Buying a second home abroad rarely begins with a spreadsheet. It begins with a dream: morning coffee on a terrace overlooking the bay, silence broken only by cicadas, and a phone that, for once, can truly be left at home. Yet in the premium segment, a second home is no longer simply a holiday residence. In this article, we will show that premium property abroad has become a tangible financial asset that combines capital protection against inflation with a particular lifestyle, while also explaining what to look out for before and during the purchasing process.
At Partners International, we have been supporting investors in complex wealth-related decisions since 1994, operating as a leader among premium real estate agencies in Poland. Our role in international markets is based on a private banking advisory model – we are not a travel agency selling mass-market offers, but trusted guides providing access to a carefully selected investment portfolio in destinations such as Spain, Portugal, Italy, Croatia, Cyprus, the French Riviera and Dubai.
Why a second home is more than just a holiday property
A second home abroad is often seen purely as a holiday retreat, but in the premium segment it serves a much broader purpose. For some owners, it is a private place to relax – an exclusive space of their own, ready to use at any time, without the need to make reservations, negotiate with hotel reception or share the property with strangers. For others, it becomes a home for part of the year, where they spend the winter months escaping the grey skies and cold weather.
Increasingly, a second home also serves as a base for remote work. The globalisation of business means that company executives and investors can manage their affairs from virtually anywhere in the world, provided they have the right infrastructure: a stable fibre-optic internet connection, a quiet room for video calls and proximity to an airport allowing a quick return whenever necessary. A well-located property then becomes not merely a lifestyle addition, but a genuine working asset.
Another important role of a second home is capital preservation. Allocating part of one’s wealth to a stable Western economy or a mature Asian or Middle Eastern market provides protection against local inflation and exposure to fluctuations in a single currency or stock market. It is a form of diversification which, unlike stocks or bonds, also provides tangible, practical value: the property can be lived in, visited, or rented out to generate an additional income stream, while the owner retains full control over when it is made available.
However, one common misconception should be addressed from the outset: a second home does not need to maximise investment returns for the purchase to be considered successful. Its greatest value may simply lie in convenience, privacy and the ability to return regularly to a place that gradually becomes a natural extension of the owner’s life – something more than an address on a title deed. If, on the other hand, the primary objective is passive income, it is more realistic to treat the purchase from the beginning as a commercial investment and select the location, property format and rental management model accordingly – a subject discussed in greater detail later in this guide.
Who should consider such a purchase and how often will the property actually be used?
Before deciding on a specific property, it is worth having a conversation that rarely takes place while browsing listings – a conversation about time. How many weeks per year will we realistically spend in the property? Does our work allow for longer stays lasting several months, or only short weekend trips? Will the home still be equally comfortable in five or ten years, once family, health or professional circumstances have changed? And finally, will repeatedly travelling to the destination several times a year eventually become tiring, regardless of how beautiful the destination itself may be?
The art of choosing the right location and property type
Choosing a location should rarely stop at selecting a country. It requires an analysis of the specific coastline, neighbourhood and sometimes even the individual plot of land, because a place that feels perfect during a short summer holiday may prove entirely unsuitable for spending three or six months of the year.
The first filter should be flight connections and transfer time from the airport. A property located three hours by car from the nearest airport dramatically reduces the likelihood of spontaneous weekend trips. Over time, owners may simply stop using it. The optimal scenario is a short, preferably direct flight combined with an equally short transfer on arrival. The second filter is how the area functions outside the main season. Some tourist resorts close their restaurants, shops and medical practices as early as November and only reopen in April. For someone planning to spend the winter there while working remotely, such a location can become disappointing, regardless of how spectacular it looks in July. The third filter is security – both physical and macroeconomic. Today, peace of mind is often the highest form of luxury, while legal stability and low crime levels translate directly into everyday comfort.
Local development plans should not be overlooked either. Plots located in regions subject to strict environmental regulations may be more difficult to develop, but these same restrictions can effectively protect an investment from unwanted hotel construction just beyond the property boundary, preserving privacy and the value of the view for many years. It is worth looking several years ahead. A planned marina expansion, new tram line, ring road, hotel or shopping centre may significantly increase a location’s attractiveness, but it can just as easily change its character. A quiet neighbourhood today may become one of the busiest parts of the coastline within a few years. Before purchasing, it is therefore worth reviewing local development plans and public infrastructure projects that may affect both everyday comfort and the future value of the property.
