Главная » News » Property Taxes in Europe 2025: What Investors and Homebuyers Need to Know
Property Taxes in Europe 2025: What Investors and Homebuyers Need to Know
No time to read
If you’re planning to invest in real estate—whether it’s a villa, seaside apartment, or commercial property—it’s important to consider not only the purchase price and potential return, but also the tax obligations you’ll face after the purchase.
One of the key factors influencing investment performance is the annual property tax. Property owners are required to pay an annual property tax (also known as real estate tax or immovable property tax)—a levy based on the cadastral value of the property, its size, type of use, and other criteria. This is a mandatory charge collected by the state or local authorities from the property owner for the right to own and use the asset.
Tax rates and calculation mechanisms vary greatly from country to country—and sometimes even within different regions of the same country. In some European countries, the tax burden can be minimal, making property ownership more attractive. In others, high annual taxes can significantly increase operational costs and reduce overall profitability.
That’s why, when choosing a country for real estate investment, it’s crucial to analyze in advance: • the level and structure of annual property taxes; • the availability of tax benefits or exemptions for non-residents; • additional charges and costs associated with property ownership (e.g., utilities or municipal taxes).
Therefore, when assessing the investment appeal of a particular country or region, it’s important to take into account not only the tax burden at the time of purchase, but also the annual cost of ownership.
In this article, we’ll look at which European countries have the highest and lowest property taxes in 2025—and what that means for investors.
Which EU Countries Have No Annual Property Tax?
An annual property tax is levied in most countries, but there are several European Union member states where such a tax does not exist—making them particularly attractive to investors looking to reduce operating costs and increase net returns on their investments.
It is important to note that one-time taxes and fees may still apply when purchasing or selling real estate (such as stamp duty or capital gains tax), but there is no recurring annual tax on property ownership in these countries.
As of today, the following EU countries do not impose an annual property tax:
Cyprus
Cyprus officially abolished its annual property tax as of January 1, 2017. This means that property owners—both individuals and legal entities, regardless of tax residency—are exempt from paying a tax simply for owning real estate in Cyprus.
For investors, this translates to zero recurring fiscal charges on property ownership, which is especially beneficial when purchasing assets for long-term capital preservation or rental income.
Malta
Malta is another EU jurisdiction where no annual property tax is levied. Owners are not required to pay tax solely for holding real estate, regardless of its market value or purpose.
Why is this important for investors?
The absence of annual property tax allows investors to:
Reduce operational costs associated with maintaining the property
Increase net rental yields
Minimize long-term fiscal risks
Simplify tax planning for individuals and corporate entities
Property Taxes in EU Countries
We have selected the most popular countries for purchasing real estate in the European Union, and below you can find the annual property tax rates.
Please note that in most EU countries, this tax is levied at the municipal level, and the rate may vary depending on:
The cadastral or market value of the property
Location (region, municipality)
Property use (residential, commercial, primary or secondary residence)
Type of owner (individual or legal entity, resident or non-resident)
Spain
In Spain, the annual property tax is called Impuesto sobre Bienes Inmuebles (IBI). This is a mandatory tax levied by municipalities and applies to both residential and commercial properties. The tax obligation is a percentage of the taxable value of the property, depending on the type of property (i.e., rural or urban) and the municipality in which it is located. Annual property tax rates in Spain range from 0.4% to 1.3% of the cadastral value of the property. The cadastral value is calculated based on the size, year of construction, location, and other parameters.
For properties used as a primary residence, some municipalities may offer benefits or reduced rates, particularly for large families, pensioners, or individuals with disabilities. However, for foreigners purchasing property as an investment or holiday home, such benefits generally do not apply.
Portugal
The annual property tax in Portugal is called Imposto Municipal sobre Imóveis (IMI) and is also administered at the municipal level. It applies to all types of real estate and is calculated based on the assessed value of the property — Valor Patrimonial Tributário (VPT) — as determined by the tax authorities using a set formula.
The tax rate varies and ranges from 0.3% to 0.8%, depending on the municipality and type of property. Portuguese municipalities independently set their own property tax rates.
In addition, there are tax benefits available, including temporary exemptions (up to 3 years, with the possibility of extension) for properties undergoing renovation or located in historic areas.
