Buying a house abroad is a romantic dream, but the reality is a complex cross-border legal transaction that can put a lot of people off from fulfilling their dream. In 2026, with shifting global tax laws and volatile exchange rates, “doing your homework” is no longer optional; it’s the difference between a dream home and a financial nightmare.
Here is the essential guide to what you need to know before signing a contract on foreign soil.
The “Hidden” 15%
Most first-time international buyers focus on the sticker price, which is basically what you see in black and white on the listing. Underneath is a hidden iceberg of costs that you didn’t know was going to appear. Like with any huge financial commitment, you should budget in an additional 10% to 15% of the purchase price just to cover the cost of fees.
Depending on where you are buying, the fees will be different, but could include stamp duty, which varies depending on where you are buying, but can range from 1% to 10% and other fees such as translation cost and estate agent cost, which can, in some cases, equate to more than 15% of the property value altogether.
These ‘hidden costs’ are just common parts of home purchasing that people forget about when getting excited to buy a home abroad.
Currency Violation
Between the day your offer is accepted and the day you complete the sale, which can be a couple of months, the exchange will have likely moved. The risk is it’s not in your favour, so it could equate to an additional 3% of your own money being added to cover the exchange rate. This is the most frustrating part as you have committed to a price months ago, but unfortunately, time has worked against you, and now you owe alot more.
Overall, it can be the opposite, where it’s moved more in your favour, so you don’t actually have to give as much money to equate to the cost of your new holiday home, which is in reality what we all wish for in this case.
Mortgages Work Differently
If you are not outright buying, you will need a mortgage, and this can be entirely different for expats. The worst thing you can do is assume your local bank will lend you money for a house in another country.
While residents might get 80% – 90% financing, non-resident expats often are capped at 60% to 70%, which means you will need a much larger deposit ready. It’s important to ensure you are in a very comfortable financial position before doing this.
Lenders often “haircut” your foreign income, which only counting 80% to cover the costs, to protect themselves against currency fluctuations, which may lower the amount you can borrow.
Legal Quirks
This is the part most people overlook. Many civil law countries (like France and Spain) have “Forced Heirship” laws. In these countries, you cannot simply leave your house to whoever you want in your will. A portion must go to your children or certain relatives by law. You must comply with your visa laws, especially if you still have your British citizenship.
Ask your immigration lawyer and other financial lawyer about “tontine” clauses or international succession treaties that might allow you to opt for the inheritance laws of your home country instead.