Telegram WhatsApp
CONTACT US
Real Estate Taxes:
A Guide by Country
Expert Insights
A comprehensive overview of real estate taxation in Portugal, UAE, Turkey, Malta, Greece, Cyprus, and Spain.
Investing in international properties requires a thorough understanding of local tax obligations.
Here, we break down the taxes on real estate in some of the most popular investment destinations.
“
Navigating international real estate taxes requires not just knowledge but strategic foresight. A well-informed investor doesn’t just pay taxes—they optimize their tax position to maximize returns.
Diana Alieva, Founder, Director of Digital Transformation
  • PORTUGAL
    Taxes on Purchase:
    • Municipal Property Transfer Tax (IMT):
    Ranges from 0% to 8%, depending on the property value and type.

    Rental Income Tax:
    • Residents:
    • Progressive rates from 14% to 48%, based on annual income.
    • Non-residents:
    • Fixed rate of 25%.

    Ownership Tax:
    • Annual Property Tax (IMI):
    0.3% to 0.5% for urban properties, 0.8% for rural properties, based on market value.

    Capital Gains Tax:
    • Residents are taxed on 50% of the profit from the sale.
    • Non-residents are taxed on the full capital gain at 28%.
    Stamp Duty:
    • Rate: 0.8% on purchase, gift, inheritance, or rental agreements.
  • United Arab Emirates (UAE)
    Taxes on Purchase:
    • Transfer Fee: 4% in Dubai, 2% in Abu Dhabi, based on the contract value.
    Municipal Rental Tax:
    • Paid by tenants along with utility bills.
    • Rates:
    • Dubai: 5% of annual rent.
    • Abu Dhabi: 3%.
    • Sharjah: 2%.
    Ownership Tax:
    • None: There are no annual property taxes in the UAE.
    Taxes on Sale:
    • Transfer fees are typically split between buyer and seller (e.g., 2% in Dubai, 1% in Abu Dhabi).

Request Consultation

By signing up, you agree to our Privacy Policy.
Request Consultation
Ask an Expert & Get a Personalized Consultation

  • TURKEY

    Taxes on Purchase:
    • Property Transfer Tax: 4% of cadastral value.
    • VAT: 1% to 18%, depending on property size and type.
    Rental Income Tax:
    • Included in the overall income tax, progressive rates from 15% to 40%.
    • Maintenance costs are deductible from taxable income.
    Ownership Tax:
    • Municipal Tax:
    • 0.1% to 0.3% annually, doubled in major cities.
    Luxury Tax:
    • Properties over $280,000 are taxed at 0.3% to 1% on the value exceeding this threshold.
    Capital Gains Tax:
    • Levied if the property is held for less than 5 years. Progressive rates: 15% to 35%.

  • MALTA

    Taxes on Purchase:
    • Stamp Duty: 5% of the property value (2% in Gozo).
    • Notary Fee: 1% to 2%, plus 18% VAT.
    Rental Income Tax:
    • Flat Rate: 15% on rental income.
    Ownership Tax:
    • No annual ownership tax, but land tax applies to long-term leased land: €40–€250 per year.
    Capital Gains Tax:
    • 8% of the selling price or market value, whichever is higher.

  • GREECE

    Taxes on Purchase:
    • Property Transfer Tax: 3.09% (includes local municipal tax).
    • Registration Fees: 0.48% to 0.68% of the property value.
    Rental Income Tax:
    • Progressive Rates:
    • Up to €12,000: 15%.
    • €12,001–€35,000: 35%.
    • Over €35,000: 45%.
    Ownership Tax:
    • National Property Tax (ENFIA): €2–€13 per square meter annually.
    • Municipal Tax (TAP): 0.025%–0.035% of the property value.
    Taxes on Sale:
    • None. The buyer bears all transaction costs.
  • CYPRUS
    Taxes on Purchase:
    • Land Registry Transfer Fees: 3%–8%, based on property value.
    • Stamp Duty: 0.15%–0.20%, exempt for the first €5,000 of the property value.
    Rental Income Tax:
    • Included in the overall income tax, with rates from 15% to 40%.
    Ownership Tax:
    • Abolished in 2017. However, an annual municipal tax of €85–€500 applies.
    Capital Gains Tax:
    • 20% on net profit.

  • SPAIN

    Property Tax (IBI):
    • Annual rates vary by location and property type, determined by local authorities.
    Capital Gains Tax:
    • Progressive Rates:
    • Up to €6,000: 19%.
    • €6,001–€50,000: 21%.
    • €50,001–€200,000: 23%.
    • Over €200,000: 26%.
    Inheritance and Gift Tax:
    • Rates depend on the region, property value, and degree of kinship. Some regions offer exemptions for close relatives.
    Wealth Tax:
    • Progressive rates from 0.2% to 2.5%, based on net asset value.
    Tax Declaration:
    • Residents must file annual returns between April and June.
“
Taxes are not just numbers; they shape the profitability of your investment. Understanding the tax landscape is the key to making real estate work for you,
not against you.
George Marsh, Director of Investment Strategies
Comparative Table
Real Estate Taxes by Country
Understanding the differences in real estate taxation is crucial for investors. Below is a comparative table summarizing key taxes across Portugal, UAE, Turkey, Malta, Greece, Cyprus, and Spain.
Plan
Your
Investment
Understanding real estate taxes is essential for maximizing your return on investment and planning your budget effectively. For tailored advice, consult with our tax specialists to ensure compliance and optimize your strategy.
Previous
Healthcare in France in 2024
This article provides a detailed overview of how the French healthcare system works, the advantages it offers, and the opportunities it opens for residents and visitors seeking treatment or planning to stay long-term.
Next
Investing in the Caribbean: Available Options in 2024
Citizenship-by-investment programs offer significant advantages for those seeking stability, new opportunities, and international prospects for themselves and their families.