Module 3: Taxes, Fees & Holding Costs

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.

• 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.