Raw: [High property taxes levied not only on land but also on buildings and structures can discourage investment in infrastructure, which businesses would have to pay additional tax on.]
Skip to content
Early property taxA property tax is primarily levied on immovable property like land and buildings, as well as on tangible personal property that is movable, like vehicles and equipment. Property taxes are the single largest source of state and local revenue in the U.S. and help fund schools, roads, police, and other services.
es, first implemented in feudal times, were levied primarily on land and paid mostly by farmers. In modern times, property taxA tax is a mandatory payment or charge collected by local, state, and national governments from individuals or businesses to cover the costs of general government services, goods, and activities.
es are also levied on assets like real estate and paid on a recurrent basis by individuals or legal entities.
High property taxes levied not only on land but also on buildings and structures can discourage investment in infrastructure, which businesses would have to pay additional tax on. For this reason, businesses may choose to locate away from places with high property taxes
Two of the 30 European countries covered here, Liechtenstein and Malta, do not levy any recurrent taxes on property at all. Estonia is the sole country in this map to tax only land, meaning that its real property tax is the most efficient.
Of the 28 countries that levy property taxes, 23 allow businesses to deduct property or land taxes from corporate income, which mitigates the tax burden and encourages businesses to invest.
Luxembourg has the lowest property tax revenue as a share of its private capital stock, at 0.05 percent. Switzerland has the second-lowest share, at 0.08 percent, followed by the Czech Republic, at 0.09 percent. The highest property taxes as a share of the private capital stock occur in the United Kingdom (1.77 percent), Iceland (1.14 percent), and Greece (1.1 percent).
Real Property Taxes in Europe, as of 2021
CountryProperty Tax as Share of Private Capital StockReal Property or Land TaxReal Property or Land Taxes Deductible from Corporate Income Tax
Austria0.10%Tax on Real PropertyNo
Belgium0.60%Tax on Real Property (a)Yes
Bulgaria0.19%Tax on Real PropertyNo
Czech Republic0.09%Tax on Real PropertyYes
Denmark0.74%Tax on Real PropertyYes
Estonia0.11%Land TaxNo
Finland0.37%Tax on Real PropertyYes
France1.00%Tax on Real PropertyYes
Germany0.21%Tax on Real Property (b)Yes
Greece1.10%Tax on Real PropertyNo
Hungary0.26%Tax on Real PropertyNo
Iceland1.14%Tax on Real PropertyNo
Ireland0.22%Tax on Real PropertyYes
Italy0.62%Tax on Real PropertyNo
Latvia0.40%Tax on Real PropertyYes
Liechtenstein0.00%NoneNA
Lithuania0.22%Tax on Real PropertyYes
Luxembourg0.05%Tax on Real PropertyYes
Malta0.00%NoneNA
Netherlands0.55%Tax on Real PropertyYes
Norway0.20%Tax on Real PropertyYes
Poland0.90%Tax on Real PropertyYes
Portugal0.43%Tax on Real PropertyYes
Slovak Republic0.28%Tax on Real PropertyYes
Slovenia0.28%Tax on Real PropertyNo
Spain0.58%Tax on Real PropertyNo
Sweden0.34%Tax on Real PropertyYes
Switzerland0.08%Tax on Real PropertyYes
Turkey0.13%Tax on Real PropertyYes
United Kingdom1.77%Tax on Real PropertyYes
United States (for comparison)1.72%Tax on Real PropertyYes
Notes:
(a) Tax on the imputed rent of properties. Applies to machinery.
(b) Levied by state governments. Some states do not tax capital improvements.
Source: Calculations for “Property Tax as Share of Private Capital Stock” are based on 2021 data from OECD, “Global Revenue Statistics Database: 4100 Recurrent taxes on immovable property,” last updated August 2023, https://stats.oecd.org/Index.aspx?DataSetCode=RS_GBL; and IMF, “Investment and Capital Stock Dataset: Private capital stock (current cost),” https://www.imf.org/external/np/fad/publicinvestment/#5. For the type of property tax and whether it is deductible, see PwC, “Worldwide Tax Summaries,” https://taxsummaries.pwc.com/ (2023 data).
Stay informed on the tax policies impacting you.Subscribe to get insights from our trusted experts delivered straight to your inbox.
Subscribe
Share
Twitter
LinkedIn
Facebook
Email
Previous Versions
DataAugust 6, 2020October 16, 2023
Real Property Taxes in Europe
DataApril 4, 2019July 27, 2023
Real Property Taxes in Europe
Related Articles
DataApril 25, 2023July 28, 2023
Estate, Inheritance, and Gift Taxes in EuropeAs tempting as inheritance, estate, and gift taxes might look—especially when the OECD notes them as a way to reduce wealth inequality—their limited capacity to collect revenue and their negative impact on entrepreneurial activity, saving, and work should make policymakers consider their repeal instead of boosting them.
DataFebruary 28, 2023July 28, 2023
Top Personal Income Tax Rates in EuropeDenmark (55.9 percent), France (55.4 percent), and Austria (55 percent) have the highest top statutory personal income tax rates among European OECD countries.
DataJanuary 31, 2023July 28, 2023
2023 VAT Rates in EuropeThe EU countries with the highest standard VAT rates are Hungary (27 percent), Croatia, Denmark, and Sweden (all at 25 percent). Luxembourg levies the lowest standard VAT rate at 16 percent, followed by Malta (18 percent), Cyprus, Germany, and Romania (all at 19 percent).
TopicsBusiness Property TaxesBusiness Tax Expenditures, Credits, and DeductionsBusiness TaxesDataEuropean Union (EU)Individual and Consumption TaxesProperty Taxes
LocationsLocations:AustriaBelgiumCzech RepublicDenmarkEstoniaFinlandFranceGermanyGreeceHungaryIcelandIrelandItalyLatviaLithuaniaLuxembourgMexicoNetherlandsNorwayPolandPortugalSlovak RepublicSloveniaSpainSwedenSwitzerlandTurkeyUnited Kingdom
Authors
ExpertAlex MengdenGlobal Policy Analyst
Stay informed on the tax policies impacting you.
Subscribe
About
Since 1937, our principled research, insightful analysis, and engaged experts have informed smarter tax policy in the U.S. and internationally. For over 80 years, our mission has remained the same: to improve lives through tax policies that lead to greater economic growth and opportunity.
Donate
As a 501(c)(3) nonprofit, we depend on the generosity of individuals like you.
Careers
Contact Us
Tax Foundation
1325 G St NW, Suite 950
Washington, DC 20005
Copyright Tax Foundation 2023
Copyright Notice
Privacy Policy