Greece
In Greece, the annual property tax is called ENFIA (Ενιαίος Φόρος Ιδιοκτησίας Ακινήτων). ENFIA is calculated each year based on the information declared in the special tax form E9 (submitted through the taxpayer’s personal tax portal).
ENFIA consists of two components: • Basic tax – calculated depending on the type, size, year of construction, location zone, and other parameters; • Supplementary tax – applied to properties with a total value exceeding a certain threshold (typically for legal entities or high-value properties).
Rates range from 0.1% to 1.15%, and in some cases may be higher. According to the new Law No. 5162/2024, starting from 2025, tax reductions are provided for insured residential properties. If the property was insured for at least three months in the previous year and its taxable value does not exceed €500,000, a 20% ENFIA reduction applies. If the value exceeds this threshold, a 10% reduced rate is granted. If the property was insured for less than a year, the tax benefit is granted proportionally to the duration of insurance.
Additionally, in some municipalities, a tax called TAP (Τέλος Ακίνητης Περιουσίας) is levied – an annual fee usually ranging from 0.25% to 0.35%, paid through utility bills. Greece uses a zonal valuation system, under which tax coefficients are determined based on the cadastral value per square meter.
Italy
In Italy, the annual property tax is called IMU — Imposta Municipale Unica, which translates as “Unified Municipal Tax.” It applies to all types of property except for primary residences, unless the property falls under luxury categories (A1, A8, A9). The base rate is 0.86%, but each municipality has the right to lower it to 0% or increase it to a maximum of 1.06%.
The tax base is calculated based on the cadastral value of the property, multiplied by a fixed government coefficient (depending on the property category). Rental properties and real estate owned by non-residents are taxed in full. In some cases, a regional surcharge or additional levy may also apply, especially for commercial real estate or properties owned by companies.
France
In France, property owners are required to pay an annual tax called Taxe foncière sur les propriétés bâties (TFPB). This tax is calculated based on the cadastral value of the property, which is reviewed annually. As a result, the tax amount may vary each year depending on improvements, additions to the property, the installation of a pool, etc. Each municipality sets its own tax rate coefficient, so the effective rate can range from 0.2% to 1.5% or higher, depending on the region and the property’s use.
For primary residences (résidence principale), partial or full exemption from the tax is possible—such as for retirees or individuals with low income. However, for investment properties or non-primary use properties, the tax is applied in full and may reach up to 3% of the property’s market value annually. Additionally, in some cases, a vacancy tax (taxe sur les logements vacants) may also apply.
Important: All the above rates and features are current as of 2025. Real estate tax legislation in the EU is dynamic and may change depending on the fiscal policy of each country. It is strongly recommended to consult a legal and tax advisor in the chosen jurisdiction before purchasing property.
Comparative Table of Annual Property Tax in the EU
Country
Name of Tax
Tax Rate
Features and Exemptions
Cyprus
—
None
No annual property tax
Malta
—
None
No annual property tax
Spain
IBI (Impuesto sobre Bienes Inmuebles)
0.4% – 1.3%
Municipal tax, rate depends on region; exemptions for primary residence
Portugal
IMI (Imposto Municipal sobre Imóveis)
0.3% – 0.45% (up to 0.8% for certain properties)
Rate set by municipality; 3-year exemption possible during renovation
From 2025, up to 20% discount with insurance; higher tax for properties over €500,000
Italy
IMU (Imposta Municipale Unica)
0.86% (can range from 0% to 1.06%)
Not applied to primary residences; rate depends on municipality
France
TFPB (Taxe foncière)
0.2% – 1.5%
Exemptions for primary residences; tax increases with improvements (e.g., pool)
Choosing a country for real estate investment in Europe depends on many factors, including tax obligations. Therefore, it is essential to have a complete understanding of all aspects of the tax system in the selected country before making an investment.
Planning to invest in real estate abroad? We will help you select a jurisdiction with optimal tax conditions and complete the transaction safely. A consultation with an international tax lawyer is your first step toward a profitable investment!
In 2013, Anastasia Taran graduated with honors from the National University "Odessa Law Academy", earning a Master of Laws degree. She joined Feod Group in 2018 and has since gained extensive experience in international corporate, tax, and immigration law....
In 2013, Anastasia Taran graduated with honors from the National University "Odessa Law Academy", earning a Master of Laws degree. She joined Feod Group in 2018 and has since gained extensive experience in international corporate, tax, and immigration law.
Cyprus
Malta
