With its picturesque towns, well-connected transport network and the high standard of living, Europe has become one of the best places to settle down in. This influx of expatriates from around the world has made the demand for luxe pieces of properties shoot up within the European Union. The number of real estate opportunities in EU has shot up because of this. But it might be difficult for a foreigner to make their way around all the taxes that have to be paid when buying property in the European Union.
The amount of tax to be paid for a piece of property in the European Union depends greatly on the value of the property being purchased. The tax amount also increases when the buildings and constructions on the piece of land are more.
Various Kinds of Taxes to Be Paid When Buying Property in the EU
Real estate opportunities in EU are constantly increasing because of the high demand from people outside the European Union.
- Italy is one of the most lucrative places to invest in property. To buy land in Italy, a stamp duty of anywhere between 2% and 9% of the cadastral value of the house must be paid. The land registry tax in Italy varies between a fixed amount of 50 Euros and 200 Euros depending on various factors like whether you purchase the house from a registered company in Italy. The mortgage tax or the Italian imposta ipotecaria also varies the same way. The amount of the VAT tax depends on whether you are buying a primary home or secondary home. Notary fee and the agency fee also must be taken into account when buying property in Italy.
- The land registry tax is commonly applied almost throughout the European Union. If you are buying property in Spain as a non-resident, then you have to pay a VAT of 10% and a stamp duty of 1.5%. This percentage may vary depending on whether the property is newly built, is sold by construction companies or is being resold by the previous owner. The previous owner has to pay capital gain tax when he/she has sold a piece of property in Spain. In Spain, VAT is also applied on any payment that is made to secure a property in your name.
- Because of the vast coastline and majestic beaches, Greece is a favourite within the expat community who are hoping to find real estate opportunities in EU. Property taxes in Greece are calculated depending on the value of the property. The tax rate is 0.10% for a property costing 200,000 Euros and it goes up to 1.10% when a property costs 2 million Euros. Non-EU residents must make an investment of 250,000 Euros to be eligible to buy a piece of property in Greece.
- If you are seeking real estate opportunities in EU, specifically in Portugal, then you have to be aware of how the taxes are calculated there. The amount of tax on a piece of property is calculated based on whether the property is in a rural location or an urban one.
To Conclude
If you are looking for real estate opportunities in EU, then you must be aware of how the property taxes are estimated in the country where you are seeking to make your purchases. You must also be aware of any other criteria that you must be fulfilling to own property in a nation located within the European Union so that your process of buying a property and relocating there is seamless.
