Property tax policies vary across Europe. In some countries, such as the United Kingdom and France, property taxes account for a significant share of both GDP and total taxation, Euronews reports.
Spain is considering introducing a 100% tax on homes purchased by non-EU buyers. Although the aim is to alleviate the country's housing crisis, property taxes are a major source of revenue in a number of European countries.
According to the European Commission, the share of property taxes in GDP in EU countries ranges from 0.3% in the Czech Republic and Estonia to 3.7% in France in 2023. The EU average is 1.9%.
But how much property tax do governments across Europe collect? What share of total tax revenue does property tax represent? And what is the property transfer tax as a percentage of GDP?
What share of GDP does property tax represent?
In the EU, property tax represents the highest share of GDP in France (3.7%) and the lowest in the Czech Republic and Estonia (both 0.3%).
If we include the European Free Trade Association (EFTA) countries, the UK and Turkey – using some OECD data – the UK is slightly ahead of France, although both countries have a share of around 3.7%. Belgium is also above 3% with 3.2%. Spain is fifth with 2.5%, followed by Greece with 2.7%. Other countries with a share of more than 2% include Iceland, Luxembourg, Denmark, Switzerland, Italy and Portugal.
In almost half of the 32 countries on the list, property taxes represent less than 1% of GDP. Slovakia, Lithuania, Estonia and the Czech Republic are particularly low at less than 0.5%.
Among the five largest economies in Europe, Germany's share is significantly lower - 1%. Italy is fourth with 2.1%, with France and the United Kingdom topping the list.
Northwestern Europe collects a higher percentage of GDP from property taxes, while Eastern Europe and the Baltic countries collect a lower percentage. In Southern Europe, the picture is more mixed, although often higher.
According to the OECD, property taxes are recurring and one-off charges on the use, ownership or transfer of property. They include taxes on real estate or net wealth, inheritance and gift taxes, and taxes on financial and capital transactions.
Property tax revenue
The United Kingdom will collect the most property tax revenue in 2023 - €115 billion, followed by France with €104.5 billion. These two countries dominate property tax revenue, while Italy, in third place, collected only €45.3 billion.
Germany and Spain complete the top five, collecting €41.4 billion and €36.8 billion respectively. The total for the EU is €318.8 billion.
Belgium (€18.8 billion), Switzerland (€17.9 billion), the Netherlands (€14.4 billion) and Poland (€10.7 billion) will also collect over €10 billion in property tax revenue in 2023.
In 10 EU countries, property tax revenue is less than €1 billion, while in Estonia it is €110 million.
Property tax share of total taxation
The share of property taxes in total taxation varies significantly across Europe. According to the European Commission, in 2023 it ranged across the EU from 0.8% in Estonia and the Czech Republic to 8.4% in France. The EU average is 4.7%.
In addition to France, seven other EU countries have a property tax share above 5%: Belgium (7.4%), Greece (7%), Spain (6.7%), Portugal (5.9%), Luxembourg (5.7%), Italy (5.1%) and Denmark (5.1%).
In Germany, property taxes account for only 2.5% of total taxation.
Property transfer tax share in Europe
Property transfer taxes, expressed as a share of GDP, show the importance of property sales as a source of government revenue in some countries. These taxes apply to financial and capital transactions, including mainly purchases, sales and stamp duties.
According to the OECD, in 2023 Italy accounted for 1% of GDP, followed by Belgium, Portugal and Spain (all 0.8%).
In France, property transfer taxes accounted for 0.7% of GDP, in the UK 0.6% and in Germany 0.3%.
Spain's proposal to impose a 100% property tax on non-EU buyers is sparking debate across Europe. In May 2025, during a hearing in the European Parliament, José García Montalvo, professor of economics at the Pompeu Fabra University, in Barcelona, argues that housing tax policy may not be the most effective way to address the problem.
„Continuous policy changes and a lack of coordination between tax policy and housing measures undermine the effectiveness of tax policy, leading to unpredictable outcomes and persistent housing affordability issues, he said.
Diana Hourani, from the OECD's Personal and Wealth Taxation Department, noted that there is significant potential for OECD countries to improve the efficiency, fairness and revenue potential of different types of housing taxes.
„Improving these taxes could also alleviate upward pressure on house prices in many cases,“ Hourani added.
Detailed statistics on average property prices in Bulgaria by city and neighborhood can be found here at imot.bg