee, 4 percent of the price | Transfer tax, 3.09 percent of the price |
| Solicitor | £1.295 artı KDV | Not required, the developer and the DLD handle it | 1.24 percent of the price |
| Notary | None | None | 1.70 percent of the price |
| Is the purchase tax rate fixed | No, it changes with the price and the buyer's profile | Yes, 4 percent | Yes, 3.09 percent |
| Annual property tax | Belediye vergisi var | None | ENFIA var |
England
Costs other than stamp duty come to roughly £2,500 to £4,000 : the solicitor's fee, title and local authority searches, the land registry fee, a survey and transfer costs. Stamp duty comes on top of that and can run into tens of thousands of pounds on its own, because it is worked out in bands and carries a 2 percent surcharge for a buyer who is not resident and a further 5 percent on a second home.
So what sets the total cost in the UK is not the price but who the buyer is. The item by item breakdown is on our Total cost of buying a home in the UK page.
Dubai
Buying off-plan directly from the developer, the total cost is roughly 4.3 percent of the price and nearly all of it is the one off 4 percent DLD transfer fee. On top of it come the Oqood registration fee, the title deed issuing fee and an agency commission that usually does not arise on a direct purchase. On a resale, commission and the NOC fee can push the figure to around 6.5 percent.
What sets Dubai apart is not the cost but the taxes that do not exist: no annual property tax, no VAT on the sale of a home, no stamp duty and, for an individual buyer, no tax on rental income. The detail is on our Is there property tax in Dubai and Cost of buying a home in Dubai pages.
Greece
The total cost is roughly 6.73 percent of the price plus 684 euro in fixed items. The largest item is the 3.09 percent transfer tax; on top of it come the notary at 1.70 percent, the lawyer at 1.24 percent and land registration at 0.70 percent. On a 250,000 euro apartment that means roughly 17,500 euro of extra budget.
What is different about Greece is that a lawyer and a notary are compulsory. The item by item breakdown is on our Cost of buying a home in Greece page.
The items common to all three
Whatever the country, three items have to go into the budget. Exchange and transfer cost: the bank's exchange margin when converting from Turkish lira, the item most buyers never calculate. Annual service charge: present in all three countries, and it rises as facilities such as a pool, a gym or a concierge are added. Management commission: if you are going to let the property, part of the gross rent goes here.
Frequently asked questions
Which country has the lowest purchase cost? As a percentage, Dubai: about 4.3 percent buying directly from the developer. In the UK the answer varies a lot with the buyer's profile.
Is there stamp duty in Dubai and Greece? No. Its counterpart is the 4 percent DLD transfer fee in Dubai and the 3.09 percent transfer tax in Greece.
Do I have to instruct a lawyer? In the UK and Greece, in practice yes. In Dubai it is not required; the developer and the Land Department handle the process.
Masraflar fiyata dahil edilebilir mi? No, all of it comes on top of the price and most of it is asked for in cash at the title stage.
What is there on the annual cost side? The service charge, in all three countries. On the tax side there is council tax in the UK and ENFIA in Greece; in Dubai there is no annual property tax.
How do I work out my own scenario? We have a separate calculator for each of the three countries; enter the price and you see the total cash needed.
Sources
The figures come from our own cost pages: England, Dubai and Greece. The UK items rest on a real solicitor's quote and on land registry tariffs, the Dubai items on the Dubai Land Department tariff, and the Greek items on notary and land registry tariffs. Rates can change; before any purchase decision we confirm the current position together.
Legal notice
capital.works® (YATIRIM UK LIMITED) is a real estate advisory company; it does not provide tax or legal advice. This page is for general information. In each country the title and tax process is carried out by a lawyer or an accountant qualified there.
The next step
Write to us with your budget and the country you have in mind, and we will set the three scenarios side by side: Contact us. To see your own figure, use our England, Dubai and Greece calculators.