Money blog: Tourist taxes being imposed across Europe (and in UK) - here's how much they all are (2024)

By Ollie Cooper, Money team

Estate agent fees are one of the big expenses in selling a house - but rule changes and the rise of private sale websites have made it more common for people to go it alone.

But how easy is it - and what do you need to know? We spoke to industry experts to find out.

Firstly, what do estate agents do for their money?

An estate agent will typically charge in the range of 1%-3.5% of the sale price.

That means for the average house price (£284,691 from December) you could pay anywhere from £2,846 to £9,964 in commission fees.

"When you use an estate agent, their fee includes taking professional photographs, advertising your home, conducting property viewings, and negotiating a price on your behalf," says Jack Smithsonfrom the home ownership siteBetter.co.uk.

In addition, an estate agent will compile comprehensive details of your house, including room sizes and descriptions of fixtures and fittings.

"They will also provide a concise write-up about the local area, highlighting amenities, schools, and transportation links," Jack adds.

And they'll conduct checks on buyers for you (more on this later).

It sounds like a lot, but...

"Selling your home yourself can be a manageable process with a few key steps," Jack says.

Preparation

You should begin by thoroughly researching house prices in your area, using websites like Rightmove and Zoopla - but seek free valuations from local estate agents to ensure you have a realistic asking price in mind.

Next, you want to take high-quality photos of your house.

Jack advises using tutorials on YouTube to learn new shooting and editing techniques that can take you to the next level.

You then want to write down what makes your home unique.

"While browsing other listings for inspiration, take it a step further by emphasising what you love about living in your home and the surrounding area," Jack suggests.

"Whether it's the refreshing scent of the coastline or the tranquil sounds of village life, incorporating these details can help potential buyers visualise living there," he advises.

Like using YouTube for photography tips, you can use free tools such as ChatGPT and Grammarly if you need help with your writing, Jack says.

Advertising

This is probably the biggest perk of going through an established estate agent - your home is much more likely to be viewed because they will have an established audience and a market. But it's very possible to do it alone.

"When it comes to advertising your home, explore a variety of avenues including local newspapers and social media," Jack says.

"Consider using websites like Strike, which allow individuals to list their properties for free on platforms like Rightmove," he suggests.

Viewings

Once you've secured some viewings, you've got the opportunity to make it a bit more personal than estate agents ever could - a real advantage.

"Explain the reasons behind your decision to purchase the property, highlight its unique features, and share the aspects of your neighbourhood that make it a desirable place to live," Jack says.

The small things matter when showing people round - so try to take an objective look around before you bring anyone in.

Do the things you'd do normally - make sure it smells nice and it's clean and tidy.

"Lastly, it's worth knowing that you must legally provide potential buyers with a free Energy Performance Certificate (EPC)."

The sale itself

Perhaps the most daunting aspect is the physical exchange of contracts and money.

An estate agent would typically oversee the process of the initial offer acceptance to the transfer of keys to the new owner.

However, if you go it alone, you'll need to become the central point of contact - bridging the gap between your solicitor or conveyancer and the buyer and their legal representative.

"Once you've accepted an offer on your property, your first task is to draft what's called a memorandum of sale," Jack says.

This document is a written confirmation of your acceptance of the offer and details the agreed price along with any specific conditions you've both agreed to.

"It's then recommended to engage the services of a solicitor or conveyancer to ensure all legal obligations are met," Jack says (of course, you'll need to do this even if you have an estate agent).

The cost of hiring one typically ranges from a few hundred to over £1,000, depending on factors such as fixed fees, hourly rates, the complexity of the sale and additional costs like property searches or land registry fees.

"In the absence of an estate agent, you'll be responsible for keeping your buyer informed about the progress of the sale. This involves regular updates on the status of legal procedures and any relevant developments," Jack says, before adding that this can actually be a good thing.

"By taking on these responsibilities independently, you'll have greater control over the sale process. However, it will require you to be exceptionally organised, and you'll need to be very good at communicating too."

Any risks to be aware of?

Rita Patel, legal director at law firmBrowne Jacobson,tells us the biggest risk for people selling their properties without an estate agent is the lack of a vetting and verification process of the potential buyer.

Estate agents will verify the buyer's identity and check the buyer's proof and source of funds - without this, there's no way to assess the buyer is legitimate and can afford to buy.

"Whilst this process is something lawyers can help with, this is often at an additional cost, and you'll need to start from square one if there is an issue with a potential buyer's identification and/or financial eligibility," Rita says.

More generally, selling without an agent can extend the time it takes to sell.

"Zoopla suggests this timeframe is normally around 17-34 weeks, but with no one on hand to consistently promote and drive the property sale at all stages, going solo drags this process out," Rita says.

"Agents can also help mediate any potential breakdowns in communication between the buyer and seller - reducing the likelihood of having to go back to market and start again."

The advantages

Laura Owen-Brown, a PR manager from Gloucestershire, tells us she is set to sell her house without an estate agent in the near future.

"My disappointment with estate agents stems from their lack of familiarity with the properties they attempted to sell me when I was buying my current house," she says.

"They couldn't tell me about the details that truly matter, like the optimal times for sunlight in the garden, how much council tax I'd pay, what the roof was made of, the places I could walk my dog off lead or the impact of post-football match traffic on Sundays.