Choosing a destination
Today’s premium market offers investors a wide range of destinations, each with its own risk profile and lifestyle proposition. None should be treated as an automatic or obvious choice.
Spain has long been a natural starting point for Polish buyers, and the Costa Blanca demonstrates particularly well how dramatically location can change the character of what appears to be a single, homogeneous coastline. The south, including Torrevieja and Orihuela Costa, offers a large market and relatively accessible entry prices – a two-bedroom apartment can be purchased there for between €180,000 and €250,000. The north of the region, including Jávea, Dénia, Altea and Moraira, is a completely different proposition: mountainous landscapes, intimate towns that remain active throughout the year and correspondingly higher prices – apartments starting from €250,000 and villas from €500,000. In Moraira itself, homes with sea views regularly exceed €1 million, while the best addresses reach €2–3 million. The Spanish property market has clearly accelerated: according to the national statistics institute INE, residential property prices in Spain increased by 12.9 percent year-on-year in the first quarter of 2026. For many investors, this means that buying a second home is becoming not only a lifestyle decision but also part of a long-term capital allocation strategy. Beyond the Costa Blanca, the Costa del Sol with Marbella and Estepona, the quieter Balearic Islands, Madrid and Barcelona also remain highly active markets.
Portugal competes with Spain primarily through quality of life and market predictability. Lisbon and Cascais attract families because of their international schools as well as investors seeking stable long-term rental demand, while the wild Alentejo coastline, with enclaves such as Comporta and Melides, appeals to those looking for complete discretion among pine forests and undeveloped beaches. Italy attracts buyers with Tuscany and its northern lakes, but increasingly also with Puglia, where restored trulli and masserie have achieved the status of truly distinctive properties. The French Riviera remains synonymous with stability and prestige.
Cannes, Antibes and Saint-Tropez form a mature and liquid market, although also one of the most expensive in Europe. Greece, with the Cyclades and Peloponnese, offers a distinctive combination of an authentic lifestyle and growing interest in its Golden Visa programme. Cyprus attracts buyers with its favourable tax environment and relatively short flight times from most European capitals. Dubai represents an entirely different model – a modern metropolis with no annual property tax and a highly liquid resale market. Thailand, finally, with Phuket and Bangkok in particular, is an option for investors prepared to accept a different legal ownership structure in exchange for an exceptional climate and relatively low maintenance costs.
Apartment or villa
The choice between an apartment and a villa defines the owner’s operational responsibilities for many years to come. An apartment in a gated development with security and communal areas means fewer responsibilities: the property can easily be locked up for several months, while monitoring, pool maintenance and landscaping are handled by the community. The trade-off is the recurring community fee and regulations that may restrict, for example, changes to the building façade or short-term rentals. A villa offers complete privacy, a private swimming pool and extensive grounds, but requires ongoing technical maintenance, servicing of filtration systems, regular garden care and a noticeably higher operating budget. Traditional country estates – Portuguese quintas, Italian casali or Greek ktimata – combine aspects of both worlds, offering space and authenticity, but almost always requiring substantial modernisation of utilities and installations before they reach premium standards.
Resale value
When buying a property, it is worth considering not only personal needs but also its future liquidity. Properties that tend to attract the greatest interest from future buyers are those with good transport connections, reasonable maintenance costs, functional layouts and easy access to infrastructure. Spectacular, highly individual designs may delight their owners, but after several years the pool of potential buyers can be significantly smaller. From an investor’s perspective, a property’s appeal should therefore be assessed not only through the lens of personal preferences but also in terms of its broader marketability.
New-build or resale property
New developments in mature Southern European markets now offer modern finishing standards and thermal insulation meeting current European regulations, together with full developer warranties. Importantly, carefully selected projects purchased during the early pre-sale phase can sometimes increase in value by fifteen to twenty percent by the time the keys are handed over, although this is by no means a universal market rule and depends on both location and the developer’s reputation. The resale market, in turn, offers invaluable and irreplaceable locations in historic city centres where new construction is legally impossible and restored historic buildings tend to retain their value exceptionally well. Buyers should, however, remember that older properties in Southern Europe very rarely have efficient central heating or adequate wall insulation, while heritage protection restrictions can prevent the replacement of windows, installation of external air-conditioning units or even obtaining a new short-term rental licence. The cost of upgrading a historic apartment to premium standards can therefore be surprisingly high, which is one of the main reasons why resale transactions require a thorough technical audit before an offer is submitted.
How much does buying and maintaining a second home really cost?
