Taxing Real Estate (Ownership)

Do we need property taxes? What is their role? And what are the connections between them? This book answers more than these questions. It confirms that real estate is a traditional object of taxation, and property taxes are a significant revenue source and land policy instrument.

Why This Book?

Real estate is a traditional object of taxation. While the real property tax (recurrent property tax) is one of the most typical and oldest taxes worldwide, several other taxes (property transfer tax, wealth tax, capital gains tax, inheritance and gift taxes) are more or less connected with immovable property. Thirty-seven national reports prepared by 63 national reporters focus primarily on the recurrent property tax as a relatively stable tax compared with income taxes or VAT during crises. The other sections of the national reports are focused on property transfer taxation, wealth tax (recurrent or one-time/transaction-based), or specific types of improvement and betterment taxes. The national reports also provide basic information about the specifics of inheritance and gift taxation and capital gains tax, including the associated reporting obligations. Each national report summarizes current challenges and planned future developments in real estate taxation and regulation.

The thematic reports explain why property taxes are such a significant revenue source and land policy instrument, and what the challenges and prospects are in property taxation, also in developing countries. An efficient system of property taxation is impossible without proper valuation. The environmental aspects of the taxation of real estate must not be omitted. The summarizing general report compares the legal regulations connected with the property taxation in the 37 countries, summarizes the best examples, and makes recommendations for effective and efficient property tax regulation.