How the Property Tax works in 27 countries of the world

From the paper by Ignacio Lagarda Lagarda, the graph shows the relation of the Property Tax to the gross domestic product in Latin America.

Property tax cadastre

Contextualizing Mexico with regard to the world, we see that this type of tax is not really so representative when compared to the rest of the world. We see that Costa Rica, Panama, Bolivia, El Salvador and Chile are above, in values similar to those of Slovakia, Czech Republic, Austria, Hungary, Turkey, Germany, Norway, Portugal, Poland and Finland. Uruguay, Paraguay and Argentina compare to Belgium, Ireland, Denmark, Sweden and Greece. Questionable if we consider that the GDP of many of these countries does not have equilibrium with the index of gini and therefore presumable cause of social inequity.

Property tax cadastre

And for general culture, it is interesting to see the following table which summarizes how the Property Tax works in 27 countries, of which 62% is charged by central government and 48% by local governments or municipalities.

Country

Condition of Property Tax

Canada

Most municipalities levy taxes on real estate at variable rates, including land, commercial buildings and residential property. Municipalities also charge taxes on improvements to the premises.

United States

Jurisdictions below the state level usually impose property taxes on real estate owners. Some tangible (and other intangible) properties are also priced in many states. The valuation is usually based on a percentage of the commercial value. Property taxes are deductible for income tax.

Russia

Landowners must pay a land tax calculated at a pre-established value. The tax rate is fixed in rubles and is relatively insignificant.

Poland

The real estate tax in Poland is charged to individuals and economic entities, including state-owned enterprises and joint ventures. The tax is generated from the value of land and buildings, not used in relation to agriculture. Tax rates vary by type of property. The maximum rates are: For apartment buildings, PLN 0.18 per square meter, For commercial buildings used for commercial purposes. PLN 6.63 per square meter, For other buildings, PLN 2.21 per square meter, For constructed plots, 2% of its value, For land used for commercial purposes, PLN 0.22 per square meter.

Bulgaria

All property owners in Bulgaria are subject to construction tax, the tax base is the value determined by the government. Rates vary between 0.2% and 0.6%. The tax must be paid quarterly to the municipalities.

Slovakia

The property tax is levied on property owners, and the tax base takes into account both land and buildings. Rates depend on the type and quality of the land, their size and value Almost all residential buildings are subject to property tax. Rates depend on the type of building, and its use. Numerous exceptions apply.

Czech Republic

Landowners are subject to the tax. Rates vary according to land use (in case of agricultural land), and in their area and type, (in the case of other lands). Building owners are subject to building tax. Rates vary depending on floor space and building use.

Romania

The property tax on buildings is annual, and is calculated at 1.5% of the value of the building. The property tax on land is also annual, and is calculated between an 15 L and 120 L per square meter. The property tax on agricultural land varies from L 14,000 to L 45,000 per hectare, depending on the land classification.

Slovenia

The property tax is levied on the value of buildings, as determined by the government. Progressive rates apply, not greater than 1.5%. Some constructions are exempt. The property tax also applies to boats.

Hungary

The tax is charged to the owners of all types of constructions. The base of the tax can be the useful area of floor, or the commercial value of the property, which decides the municipality. There is a â € œTax on undeveloped propertyâ €, which applies to all plots of land likely to be built. The maximum rate of this tax is HUF 100 per square meter.

Australia

The land tax is an annual tax payable by all landowners in each state, except those in the Australian Capital Territory. In each state provides a complete or partial remission of the tax according to whether the property is the place of residence of the taxpayer. Tax rates vary among states.

Japan

Individuals and real estate owners located in Japan are subject to a property tax called "Value Value Tax". This tax is 0.3%. The tax base is usually the 70% to 80% of the commercial value. Some types of property are exempt from this tax, such as land used by individuals for their own residence, as long as the total area does not exceed 1,000 square meters.

Malaysia

The property tax in Malaysia is called â € œReal Property Gains Taxâ €. This tax is levied at decreasing rates from 20% to 5%, depending on the period involving capital gains or losses are considered against tax on profits obtained in the current year or future years, except in the Cases of stock provisions in a real estate company. A Malaysian individual can request a tax forgiveness for the use of the property as a residence. A remission of RM 5,000 or 10% of chargeable profits, whichever is greater, is earned by all individuals without a restriction other than maintaining their status as Malaysian citizens.

Singapore

This tax is called â € œProperty Taxâ €. This tax is annual, and the applicable rate is 4% for residences occupied by the owner, and 13% for all other purposes.