The advertised asking price is only the starting point. Transfer taxes, notary and registration fees and the cost of an independent legal adviser must all be added, while the structure of these expenses varies significantly between jurisdictions. The table below summarises the key differences across several markets in which our clients most frequently allocate their capital.
| Market | Resale market | New-build market | Estimated costs above purchase price |
| Portugal | IMT (0–8%, depending on value and purpose of purchase) + Imposto do Selo 0.8% | Essentially the same tax system | 7–10% |
| Spain | ITP 6–11% (depending on the region) | VAT 10% + AJD 1–1.5% | 10–13% |
| Italy | Registration tax of 9% of the cadastral value + notary fees | VAT instead of registration tax | 10–15% |
| France / French Riviera | Droits de mutation + notary fees approx. 7–8% | Lower notary fees than on the resale market (VAT included in the price of a new property) | 2–3% (new-build) / 7–8% (resale) |
| Greece | Property transfer tax 3% + administrative fees | VAT remains suspended (transfer tax applies) | 8–10% |
| Cyprus | Property transfer fees + stamp duty + legal costs | VAT 19% (5% for qualifying properties) | 5–10% |
| Dubai | Dubai Land Department fee 4% + registration fees | The same mechanism applies | 5–9% |
| Thailand | Transfer fee 2%; other costs depend on how they are divided between the parties | Developers often cover part of the fees | 2–7% |
The structure of ongoing costs can be equally varied, and these are often underestimated by buyers focused primarily on the transaction price. Annual property tax typically ranges from a fraction of a percent to slightly above one percent of the cadastral value – Portuguese IMI ranges from 0.3 to 0.45 percent, Spanish IBI from 0.4 to 1.1 percent, while Italian IMU may reach 1.14 percent, with no exemption for second homes owned by non-residents. Greek ENFIA is calculated differently, ranging from two to sixteen euros per square metre depending on the area and standard of the building. Cyprus has had no annual property tax since 2017, which can be an important consideration when comparing the overall cost of ownership. Dubai does not impose an annual property tax either, with the only recurring charge being a relatively modest housing fee calculated on rental value. In France, owners may additionally be liable for the IFI wealth tax once the net value of French real estate exceeds €1.3 million, as well as the local taxe d’habitation on second homes, which in some municipalities may be increased by as much as sixty percent.
Additional expenses common to almost all premium markets include property insurance and community fees in apartment developments. In standard developments with lifts and underground parking, these typically amount to between €1.50 and €2.50 per square metre per month, while in gated boutique resorts with SPA facilities and 24-hour security they can rise to €3 or even €5 per square metre. One fundamental advantage of Mediterranean or Asian climates is the absence of the high fixed winter heating advances commonly found in Polish service charges – investors pay for what they actually consume, primarily electricity used for air conditioning during the summer.
5. Who manages the property while the owner is away?
A luxury property left unattended for many months can deteriorate much faster than expected, which is why professional property management is a standard rather than an optional extra in the premium segment. The role of an independent property manager includes regular property inspections and security checks, collecting local correspondence, monitoring air-conditioning, underfloor heating and swimming pool systems, coordinating external contractors, pool companies, gardeners and cleaning teams, and above all responding quickly to plumbing or electrical failures before they cause more serious damage. Humidity control is particularly important and often overlooked. In countries with direct access to the ocean, leaving a tightly sealed house closed for six months without regular ventilation can easily lead to deterioration of interiors, furniture and electrical systems. A good property manager prepares the home before the owner’s arrival, switching on heating or air conditioning and checking cleanliness so that the first hour after a long journey is a moment of relaxation rather than a list of problems requiring attention.
Closely connected with property management is the issue of year-round comfort, particularly in homes located in warmer climates. A villa viewed in July, under full sunshine with the windows open to an evening breeze, may perform very differently in January. Excessive sunlight and a south-western orientation without appropriate blinds can cause interiors to overheat in summer, while inefficient winter heating can also become a problem in coastal regions, where persistent humidity rather than frost is often the main issue and may require the use of expensive electric heaters. Acoustic insulation should also be checked: a home overlooking a charming square full of restaurants may remain lively until late at night, which some owners find appealing while others would immediately rule it out. Drinking water quality, reliable mobile network coverage and access to fast fibre-optic internet complete the list of details that cannot be seen in marketing photographs but make a significant difference to everyday comfort throughout the year.
6. Is it worth renting out the property?
Buying a property for personal use is very often combined with the intention of renting it out during periods when the owner is not using it. The actual profitability of this approach, however, requires an understanding of two separate business models, as mixing them into a single decision regularly leads to disappointment.
