International Property Tax Guide 2026: Buying Costs & CGT by Country

Which country has the lowest property taxes for foreign buyers in 2026?

The UAE is the lowest-tax jurisdiction of the eight: individuals pay 0% on rental income and capital gains and there is no annual property tax, versus 19%–28% capital-gains tax and taxed rental income across most of Europe. After the headline rates, total one-off buying costs are the next big differentiator.

UAE (Dubai): about 7%–10% all-in (4% Land Department transfer fee); 0% annual, rental and capital-gains tax.
Cyprus: transfer fees fully waived on new builds where VAT is paid; no annual property tax; 20% CGT on property.
Spain: about 10%–14% all-in; non-EU landlords taxed 24% on gross rent; 19% flat CGT.
Portugal: roughly 8%+ (flat 7.5% IMT for non-residents from 1 September 2026); CGT on 50% of the gain at marginal rates.
Montenegro: 3%–6% transfer tax on resales or 21% embedded VAT on new builds; flat 15% income and capital-gains tax.
Thailand: about 2%–4% on a condo; 15% withholding on non-resident rent; no separate CGT.
Indonesia (Bali): 5% acquisition tax; 20% withholding on non-resident rent.
UK: up to 19% stamp duty for a non-resident second home; 24% CGT on residential gains.

Figures are 2026 and jurisdiction-specific; your effective rate depends on residency, price band and structure.

What property taxes does a foreign buyer pay in Dubai and the UAE in 2026?

The UAE charges individuals 0% — no tax on rental income, no capital-gains tax and no annual property tax. The only material cost is the one-off Dubai Land Department (DLD) transfer fee.

Buying costs: 4% DLD transfer fee (by convention the buyer pays, though negotiable), plus about 2% agency and registration/title fees; budget roughly 7%–10% all-in. On an AED 2M home the fee is about AED 80,000.
Stamp duty/VAT: none on residential; new residential is zero-rated for VAT, while commercial property carries 5% VAT.
Annual property tax: none. Dubai levies a "housing fee" of 5% of the annual rental value, billed monthly via DEWA to occupiers.
Rental income and CGT: 0% for individuals. But rent earned by a company is business income under the 9% federal corporate tax (0% below AED 375,000 profit) — the personal-versus-company divide that defines UAE structuring.
Residency: the 10-year Golden Visa needs AED 2M of property at DLD-assessed value; since a February 2026 circular, mortgaged and off-plan/payment-plan units can qualify with no fixed minimum down payment (a bank NOC is needed where there is a mortgage).

Structuring angle: a UAE family foundation (ADGM, DIFC or RAK ICC) can elect to be treated as fiscally transparent under Article 17 of the Corporate Tax Law, so income is looked through to individuals at 0% — beating the 9% a normal holding company would bear.

What property taxes do foreigners pay in Cyprus after the 2026 reform?

Cyprus has no annual property tax and, after the 2026 reform, no stamp duty on the purchase contract — but it charges 20% capital-gains tax on property and taxes rental income under progressive income tax.

Buying costs: transfer fees on a sliding scale of 3% / 5% / 8%, carrying a standing 50% reduction, and fully waived on new builds where VAT was paid. Contract stamp duty was abolished in the 2026 reform.
VAT: 19% standard; a reduced 5% applies to a main home on the first 350,000 euros of value and first 130 square metres (property under 475,000 euros and 190 square metres).
Annual property tax: none — immovable property tax was abolished in 2017; only small municipal and sewerage rates remain.
Rental income: progressive income tax (post-reform, from 1 January 2026: 0% up to 22,000 euros, then 20% / 25% / 30% bands, with the top 35% rate applying only above 72,000 euros). The reform abolished the SDC on rent, so non-doms now pay only the 2.65% General Healthcare (GHS) levy. Non-residents are taxed on Cyprus-source rent.
CGT: 20% on gains from Cyprus property (residents and non-residents alike); share disposals are 0% unless the company is "property-rich" (threshold lowered to 20% of assets in Cyprus real estate). Corporate tax rose to 15% from 1 January 2026.

