Buying a Holiday Home Abroad: 2026 Starter Guide

Published on: May 28, 2026

Quick answer: Buying a holiday home abroad is part lifestyle, part investment and part paperwork, and the first step is to be honest about which goal leads, lifestyle, investment, or future residency, because it changes the entire shortlist. Score candidate countries on foreign-ownership rules, total transaction cost (budget 7–15% above the price for taxes, legal and registration), distance, rental demand, visa angle and currency exposure. Engage an independent lawyer, get a local tax number early, model net rental yield rather than gross, and check short-term-rental rules and double-taxation treaties before you commit.

A holiday home abroad is part lifestyle, part investment, and part paperwork, and the buyers who do well are the ones who treat all three seriously from day one. This guide walks a first-time international buyer through the whole journey in 2026: choosing the right country, understanding the real cost, financing, taxes, the buying process, and how to make the property earn its keep when you're not there.

Think of this as the hub. Wherever you land, you can drill into specific countries and cities and browse verified listings on JanusHermes.

Step 1: Get clear on why you're buying

Everything downstream depends on this. Be honest about your primary goal, because it changes the entire shortlist:

• Lifestyle first (you'll use it most weeks): prioritize a place you love, easy flights from home, and a community you fit into. Yield matters less.
• Investment first (it must pay for itself): prioritize rental demand, gross yield, low transaction costs and easy management. Your feelings about the view matter less.
• Future relocation / residency: prioritize visa pathways (e.g. Golden Visa programs) and long-term livability over short-term rental returns.

Most buyers want a blend, just know which one wins when they conflict.

Step 2: Choosing the country

Score candidate countries on six practical factors rather than on holiday memories:

1. Foreign-ownership rules. Can you own freehold in your own name, or only leasehold / via a company? (e.g. clean freehold in Portugal, Spain, Turkey, Dubai freehold zones; leasehold/structures in Bali and Thai land.)
2. Total transaction cost. Plan for 7–15% above the price in taxes, legal and registration, this varies hugely by country and erodes year-one returns.
3. Distance and access. A 2-hour flight gets used; a 14-hour one often doesn't.
4. Rental demand. If it must earn, is there real, year-round or strong-season tenant demand?
5. Residency / visa angle. Does a purchase unlock a Golden Visa or long-stay visa you want?
6. Currency and stability. FX swings can wipe out a yield, or hand you a discount. Understand your exposure.

Popular 2026 starting points by motivation

Step 3: Understand the real cost

The purchase price is the start of the budget. A realistic all-in model includes:

• Transaction taxes (transfer tax / stamp duty / VAT on new builds), anywhere from ~2% to 10%+
• Legal fees, hire an independent lawyer, not the seller's
• Notary and registration
• Agency commission (sometimes buyer-paid)
• Currency-exchange cost when moving funds across borders
• Furnishing and setup

A safe planning figure is 10–15% on top of the price for one-off costs in most markets, lower in some (e.g. ~7–8% Dubai), higher in others.

Step 4: Financing options

• Cash is simplest and often the strongest negotiating position abroad.
• Local mortgage from a bank in the target country, common in the EU, available in Dubai (non-residents usually need a larger deposit), harder in frontier markets.
• Equity release on your home-country property to fund the purchase in cash.

If you finance locally, factor in mortgage registration fees, valuation, and currency mismatch between your income and your loan.

Step 5: Taxes you can't ignore

Three layers, in the country where you buy and potentially back home:

1. At purchase: transfer tax / stamp duty / VAT.
2. While you own: annual property tax (where it exists, note Dubai has none), wealth tax in a few countries, and income tax on rental income in the country where the property sits.
3. At sale: capital gains tax (rates and exemptions vary widely).

Also check double-taxation treaties between your home country and the target country, and whether rental income or capital gains must also be declared at home. This is the area where a cross-border tax advisor pays for themselves.

Step 6: The buying process (typical flow)

While details differ by country, the shape is usually similar:

1. Shortlist and view (in person or via trusted local agents)
2. Make an offer and agree terms
3. Engage an independent lawyer for due diligence, title, debts, permits, zoning
4. Reservation / preliminary contract with a deposit (often ~5–10%)
5. Final contract before a notary, balance paid
6. Registration of title in your name
7. Set up utilities, insurance, and (if renting) a management company

Get a local tax number early where required (e.g. NIE in Spain, OIB in Croatia, NIF in Portugal), you usually can't transact without one.

Step 7: Making it earn, holiday rentals

If the property needs to pay for itself:

• Check short-term-rental rules first. Many cities now license or cap holiday lets, buy where it's allowed, not where you hope it will be.
• Model net yield, not gross, subtract management (commonly 15–25% of rent), cleaning, taxes, vacancy and service charges.
• Decide your management model: self-manage remotely, hire a local manager, or use a full short-term-rental operator.
• Furnish for the guest, not for you, neutral, durable, photogenic.

The five most common first-timer mistakes

1. Budgeting only the sticker price and getting blindsided by 10–15% in costs.
2. Skipping the independent lawyer to save a fee.
3. Buying for the holiday, not the rental math, then needing the rental math.
4. Ignoring short-term-rental regulation until after completion.
5. Underestimating currency risk on both the purchase and the income.

Frequently asked questions

Is buying a holiday home abroad a good investment in 2026?
It can be, if you choose a market with real rental demand, manageable transaction costs and a clear exit. Treat lifestyle and investment as separate goals and be honest about which one leads.

How much extra should I budget beyond the price?
Plan for 10–15% above the purchase price in most countries for taxes, legal, notary and registration, though some markets (like Dubai) are closer to 7–8%.

Can I get a mortgage as a foreigner?
Often yes, especially in the EU and Dubai, though non-residents usually face larger deposits and stricter terms than locals.

Do I pay tax twice on rental income?
Rental income is generally taxed where the property is located, and may also need declaring at home, double-taxation treaties usually prevent paying twice, but rules vary. Get cross-border tax advice.

Which countries are easiest for first-time foreign buyers?
Portugal, Spain, Turkey, Dubai and Greece are among the most foreign-buyer-friendly, with clear processes and freehold ownership.

Ready to turn the shortlist into real options? Explore verified holiday-home listings by country, city and budget on JanusHermes.

Informational only, not legal, tax or investment advice. Always engage qualified local professionals before buying property abroad.

A note on the numbers: where no source is named, the market figures in this article (prices, yields, costs) are indicative estimates compiled from publicly available market data and industry reporting at the time of writing. Markets move and rules change, so treat them as a starting point and verify current figures with official sources before acting on them.