Long- and medium-term rentals remain the safest and most predictable strategy for owners looking for stable passive income. Markets such as Portugal and Spain now attract large numbers of affluent expatriates, contract-based executives and digital nomads seeking stable accommodation for periods ranging from several months to a year. This model avoids many of the administrative barriers associated with short-term rental licensing, reduces tenant turnover and therefore wear and tear on furnishings, and can also benefit from more favourable taxation. In Portugal, long-term rental income is subject to a flat tax rate of twenty-five percent, without the need for particularly complex accounting. The downside is reduced flexibility in terms of when the owner can use the property.
Short-term rentals can theoretically generate the highest returns but involve substantially greater operational commitment and increasingly strict regulations in mature markets. Similar licensing mechanisms operate in Italy, Greece and Spain, where authorities in cities such as Barcelona systematically restrict the number of new permits in order to protect the local residential market. A neighbour’s success on a booking platform is by no means a guarantee of similar results for another property. Before making a decision, buyers should establish whether the municipality is still issuing new permits and whether an existing licence held by the seller can be transferred to the new owner. Professional management agencies typically handle the entire guest experience, from check-in to cleaning, in exchange for a commission of approximately fifteen to thirty percent of the generated profit.
Regardless of the model selected, one principle remains unchanged: the gross return presented in a developer’s sales brochure or an estate agent’s listing virtually never reflects the owner’s actual income. Only after deducting operator commissions, taxes, management expenses and insurance can an investor see how much income actually remains. Rental return calculations that ignore these items rarely correspond with reality and are one of the most common causes of disappointment with an investment over a period of several years.
7. Legal, tax and financial considerations – and the question of resale
In the premium real estate market, transaction security is non-negotiable and is not an area in which savings should be sought. The foundation of every safe property purchase abroad is cooperation with an independent local lawyer – a legal firm that has no connection whatsoever with the seller or local developer and represents solely the buyer’s interests. Their responsibilities include verifying the title to the property and any existing mortgage liabilities, checking outstanding payments owed to the owners’ association and, particularly in the case of resale houses, establishing whether previous extensions – such as swimming pools, terraces or additional floors – were constructed legally and with the necessary administrative approvals. Fees for a complete legal due diligence process typically range from one to one and a half percent of the property value, depending on the market, or may be charged on an hourly basis.
Tax residency is another separate and frequently underestimated issue. Polish citizenship or the lack of local residency does not necessarily prevent buyers from obtaining financing through the local banking system. In most mature European markets, investors may be able to borrow up to eighty percent of the property value, calculated on the lower of either the transaction price or the independent valuation carried out by the bank’s surveyor. Any difference must be covered with the buyer’s own funds. Financing is usually granted in the local currency, most commonly euros, which for buyers earning income in Polish złoty introduces additional foreign exchange risk. Banks account for this by applying an additional buffer, which reduces maximum borrowing capacity compared with borrowers whose income is already denominated in euros. In practice, however, using debt financing in the premium segment is often a deliberate investment decision designed to preserve greater portfolio liquidity rather than a necessity caused by insufficient cash.
Additionally, already at the purchasing stage, it is worth checking local inheritance rules applying to the property as well as any potential tax liabilities of heirs, as these vary significantly between countries.
Capital invested in property must ultimately retain liquidity, which is why future resale should already be considered at the time of purchase. Features that support strong liquidity include an attractive location protected from future development, an unobstructed view, a private and spacious terrace, a guaranteed parking space within the building, a reliable lift, access to urban infrastructure within walking distance and reasonable, predictable maintenance costs in relation to the property’s size. The most spectacular and heavily personalised interiors or unusual architectural layouts may delight the current owner, while simultaneously reducing the potential buyer pool significantly on the resale market – an important relationship to bear in mind when designing a home according to personal tastes.
8. The most common mistakes when buying a second home
Across hundreds of transactions completed in international markets, several recurring patterns appear that can easily be avoided in advance. The first is buying under the influence of holiday excitement. Evaluating the functionality of a home and the safety of its surroundings requires a calm, analytical approach rather than the temporary enthusiasm of a holiday, which naturally fades once everyday life resumes. A closely related mistake is viewing a property only at the height of the season: a house that works perfectly in August, located in a vibrant marina full of restaurants, may turn out to be completely isolated from infrastructure in January.