Residency: fast-track permanent residency (Category 6.2) needs 300,000 euros plus VAT in new-build residential plus 50,000 euros of secured foreign passive income.

How much tax do non-residents pay on Spanish property in 2026?

Non-EU buyers face the heaviest rental treatment in Spain — 24% tax on gross rent with no deductions — while total buying costs run about 10%–14% and capital gains are taxed at a flat 19%.

Buying costs: resale transfer tax (ITP) is regional, roughly 6%–13% (Madrid 6%, Andalucia 7%, Catalonia up to 13%); new build is 10% VAT plus about 1.5% stamp duty (AJD). Add roughly 2%–3% notary, registry and legal.
Annual property tax: IBI of about 0.4%–1.1% of cadastral value; non-let second homes also pay imputed-income tax (1.1%/2% of cadastral value taxed at 19% for EU residents, 24% for non-EU).
Rental income: EU/EEA residents pay 19% on net rent (deductions allowed); non-EU owners, including UK residents post-Brexit, pay 24% on gross with no deductions.
CGT: 19% flat for all non-residents (EU and non-EU); the buyer withholds 3% of the price on account.
Wealth tax: from 700,000 euros of Spanish-situs assets, plus a permanent state Solidarity Tax on fortunes above roughly 3M euros.

Residency: the Golden Visa was abolished on 3 April 2025 — no property-for-residency route remains, and the widely reported "100% tax on non-EU buyers" is a stalled proposal, not law.

What is the new Portugal property tax for non-residents in 2026?

From 1 September 2026, non-tax-resident buyers pay a flat 7.5% IMT transfer tax on residential property under Decree-Law 97/2026 — roughly double the old effective rate for many — on top of 0.8% stamp duty and about 1% in costs.

Buying costs: flat 7.5% IMT for non-residents from 1 September 2026 (residents keep the progressive scale topping at 7.5%), plus 0.8% stamp duty and about 1% notary and registration.
Refund: the flat charge can be cancelled if you become a Portuguese tax resident within two years, or let the property long-term at capped rent (up to 2,300 euros/month) for 36 months within five years.
Annual property tax: IMI of about 0.3%–0.45% of the tax value (VPT) for urban property, plus the AIMI wealth surcharge above 600,000 euros per person (0.7%–1.5%); companies pay 0.4% flat with no exemption.
Rental income: standard 25% autonomous rate on residential rent (non-residents can alternatively opt for aggregation at progressive rates), reduced to as low as 5%–15% for longer-term leases; non-residents are taxed on Portuguese-source rent.
CGT: non-residents now get the same 50% taxable-gain exclusion as residents, taxed at progressive rates on the included half.

Residency: the Golden Visa still exists but has had no real-estate route since October 2023; the NHR regime is closed to new entrants, replaced by the narrower IFICI.

What taxes apply when a foreigner buys property in Montenegro?

Montenegro is a flat-15% jurisdiction — 15% on rental income and 15% on capital gains — with a transfer tax of 3%–6% on resales, while new builds carry 21% VAT embedded in the price instead.

Buying costs: resale transfer tax is progressive — 3% on the first 150,000 euros, 5% from 150,000 to 500,000 euros, and 6% above 500,000 euros. A new build bought from a developer has no transfer tax but 21% VAT is included. Add about 1%–3% legal and notary.
Annual property tax: roughly 0.25%–1% of market value (municipal, varying by type, location and age).
Rental income: 15% on net rent; non-residents usually file through a local tax representative.
CGT: 15% on gains, with exemptions for a genuine main residence and transfers between spouses or parents and children.
Foreign ownership: apartments and buildings can be owned freely; some agricultural, forest or border land must be held via a local company.

Residency: there is no citizenship-by-investment (that closed at the end of 2022). Residence-by-property continues and, since 17 January 2026, requires a tax-assessed value of at least 150,000 euros — set by the Tax Authority, not the purchase price — for non-EU nationals, giving a one-year renewable permit with permanent residence after five years.

Can foreigners own property in Thailand, and what tax do they pay?

