Upfront transaction costs
Notary 1%, BPHTB transfer tax 5% (for leasehold conversions), agent 5%.
Ongoing taxes
Rental income for non-residents is taxed at 20% withholding; tourist villas can also be subject to local hotel/restaurant (PB1) tax of 10%.
Holding costs
- Community / HOA fees
- Utilities and maintenance reserves
- Property management (8–20% of rental income)
- Insurance
Build your true-cost model
The right way to evaluate a deal is net yield after all costs, not gross yield. Compare any two properties on a like-for-like basis.
Key takeaways
- Always quote yield on a NET basis.
- Budget 8–12% on top of the price for transaction costs.
- Annual property and rental-income taxes vary widely — model them.
- Property management eats 8–20% of gross rent.
- Insurance and maintenance reserves are not optional.
Ready to test what you learned?