The asking price is only the start. Purchase, holding, rental and exit costs — and how to model them before you buy.
The sticker price is only the start. Smart buyers model the total cost of ownership — purchase, holding and exit — before deciding. This guide breaks down the real numbers.
Beyond the purchase price
Two properties at the same price can have very different real costs once taxes, fees and annual charges are included. Budget the full picture, not just the headline.
Purchase costs
- Transfer tax or VAT, depending on resale vs new build.
- Notary, registration and legal fees.
- Agency commission where applicable.
Across Europe this often adds roughly 7–13%; in some markets less.
Annual holding costs
- Property tax (where it exists) and municipal charges.
- Building/condominium fees and maintenance reserves.
- Insurance, utilities and management if you let.
Letting and tax
Rental income may be taxable in the country and possibly at home; factor management fees and vacancy. Net yield, not gross, is what you keep.
Exit costs
Capital-gains tax, agency fees and any early-repayment charges on a mortgage. A realistic hold period changes the maths.
A simple model
- Add purchase costs to the price for your true entry.
- Subtract annual costs and tax from rent for net yield.
- Estimate exit costs against a realistic sale price.
FAQ
Is gross yield enough to decide? No — always work in net terms. Do costs vary a lot by country? Yes, materially. Can you give me a per-property estimate? Yes, with our cost calculator and a quote per object.
How we help
We provide a full cost estimate per property and a calculator so you compare like for like. Informational only — not tax or financial advice; figures are indicative.