Foreigners cannot own land freehold in Thailand but can own condominium units freehold within a building's 49% foreign quota; buying costs on a condo are low (about 2%–4%) and there is no separate capital-gains tax.

Ownership: condos up to the 49% foreign quota (measured by saleable floor area); land and villas only via a long leasehold (typically 30 years) or a genuinely Thai-owned company — nominee arrangements are illegal.
Buying costs: 2% Land Office transfer fee (often split buyer/seller), plus either 3.3% Specific Business Tax (if the seller owned under five years) or 0.5% stamp duty — never both. A buyer is typically about 2%–4% all-in on a condo.
Annual property tax: the Land and Building Tax is low — roughly 0.02%–0.10% of appraised value for homes, with primary-residence allowances.
Rental income: residents pay progressive income tax (0%–35%); non-residents face a 15% withholding on gross rent.
CGT: no separate capital-gains tax — the gain is taxed through the withholding/income-tax mechanism at the Land Office on disposal.

Residency: buying property grants no visa or foreign-quota priority; investors use the Long-Term Resident (LTR) visa or the Thailand Privilege (Elite) visa separately.

How are foreign property owners taxed in Bali, Indonesia?

Foreigners cannot own freehold land in Indonesia and normally buy Bali villas on a 25–30-year leasehold; the buyer's acquisition tax (BPHTB) is 5% and non-resident rental income is taxed at 20% of gross, often reduced to about 10% under a tax treaty.

Ownership: leasehold (Hak Sewa) of 25–30 years, extendable, is most common; Hak Pakai (right to use) is available to holders of a valid KITAS/KITAP or the Second Home Visa; or a PT PMA foreign-owned company for investment and rental.
Buying costs: BPHTB of 5% on the assessed value (NJOP) or price, whichever is higher, plus about 1%–2% notary and registration. Sellers pay a 2.5% final income tax on transfer.
VAT: about 11% effective on new non-luxury property from a developer; a 2026 government-borne VAT incentive gives up to 100% relief on the first IDR 2bn of eligible ready-to-occupy homes handed over in 2026.
Annual property tax: PBB is minimal — typically under about USD 200 a year for a villa.
Rental income and gains: non-residents face 20% withholding on gross rent; individual gains are generally captured by the seller's 2.5% final transfer tax, with no separate CGT.

Residency: the Second Home Visa (5+5 years) can be obtained by either of two routes — a bank deposit of IDR 2bn (about USD 130,000) held in an Indonesian state bank, or ownership of Indonesian property worth at least USD 1 million held under a Hak Pakai title. The property route is the far higher threshold.

What tax does a non-resident pay to buy and own UK property in 2026?

A non-resident buying an additional UK home pays up to 19% stamp duty at the top band — the 5% additional-dwelling and 2% non-resident surcharges stack on the standard rates — plus income tax on rent and 24% capital-gains tax on residential gains.

Buying costs (SDLT, England and Northern Ireland): 0% to 125,000 pounds, 2% to 250,000 pounds, 5% to 925,000 pounds, 10% to 1.5M pounds, 12% above; +5% for additional dwellings and +2% for non-residents stack (up to 19% at the top). A company buying residential over 500,000 pounds pays a flat 17% unless a relief applies.
Annual property tax: no national property tax; Council Tax applies. Enveloped residential over 500,000 pounds pays annual ATED of 4,600 to 303,450 pounds for 2026-27 unless a relief is claimed.
Rental income: taxed at 20/40/45%; under the Non-Resident Landlord Scheme the agent or tenant withholds 20% unless HMRC approves gross payment.
CGT: 18% (basic-rate) / 24% (higher-rate) on UK residential gains; non-residents are taxable on UK residential and commercial gains and on "property-rich" companies.
The non-dom regime was abolished from 6 April 2025 and replaced by a residence-based system; inheritance tax is now residence-based too.

Residency: there is no golden visa — the Tier 1 (Investor) visa closed on 17 February 2022, and buying property confers no immigration status.

Should I buy property abroad in my own name, a company, or a foundation?

For a single home most buyers use personal ownership (simplest and cheapest, with no corporate tax layer); a company or SPV suits portfolios and clean share transfers; a UAE family foundation or trust is the succession tool — but the right choice depends on your nationality and tax residency, and home-country rules can override the local treatment.