China

The only thing we know is that taxes are charged on real estate and on the value of land.

NZ

Local tax authorities charge real estate taxes.

India

The municipalities charge the property tax.

Thailand

This tax is called â € œProperty and Land Taxesâ €. Landowners or buildings in designated areas may be subject to annual taxes either under the Local Development Tax Act of 1965 and the Tax Act of 1965. The local development tax is based on the assessed value (sic) of the land. The annual fee is 12.5% of the appraisal of property income.

Peru

The property tax is based on official values, and is charged to legal and individual entities that own real or urban real estate. The tax is charged on the value added of all properties subject to payment. The ranges are .2% in the first fifteen units of tax, .6% for the sixteen to sixty units of the tax, and 1% to those who exceed this amount.

Guyana

In Guyana property tax is called Property Tax, and is an annual tax charged on the "net property" at the end of the year. Net property is the amount by which the total value of any person's property exceeds the total value of all debts held by that person. Property includes all movable and immovable property, rights of any kind, personal effects (located in Guyana or anywhere), and gains from the sale of property or money or investments representing such gains. Several debts are excluded in the calculation of net property, and the number of deductions can be made from the price of the property when that price forms the basis of the tax. In general terms, the price paid is used in respect of property acquired on or after 1 in January of 1991, while the market value is used in relation to properties acquired prior to that date. The rates to property tax for companies are the 0% to the first G $ 500,00, 0.5% to the following G $ 5 million, and .075% to any other amount subject to the tax. Tax rates for individuals are 0% for the first G $ 5 million, 0.5% for the next G $ 5 million, and .075% for any other taxable amount.

Venezuela

The real property tax is based on the value of the property, according to the appraisal by the authority concerned. The tax usually around the 0.1% of the appraisal. This tax is annual, but usually is not paid until a property is sold.

Belize

Several fees are imposed by municipal authorities in cities and towns to residences. The tax is also generated by real estate outside the urban boundaries. The tax is around 1%.

Costa Rica

The property tax is called Territorial Tax, and is charged according to the declared or appraised value of land and permanent constructions, structures and facilities, including machinery and equipment that forms part of the constructions. The tax must be paid quarterly. Properties valued at less than 150,000 are exempt from tax

Panama

Real estate located in Panama, rustic or urban, is subject to the property tax called â € œPrivate Taxâ €. The owners must pay a rate according to a progressive scale that ranges from the 1.4% range of the value above 10,000 balboas, to 2.1% above the 75,000 balboas. The base is the value determined by the Earth Commission. There are a number of exceptions, including buildings and improvements used by charitable organizations or by public entities or for properties with a lower value than 10,000 balboas.

Ecuador

The municipalities collect an annual tax on the urban and rustic properties called "Taxes on urban and rural properties". The tax is based on the official value minus some deductions. Rates are relatively low. If a taxpayer has several properties, the values are grouped by municipality, and the rates are applied to the total value per municipality.

Guatemala

Real estate owners located in Guatemala must pay an annual property tax called â € œImpuesto único sobre inmueblesâ €. The applicable values are those found in the official property registry, although the tax authorities may review the values. Tax rates range from an 0% for the first Q 2,000, to the 0.9% at any value greater than Q 70,000.

Honduras The municipalities collect the tax for urban and rural real estate from the Cadastral value. The calculation of the Tax for urban real estate Considers the value of land and improvements; For rural properties is added the value of permanent crops. Once the cadastral value of the real estate has been calculated, a rate ranging from 2.50 to 3.50 Lempiras per thousand is applied, which can be gradually updated in values no greater than 0.50 per year. Additionally, the law allows each year 5 to be updated the cadastral values and a percentage agreed with the population.

The table is taken from the production of Miguel Ángel Montoya Martín del Campo in his publication "Comparative analysis of the property tax situation in different countries of the world".

One Reply to "How Property Tax Works in 27 Countries of the World"

  1. In Colombia, the tax on housing and all types of construction is called property tax, it is placed by the government at will and it is the largest theft that may exist, there are already thousands of owners, ESPECIALLY THOUGHTS who are unable to pay it , the one who does not pay it at the beginning of the year cannot be made at a discount of 10 percent and if it is not paid on time the government charges a default interest that is prohibited from charging to natural persons or any entity in the country but the government if it does and runs day by day, as an example I tell you that I could not pay a house tax for four years in the end I managed to pay off a loan and the interest was already the same value of the debt !!! Colombia is why the country occupies the fifth place in inequality and social injustice. In corruption on the part of the POLICIES, YOU MUST UNDERSTAND THE FIRST.

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