"These types of details can shape the experience of living in a house for years and are just as important as the square footage, EPC rating or how many bedrooms a property has," she adds.

She says the current "transactional" approach to selling houses feels "impersonal and outdated" to her.

"Yes, I'll have to handle more admin, but the savings in both money and time will make it worthwhile. Liaising with buyers and solicitors directly without a third party slowing everything down will mean I can be in control and have transparency throughout the process, especially during negotiations," she says.

All in all...

As Laura says, it's very much a case of whether you can stomach the admin and are happy to take the risks on background financial checks.

If you are aware of all the above and willing to take on the organisational burden, you could save yourself a serious chunk of cash.

Money blog: Tourist taxes being imposed across Europe (and in UK) - here's how much they all are (2024)

FAQs

What is the highest tourist tax in the world? ›

As of 2019, Bhutan charges $200 to $250 per visitor per day, considered one of the highest tourist taxes at the time. Originally people from India, Bangladesh, and the Maldives were exempt from part of the fee, but the country plans to increase fees for these visitors beginning in 2020.

Does the UK charge a tourist tax? ›

Can a tourist tax be levied in England? At present, in England, neither the central government nor local councils have the power to introduce a tourist tax. Primary legislation would be required to permit this. The UK Government stated on 18 September 2023 that it has no plans to do this.

What is the tourist tax in the US? ›

In the US and Europe, travelers most often deal with a tourist tax imposed on guests in lodging accommodations. It's usually a small amount, a few dollars per night. The accommodation provider collects the fee on the government's behalf. Notably, the tax is not included in the price and is always invoiced separately.

What happens if you don't pay tourist tax in Italy? ›

What happens if you don't pay tourist tax? You could face a fine of between €50 and €300.

What is the number one taxed country in the world? ›

1. Ivory Coast. The country with beach resorts, rainforests, and a French-colonial legacy levies a massive 60% personal income tax – the highest in the world.

Who pays the highest taxes in the world? ›

The highest personal income tax rates in 2021-23 were found in Ivory Coast (60%), Finland (56.95%), and Denmark (56.00%). Bhutan has the highest sales tax at 50%, followed by Hungary (27%), with Croatia, Denmark, Norway, and Sweden tied at 25%.

What is the new travel tax in the UK? ›

What are the rates? From 1 April 2024, they are as follows: UK domestic £7 or £14. Band A £13 or £26.

What is the tourist tax in Scotland? ›

The fee would be a percentage of the cost of overnight accommodation - minus commission the provider pays to any online booking service and room "add-ons" such food and drink. So, as a way of example in the bill , the Scottish government says a 1% levy on £200 for a room would result in a £2 tourist tax.

Do foreigners have to pay tax in UK? ›

UK residents have to pay tax on their UK and foreign gains. Non-residents have to pay tax on income, but usually only pay Capital Gains Tax either: on UK property or land. if they return to the UK.

What is tourist tax in France? ›

The amount of the tourist tax varies from **€0.65 (for 1- and 2-star campsites) to **€14.95 (for palaces) per person and per night. This amount must be displayed in the accommodation and must appear on the invoice issued but is not always included in the price of the accommodation.

What state has the highest tourist tax? ›

Honolulu, Hawaii

This Hawaiian destination charges the highest tourist tax in the U.S. The transient accommodations tax is 13.24%. The state tax in Hawaii is 10.25% and Honolulu recently added its own tax, which is an additional 3%.

What is the tourist tax in Florida? ›

The Tourist Development Tax (also referred to as tourist tax, bed tax or resort tax) is a 6% charge on the revenue from rentals of six months or less. This tax is in addition to the state sales tax (7% in Sarasota County). The state sales tax is sent to the Florida Department of Revenue .

Is Spain still charging tourist tax? ›

TOURIST taxes are common worldwide. In Spain, there are currently found in Catalonia and the Balearic Islands. Regional and municipal governments impose tourist taxes through accommodations at hotels and short-term rentals, which are typically collected by the property owner.

Do Italian citizens have to pay taxes on foreign income? ›

Tax resident individuals

Therefore, tax residents are also subject to taxation on foreign incomes (e.g. deriving from real estate owned outside of Italy, foreign dividends and interest, foreign compensation and director's fees, and other foreign income).

What is the Venice tourist tax? ›

Tax and technology attorney, professor, podcaster, writer. Venice recently started charging an entry fee — a so-called tourist tax — for day-trippers from April 25 date until July 14. The fee of five euros can be paid once, and it allows access for the day to Venice and the minor islands of the Venetian Lagoon.

Which country has the highest tourism revenue? ›

Revenue of travel and tourism market in selected countries worldwide 2023. Comparing the ten selected regions regarding the revenue in the travel & tourism market, the United States is leading the ranking (190.39 billion U.S. dollars) and is followed by China with 154.02 billion U.S. dollars.

What city has the highest hotel tax rate? ›

Cities with the highest hotel taxes
CityTotal tax rate
Houston17 percent
Indianapolis17
Columbus16.75
San Antonio16.75
11 more rows
Jun 4, 2014

Which country has the highest airport tax? ›

The countries with the highest airport taxes include the United States, the United Kingdom, Fiji, Australia, Germany, and Austria.

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