Own name: cheapest and simplest, but exposed to higher non-resident rates (for example Spain's 24% on gross rent), local probate, forced-heirship regimes, and any local wealth tax.
Local or holding company: transfers shares rather than land, sidestepping local probate, but adds corporate tax — about 9% (UAE, above AED 375,000), 15% (Cyprus), 19% (Portugal), 25% (Spain). For UK residential a company is usually penal: a flat 17% SDLT above 500,000 pounds plus annual ATED.
UAE family foundation: can elect fiscal transparency (0% personal rate), passes assets by charter not court, and ring-fences them from future personal creditors — the leading HNWI succession vehicle.
Anti-avoidance always applies: CRS auto-exchange across 120+ jurisdictions, CFC attribution of passive rent, economic-substance rules and beneficial-ownership registers mean structuring is visibility, not secrecy.

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Answers

Ownership & structuring, answered

Which countries have no annual property tax or capital-gains tax for foreign buyers?

The UAE is the standout: individuals pay 0% on rental income and capital gains and there is no annual property tax, only a one-off roughly 4% Dubai Land Department transfer fee and a 5%-of-rent municipal housing fee paid by occupiers. Cyprus also has no annual property tax, abolished in 2017, but still charges 20% capital-gains tax on property. Most other markets levy both an annual charge and CGT.

Do non-residents pay capital gains tax when they sell property abroad?

Usually yes. Non-residents pay a flat 19% in Spain, 18% or 24% on UK residential property, 20% in Cyprus, and 15% in Montenegro, while Portugal taxes 50% of the gain at progressive rates. The main exception is the UAE, where individuals pay 0%; Thailand and Indonesia instead capture the gain through a transfer-based withholding tax rather than a separate CGT.

Which country's golden visa can I still get through property in 2026?

The UAE (10-year Golden Visa at AED 2M of property), Cyprus (fast-track permanent residency at 300,000 euros plus VAT in new-build) and Greece remain active property routes. Spain's Golden Visa ended on 3 April 2025, Portugal has had no real-estate route since October 2023, the UK's Tier 1 investor visa closed in February 2022, and Montenegro's citizenship-by-investment closed at the end of 2022, though residence-by-property continues from a 150,000 euro assessed value.

Is it cheaper to buy overseas property through a company or in my own name?

It depends on the country. A company lets you transfer shares rather than land, which helps succession, but adds corporate tax of roughly 9% (UAE, above AED 375,000), 15% (Cyprus), 19% (Portugal) or 25% (Spain). For UK residential property a company is usually penal: a flat 17% SDLT above 500,000 pounds plus annual ATED of 4,600 to 303,450 pounds. In the UAE, personal ownership at 0% typically beats a 9%-taxed company.

Can foreigners own property freehold in Thailand or Bali?

Not land. In Thailand foreigners can own condominium units freehold within a building's 49% foreign quota, but land and villas require a 30-year leasehold or a genuinely Thai-owned company. In Bali, Indonesia, foreigners cannot own freehold (Hak Milik) land and typically use a 25–30-year leasehold (Hak Sewa), a Hak Pakai right-to-use title, or a PT PMA foreign-owned company.

Do I get taxed twice on rental income from a property abroad?

Usually not on the same income twice. The property's country taxes the rent first — for example 24% on gross for non-EU landlords in Spain, or a 20% UK withholding under the Non-Resident Landlord Scheme — and your country of tax residence then typically grants a foreign tax credit under a double-taxation treaty. You still normally declare the foreign rent at home, and CRS auto-exchange means your tax authority already sees it.

Will my foreign property be hit by inheritance tax in two countries?

It can be, because inheritance tax is often charged both where the property sits (situs) and where you are domiciled or tax-resident, and the UK moved to a residence-based inheritance-tax system from 6 April 2025. Double-tax treaties and structures such as a UAE family foundation or a company that transfers shares rather than land can reduce exposure to local probate and forced heirship, but home-country anti-avoidance rules may look through them.