Taxes on property differ quite significantly from country to country. Let us have a look at taxes connected with the sale and purchase of the real estate. High taxation prevails in south European countries. The highest property transfer taxes is in Greece, it is between 7 and 11 percent of the price of the real estate. In Spain real estate purchase tax is set between 7 and 8 percent. In Italy the tax burden represents from 3 to 7 percent of the sales price. High tay rates can also be found in Portugal (0 – 6 %) and France ( 5 - 8 % ). However high real estate transfer taxation is not only in southern Europe. In Belgium can this tax in certain cases reach even 12 %. Turkey and Finland charge 4 %. In Czech Republic and Slovakia no tax (zero) is paid when purchasing real estate.
As far as the annual property taxation is concerned it is in most cases below one percent. But taxation of the house or apartment that is not used for permanent residence can be higher. In Portugal, they have introduced high taxation of houses that are owned by companies registered in tax havens. They charge them 5 % annualy that is quite a burden. The rates are relatively high in Portugal, Germany and France. The lowest rates in EU are in Czech Republic.
Taxes and other cost associated with sale and ownership of real estate - by country
| Country | Transfer tax % | Notary & land register % | Broker % | Annual tax % |
|---|---|---|---|---|
| Belgium | 10 – 12 | 4 | 2.5 – 3 | 1.2 – 2.5 |
| Greece | 7.2 – 11.3 | 1.5 | 2 – 5 | 0.25 |
| Portugal | 0 – 6 | 1 – 2 | 3 – 5 | 1 |
| Spain | 6 – 7 | 0.5 – 2 | 2.5 – 3 | 0.5 – 1 |
| Italy | 3 -7 | 5 | 4 – 6 | 0.4 – 0.7 |
| Holland | 6 | 2.5 | 2 – 4 | 0.1 – 0.3 |
| France | 5 | 1.5 | 4 – 10 | 0.5 - 1.8 |
| Germany | 3.5 | 1.5 | 3 – 6 | 1 + 0.5 |
| Austria | 3.5 | 3 | 2 – 4 | 0.2 – 1 |
| Turkey | 4 | 1 | 6 | 0.1 |
| Britain | 0 – 4 | 2 | 2 - 3.5 | 0.5 |
| Finland | 4 | 0.1 | 3 – 5 | 0.5 – 1 |
| Czech republic | 4 | 1 | 2.5 - 5 | 0.01 |