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Where are the highest and lowest property taxes in Europe?

2026-07-14 09:08:00, Kosova & Bota CNA

Where are the highest and lowest property taxes in Europe?

Property owners in Europe face a range of tax obligations, from the moment they buy a property to the moment they sell it. According to Global Property Guide, tax rates vary significantly from country to country, directly impacting the cost of investing in real estate.

There are four main taxes that burden owners: property purchase tax, annual property tax, rental income tax, and capital gains tax in the event of sale.

Belgium is among the countries with the highest tax burden. Property buyers can pay up to 12.5% ??of the property value in transfer tax, while the country also ranks among the most expensive for rental income tax and property-related taxes.

In contrast, Estonia and the Czech Republic do not apply a property transfer tax upon purchase, while in Lithuania this tax is around 0.4% of the property value.

When it comes to rental income, Denmark applies the highest rates to landlords, with taxes reaching over 42% for modest incomes and over 43% for higher incomes. For higher rents, Belgium leads with a rate reaching around 47%, while Germany and Greece apply taxes of up to 41%.

On the other hand, Cyprus does not impose tax on initial levels of rental income, while Luxembourg applies very low rates.

Annual property tax also varies considerably. In the United Kingdom, owners of a home worth around €300,000 typically pay between €2,000 and €3,200 per year. In France and Spain, this tax typically ranges from €700 to €1,800, while in Cyprus and Malta there is no annual property tax.

For properties sold at a profit, Denmark applies one of the highest capital gains tax rates, which can reach up to 52%. In contrast, Germany exempts gains from tax if the property has been held for more than ten years, while Malta does not tax the gain but applies a flat rate on the sale price.

According to the analysis, Belgium remains the country with the highest overall fiscal burden for real estate owners in Europe, while Cyprus and Malta are considered among the most favorable destinations for investors, thanks to the lack of an annual property tax and lighter tax policies./ CNA





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