Another very common mistake is underestimating total running costs while focusing exclusively on the purchase price per square metre. High community fees, swimming pool management expenses, smart-home systems and local property taxes can significantly affect an owner’s annual cash flow if they are not calculated before the preliminary agreement is signed. Relying exclusively on lawyers recommended by the seller is equally risky. Failing to obtain independent legal due diligence is a fundamental error whose consequences may only emerge years later, when it becomes apparent that a terrace extension or swimming pool was never legally approved.
The list also includes overly optimistic rental return assumptions that ignore real management costs, taxes and seasonal demand, as well as choosing a location too far from the nearest airport, which over time can effectively discourage spontaneous short stays. Ignoring renovation costs when purchasing historic properties can be equally expensive: bringing an old townhouse up to modern European standards may consume a budget equal to almost half the purchase price of a new property. Finally, perhaps the most important mistake underlying all the others is choosing a property that does not match the owner’s actual lifestyle. Instead of looking for the most beautiful apartment on the market, it is worth first defining clearly what kind of lifestyle the property is expected to support. Once that is established, the remaining decisions become considerably easier.
9. Questions worth asking before signing the agreement
Before beginning the process of reviewing carefully selected properties, it is worth answering a few key questions honestly:
- What kind of daily rhythm, climate and social environment do I expect from my new property?
- How many weeks per year will I realistically spend there, and is that number likely to change significantly in five or ten years?
- Who other than me will use the property, and what will their needs be in the longer term?
- Would I prefer a low-maintenance apartment with security that can be locked up in five minutes, or a traditional villa with a garden requiring permanent external maintenance?
- Is the property intended solely for private relaxation and capital preservation, or should it also generate regular rental income?
- Does my budget include a contingency of approximately seven to fifteen percent of the property value to cover local transaction taxes and notary and legal costs?
- Who from my trusted network will guide me through the entire legal process in a foreign jurisdiction?
When purchasing premium property abroad, you are not paying solely for square metres. You are paying for the security of your wealth, reclaimed time and genuine peace of mind – and the process is best undertaken with a partner who takes responsibility for the search and negotiations, leaving the owner with what matters most about having a second home: simply enjoying it.
Author: Joanna Czapska CEO Partners International Premium Real Estate Market Expert
Sources
Portugal
- Official Portuguese Tax and Customs Authority – property purchase (IMT and Imposto do Selo):
https://info.portaldasfinancas.gov.pt/pt/apoio_ao_contribuinte/Cidadaos/Casa_e_propriedades/Compra_da_casa/Paginas/default.aspx
Spain
- Idealista – ITP rates by region:
https://www.idealista.com/en/news/legal-advice-in-spain/2026/07/28/819047-property-transfer-tax-in-spain-2026-rates-by-autonomous-community - Spaindinavia – VAT, AJD, IBI and purchase costs:
https://blog.spaindinavia.com/post/property-taxes-in-spain-the-complete-2026-guide-for-buyers-and-owners
Italy
- The Italian Lawyer – IMU and property taxes:
https://theitalianlawyer.com/imu-in-italy/ - ImmoAbroad – taxes when purchasing a second home:
https://www.immoabroad.com/italy/taxes-when-buying-a-second-home-in-italy-essential-guide
France
- Property Service Azur – droits de mutation and notary fees:
https://property-serviceazur.com/en/info/articles/frais-de-notaire-droits-de-mutation/ - PTI Returns – property owner taxes (IFI, taxe d’habitation):
https://www.ptireturns.com/blog/property-tax-france-ultimate-french-tax-guide/
Greece
- Avla Real Estate – taxes when purchasing property:
https://www.avlarealestate.com/en/post/greek-property-taxes-2026-the-complete-guide-for-foreign-investors - Terra Property – ENFIA:
https://terraproperty.gr/en/insights/enfia-property-tax-greece
Cyprus
- Philippou Law – transfer fees, VAT and other taxes:
https://philippoulaw.com/articles/complete-guide-to-property-taxes-in-cyprus-vat-transfer-fees-stamp-duty-and-capital-gains-for-individuals-and-companies
Dubai
- SBA Properties – Dubai Land Department (DLD):
https://sbaproperties.ae/off-plan/dld-fees-dubai/ - Homeland – no annual property tax:
https://www.homeland.ae/blogs/is-there-property-tax-in-dubai
Thailand
- Forbes & Partners – taxes and fees when purchasing property:
https://www.forbesandpartners.com/thailand-property-transfer-cost-tax-breakdown/
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