The 8–14% surprise
Advertised prices in Europe are not 'cash at the notary'. Transfer tax (ITP, IMT, overdrachtsbelasting, droits de mutation, Grunderwerbsteuer) is the bulk. Notary, land registry, and in Germany, Austria, Switzerland and Italy a buyer's agent can add another 3–5 points.
Own-use rates are often lower than investment rates. The Netherlands still prices a second home at the investment overdrachtsbelasting band, not the 2% primary-residence band. France is cheaper on a new-build than on an existing apartment. The tool shows the investment average; the note under the total tells you when that average lies.
- Belgium ≈14% · Spain ≈10–12% · Italy ≈14% (not prima casa) · Germany ≈12%
- Netherlands ≈11% investment · Portugal ≈8% · France ≈7% existing · Luxembourg ≈8%
- Switzerland ≈6% (Lex Koller may block you first) · Czechia ≈5% · Denmark ≈1.5%
Annual tax is not acquisition — but it hits cashflow
IBI, IMI, taxe foncière, OZB, IMU and council tax sit in the operating year, not at the notary. The second KPI is an orientation only: Spanish IBI is levied on cadastral value, UK council tax is a band, French taxe foncière varies by commune. Use it to stop treating property tax as 'someone else's problem'.
How Terrivio uses these numbers
Paste a listing URL and the full report applies this acquisition table (with country-specific bands where the pipeline has them), then divides NOI by price plus costs. That is why a portal's '5% yield' and Terrivio's net yield rarely match — the portal forgot the notary.
How to include buying costs in a holiday-home yield
- Take the asking price. Do not net off a hoped-for discount until it is in the reservation contract.
- Add the country acquisition %. Use the table above, then read the note for own-use, new-build and regional bands.
- That sum is cash-in. Net yield = NOI ÷ cash-in, not NOI ÷ asking price.
- Park annual property tax in opex. It does not belong in acquisition, but forgetting it inflates NOI.
Frequently asked questions
What is Kosten Koper?
Dutch for 'costs for the buyer': transfer tax, notary, kadaster and usual extras. Equivalent stacks exist in every European market — they are just named ITP, IMT, frais de notaire, Kaufnebenkosten.
Why is the Netherlands ~11% here but 2% on Funda?
Funda often assumes own-use (2% overdrachtsbelasting). A holiday home that is not your principal residence is generally the investment rate. The pipeline note spells this out.
Do I pay the buyer’s agent in Spain?
Usually the seller does. The table still shows 0% buyer-agent for ES/PT/FR/NL and a real % where the buyer typically pays (DE, AT, CH, IT).
Is this tax advice?
No. Bands move by region and by year. Use the breakdown to size the cheque, then confirm with a notary in that country.