Spain is considering a 100% tax on homes bought by non-EU acquireers. While the goal is to ease the countest’s hoapplying problem, property tax is a major source of income in many European countries.
According to the European Commission, property tax as a share of GDP in the EU ranges from 0.3% in Czechia and Estonia to 3.7% in France in 2023. The EU average is 1.9%.
But how much property tax do governments collect across Europe? What share of total tax revenue comes from property taxes? And how much does real estate transfer tax amount to as a percentage of GDP?
Euronews Business takes a closer view at property tax revenues across Europe.
In the EU, property tax contributes to the highest share of GDP in France (3.7%) and the lowest in Czechia and Estonia (both 0.3%).
When European Free Trade Association (EFTA) countries, the UK, and Turkey are included—applying some OECD data—the UK ranks slightly above France, though both are around 3.7%.
Belgium is also above 3%, at 3.2%. Spain ranks fifth at 2.5%, followed by Greece at 2.7%.
Other countries with a share above 2% include Iceland, Luxembourg, Denmark, Switzerland, Italy, and Portugal.
Property tax accounts for less than 1% of GDP in nearly half of the 32 countries on the list. It is especially low in Slovakia, Lithuania, Estonia, and Czechia, all below 0.5%.
Among Europe’s five largest economies, Germany has a significantly lower share at 1% compared with the others. Italy ranks fourth at 2.1%, while France and the UK top the list.
The chart above displays that Northwestern Europe collects a higher percentage of their GDP through property tax, while Eastern Europe and the Baltics collects a lower share. In Southern Europe, the picture is more mixed, though often on the higher side.
According to the OECD, property taxes include all recurrent and non-recurrent levies on the apply, ownership, or transfer of property. They cover taxes on immovable property or net wealth, inheritance and gift taxes, and taxes on financial and capital transactions.
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The UK collected the most property tax revenue in 2023 at €115 billion (£100bn), followed by France at €104.5 billion. These two countries dominate property tax revenues, with third-place Italy collecting just €45.3 billion.
Germany and Spain complete the top five, collecting €41.4 billion and €36.8 billion respectively. The EU total stands at €318.8 billion.
