Guide · Costs & taxes

Costs and taxes of a holiday home abroad

As of November 2026 · about 8 minutes' read

The purchase price is only the beginning. A holiday home abroad comes with buying costs, then taxes and upkeep every year, and when you sell or it is inherited, often taxes again, sometimes in two countries. This article compares France, Spain and Denmark and shows where the biggest items are.

Buying costs compared

Buying costs vary widely. In France and Spain they are higher than in Germany, in Denmark much lower.

Dark bar: lower bound. Lighter part: range depending on region, price and advice. As a percentage of the price, approximate.

• Denmark1–2%
• France7–8.5%
• Spain8–13%

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The purchase cost calculator works it out in euros for your price.

In all three countries you also pay for your own lawyer, translations and, if needed, financing. In France, many départements have raised the property transfer tax slightly since 2025. In Spain, a lot depends on the region: Andalusia and Madrid are at the lower end, Catalonia and Valencia higher.

One important difference in Denmark: Germans who do not live there are usually not allowed to buy a holiday home at all. So the low buying costs mainly matter to buyers who move to Denmark. More on this in the article Buying property in Denmark as a German.

Annual taxes on the property

France

• Taxe foncière: the property tax every owner pays. The amount depends on the municipality and the cadastral value, and for a holiday home it is often between a few hundred and more than 2,000 euros a year.
• Taxe d'habitation: abolished for main residences, but still due on second homes. In areas with a housing shortage, municipalities may add a surcharge of up to 60 per cent.
• Wealth tax IFI: only if your net property assets in France exceed 1.3 million euros.

Spain

• IBI: the municipal property tax, calculated on the cadastral value (“valor catastral”). There is usually also a refuse collection charge.
• Non-resident income tax (IRNR) on own use: Spain also taxes a house that is empty or used by you. It counts 1.1 or 2 per cent of the cadastral value as notional income, depending on when that value was last reviewed. As an EU citizen, you pay 19 per cent on this. You file the return (Modelo 210) every year.
• Wealth tax: may apply to non-residents if their net assets in Spain exceed 700,000 euros.

Denmark

• Grundskyld: the municipal land tax on the value of the land, at most 30 per mille.
• Ejendomsværdiskat: 0.51 per cent of the property value up to about 9.2 million kroner (DKK), 1.4 per cent above that. Since the 2024 reform, new valuations apply with a 20 per cent safety discount.

If you live in Germany, you pay no German tax on a holiday home abroad that you use yourself.

Letting: where rental income is taxed

If you let your holiday home, you pay tax on the income in the country where the house is. This is what Germany’s double taxation agreements (DBA) with France, Spain and Denmark provide.

• France: non-residents pay income tax on rental income, at least 20 per cent, and 30 per cent on higher income. Social charges come on top. If you are covered by social security in another EU country, you pay a reduced rate. Furnished holiday lets have their own rules and flat-rate allowances.
• Spain: 19 per cent for EU citizens on the profit, meaning income minus costs such as IBI, insurance, maintenance and depreciation. You also file this through Modelo 210, usually quarterly.
• Denmark: rental income from Danish property is taxable there, including for non-residents.

In Germany, this rental income is usually tax-free under the three agreements. Unlike many other types of income, the progression clause (Progressionsvorbehalt) usually does not apply here either: since 2009, rental income from property in the EU and the EEA no longer raises your German tax rate (§ 32b (1) sentence 2 EStG, the German Income Tax Act). You still have to declare it in your German tax return.

Before you let, also check the local rules. In many municipalities in France and Spain, you need a registration or licence for holiday letting, for example a regional tourist licence in Spain. More on this in the article Holiday home in Spain.

Selling: taxes on the gain

The gain on a sale is also taxed mainly by the country where the house is:

• France: 19 per cent income tax plus social charges on the gain. The longer you own the house, the bigger the reduction. After 22 years, no income tax is due, and after 30 years no social charges either.
• Spain: 19 per cent on the gain. The buyer withholds 3 per cent of the purchase price and pays it to the tax office as an advance payment. On top of this comes the municipal tax on the increase in land value (“plusvalía municipal”).
• Denmark: the gain from selling a house you lived in yourself is usually tax-free. In other cases it is taxed as income.

In Germany, private property is subject to a ten-year speculation period (Spekulationsfrist). Under the DBAs with France, Spain and Denmark, Germany usually exempts gains from property abroad. If you sell within ten years, however, the gain can raise the tax rate on your other income through the progression clause. Have this checked before you sell.

Inheritance and gifts

This is where you are most likely to be taxed twice. The country where the house is may usually charge inheritance tax. Germany also taxes the inheritance if the person who died or the heir lives in Germany.

• France and Denmark: Germany has agreements with both countries that also cover inheritance tax. Tax paid abroad is credited against German tax.
• Spain: there is no inheritance tax agreement. However, the Spanish tax can be credited against German tax under German law (§ 21 ErbStG, the German Inheritance Tax Act). In Spain, the tax depends on the region. Many regions give close relatives large reliefs.

The credit prevents double taxation, but not the higher of the two countries’ rates applying in the end. In France, inheritance tax for children above the tax-free allowance is up to 45 per cent, and 60 per cent for people who are not related. So plan for inheritance early, if necessary with a will that works under the law of both countries.

Insurance, management and upkeep

Besides taxes, there are regular costs that many people underestimate:

• Insurance: buildings and contents insurance from a local insurer is usually necessary, and in French flats in shared ownership it is even compulsory. Watch out for clauses on vacancy. Many policies pay out only partly for burglary or water damage if the house has been empty for a long time.
• Property management: if you are not there, you need someone to check on the house regularly, take in post and coordinate tradespeople. If you let, cleaning, key handover and looking after guests come on top. Agencies often charge 15 to 30 per cent of the rental income for this.
• Service charges: in complexes with a pool or garden in Spain (“comunidad”) and France (“copropriété”), you pay monthly contributions.
• Maintenance: as a rule of thumb, allow about 1 per cent of the house’s value a year, more for older houses and by the sea.
• Tax representative and adviser: for the annual returns abroad, most owners use a local tax adviser.

Add up all the items before you buy. For a typical holiday home, this quickly comes to several thousand euros a year, even if you only use it for a few weeks. You can read more about how the purchase works in the article Buying property abroad.

This article gives a general overview and is not a substitute for legal or tax advice. Tax rates, allowances and agreements change, and the rules depend on your individual case. Check them before you buy with a tax adviser who knows both countries. Official information is available from sources including impots.gouv.fr, the Agencia Tributaria and skat.dk.