International comparison
Taxes charged by states when property changes owner differ quite significantly from country to country. They can sometimes increase significantly the cost of the purchase. According to laws of some countries the buyer is responsible for paying this tax, in other countries the seller has to pay the transfer tax. But in the end it is alwayst the buyers money anyway.
High taxation of the property purchase can mainly be seen in the popular countries of southern Europe. One of the highest property transfer taxes exists in Greece, between 7 and 11 % from the price of the real estate. In Spain property purchase tax is between 6 and 7 %, in Italy you will have to pay from 3 to 7 percent of the sales price. There are high rates in France ( 5 % ) and Portugal (0 – 6 %). The highest of them all is the tax rate in Belgium where it can reach in certain cases even 12 %. Turkey and Finland charge 4 %.
Low rates exist in Czech Republic, Poland, and the United Kingdom. Moderate property transfer tax exists in Germany and Austria.
Annual property taxes charged by countries in most cases do not exceed 1 %. But taxation of the house of apartment that is not used for permanent residence can be higher. In some countries, like Portugal, they have introduced high taxes of houses that are owned by companies registered in the countries that the local authorities consider to be tax havens. In Portugaal they charge these companies 5 % annualy. That means that within 20 years the owner shall pay the price of the house once again. In comparison with other European countries the rates are high in Portugal, Germany and France. The lowest are in Czech Republic.
Property transfer tax and ownership cost – international comparison
| 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 | 3 | 1 | 2.5 - 5 | 0.01 |
Please have a look at concreete examples of real estate for sale on our website. You can contact us by writing to hronek@kensington.cz. You can also call telephone +420 724 981 800 or skype: kensington.praha.
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