Euronews Business has analyzed in detail the property tax revenues in Europe.
Share of property tax in GDP
In the EU, property tax accounts for the highest share of GDP in France (3.7%) and the lowest in the Czech Republic and Estonia (both 0.3%). In the UK and Turkey, it reaches 3.7%, according to OECD data. In Belgium it is also above 3% – 3.2%. In Greece it is 2.8% and in Spain 2.5%. Other countries with a share above 2% include Iceland, Luxembourg, Denmark, Switzerland, Italy and Portugal. The real estate tax in Germany is 1%.
In almost half of the 32 countries, property tax is less than 1% of GDP. The figure is noticeably lower in Slovakia, Lithuania, Estonia and the Czech Republic – less than 0.5%.
Thus, Northwest Europe collects a larger percentage of GDP from property tax, while Eastern Europe and the Baltic States collect a smaller percentage. In Southern Europe, the picture is more mixed.
According to the OECD, property taxes include all periodic and one-off charges on the use, ownership or transfer of property, as well as taxes on net wealth, inheritance and gift, and financial and capital transactions.
Level of estate tax revenues
The UK generates the most revenue from property tax at €115 billion (£100 billion), followed by France at €104.5 billion. These two countries dominate property tax revenues, while Italy, in third place, collected just €45.3 billion.
Germany and Spain round out the top five, collecting €41.4 billion and €36.8 billion respectively. The EU’s total amount is €318.8 billion.
Ten EU countries have less than €1 billion in property tax revenue, with Estonia having €110 million.
