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Overseas Rental Income Calculator

Convert rental income earned abroad into your own currency after local costs, exchange margins and transfer fees on every payment.

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Net annual income in your currency
Lost to the exchange margin
Transfer fees for the year
Average per month

Rental income earned in another currency loses value twice on the way home: once to the margin built into the exchange rate, and again to a fee on every transfer. Neither appears in the rent figure, and both recur every month for as long as you own the property.

Transferring less often reduces the fees but increases exposure to the rate moving. This shows both costs so the frequency can be chosen deliberately.

The calculation

Net local income is rent less local costs across the year. Converted at the mid-market rate it gives a theoretical amount, from which the exchange margin is deducted, and then a fixed fee for each transfer you make.

Worked example

Rent of 1,200 a month with 300 of local costs nets 10,800 a year locally. At a mid-market rate of 1.08 that is 11,664, but a 2% margin removes 233 and twelve transfers at 15 each remove 180, leaving about 11,251 — roughly 938 a month.

Fewer, larger transfers, or a local account

Moving to four transfers a year saves 120 in fees here, at the cost of holding the money in a currency that may move. Many overseas owners keep a local account and transfer only what they need, which also covers local costs without converting twice.

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Frequently asked questions

How much is a typical exchange margin?

High-street banks commonly take two to four percent through the rate, while specialist providers are often a fraction of that. On a recurring income the difference compounds year after year, so it is worth switching once.

Should I transfer monthly or in batches?

Batching saves fees and increases exposure to rate movements. Where the income is not needed immediately, quarterly transfers are a reasonable middle ground; where it services a mortgage at home, monthly certainty may be worth the fees.

What about tax on overseas rental income?

It is usually taxable in the country where the property is and may also be reportable where you live, with relief under a double tax treaty if one exists. This is genuinely complex and worth professional advice in both countries.