Upfront transaction costs
Transfer fees 1.5–4% (50% discount on new builds with VAT), VAT 19% (reduced 5% for primary residence under conditions), stamp duty 0.15–0.20%.
Ongoing taxes
No inheritance tax; rental income is taxed via personal income tax with a 20% exemption on gross.
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?