Property taxes for non-EU buyers in Europe: a country-by-country guide

Compare acquisition taxes, annual ownership fees, rental income rules, and capital gains across 8 European countries. Includes cost examples for €200k and €500k properties, a compliance timeline, and expert guidance for non-EU residents.

A second home in Europe generates four tax events: a one-time acquisition tax, annual ownership taxes, tax on rental income, and capital gains tax on sale. For a non-EU resident, each is governed by the country where the property sits, with reporting and taxation in your country of residence layered on top.

There is no single European property tax regime; the EU's Your Europe portal simply links out to national systems. This article maps the structure they share, covers eight markets (Spain, France, Italy, Portugal, Greece, Germany, the Netherlands and Belgium), works through acquisition costs at €200,000 and €500,000, and sets out a compliance timeline.

This guide covers property taxes only, not immigration status, health coverage or general income tax planning. Rates change with annual budget laws and municipal decisions, so treat every figure as a planning estimate and confirm it with the national tax administration (AEAT in Spain, impots.gouv.fr in France, Agenzia delle Entrate in Italy, Autoridade Tributária in Portugal, AADE in Greece, the relevant Land tax office in Germany, Belastingdienst in the Netherlands, SPF Finances in Belgium).

Four tax events define the cost of owning a second home abroad

The same four categories appear in nearly every European jurisdiction, though the names and bases differ.

Acquisition taxes are due once, at or shortly after signing. They include transfer tax (registration duty), stamp duty, and VAT on new builds. They're usually a percentage of the price or of an official value, and the buyer pays them.

Annual ownership taxes are levied on the owner of record on a fixed date. Examples are Spain's IBI, France's taxe foncière, Italy's IMU, Portugal's IMI and Greece's ENFIA. They're typically municipal or national bills calculated on an official valuation, not on what you paid.

Rental income tax applies if the property earns income. Non-residents are commonly taxed at a flat rate on gross rent, or through a filing that allows deductions, depending on the country and your residency status.

Capital gains tax applies on disposal. Non-resident treatment often differs from resident treatment, both in rate and in whether holding-period exemptions apply.

The calculation base matters more than the headline rate

A 1% tax is not comparable across countries until you know what it's 1% of. Three bases dominate:

• Market or contract price. Used for most transfer taxes (Spain's resale ITP, the Netherlands, Germany). Authorities can substitute a higher value if the declared price looks too low.
• Cadastral or assessed value. An administrative figure that often sits well below market price. Spain's valor catastral, Italy's rendita catastale, Portugal's VPT (valor patrimonial tributário) and Belgium's cadastral income all play this role in annual taxes.
• Deemed rental value. A notional income attributed to the owner even if the property sits empty. Spain taxes non-residents on imputed income, and Belgium taxes indexed cadastral income, for example.

Sweden illustrates a mixed base. According to Homestra's Sweden guide for international buyers, stamp duty on lagfart (title registration) is 1.5% of the purchase price or the assessed value, whichever is higher, plus a fixed registration fee of SEK 825. Registration typically takes 4 to 8 weeks. That "whichever is higher" mechanism is a common anti-undervaluation safeguard across Europe.

Second-home status removes the exemptions residents rely on

Primary-residence reliefs rarely apply to a second home owned by a non-resident. Italy's IMU, for instance, exempts a prime residence but charges second homes. Italy's registration tax drops to 2% for a primary residence and is 9% otherwise. Belgium's reduced registration rates in some regions depend on the buyer living in the home. Assume that if a tax break is tied to occupancy as a main home, you won't qualify.

Residency and nationality affect rates, but location decides jurisdiction

Three distinctions prevent most misunderstandings.

Tax residency is not citizenship. Residency is determined by where you live, where your center of economic interests is, and day-count tests. A US citizen living in Lisbon is a Portuguese tax resident (and still a US taxpayer). A Canadian living in Toronto owning a house in Provence is a non-resident of France.

The property's location controls local taxes. Annual property taxes and transfer taxes are tied to the asset. They apply whether you hold a French, American or Australian passport. A Swedish stamp duty bill is the same for a Swedish buyer and a Canadian one. As Homestra's Sweden guide notes, Sweden imposes no restrictions on foreign ownership, so EU and non-EU citizens buy residential property, land and vacation homes without special permits or residency requirements.

Residency status does change income-side treatment. This is where non-EU owners can be disadvantaged. Spain illustrates the gap well. EU/EEA residents can deduct expenses against rental income and pay 19% on the net. Non-EU residents pay 24% on gross rent with no deductions. Free-movement protections apply to EU/EEA residents, which is why the same property can generate different tax outcomes depending on where the owner lives.

Double taxation treaties reduce overlap, not paperwork

Where a treaty exists between the property country and your country of residence, it generally allocates taxing rights for income from immovable property to the country where the property is located. Your home country then relieves double taxation in one of two ways:

• Exemption method. The foreign-source income is excluded from home-country taxable income (sometimes with progression).
• Credit method. The income is taxed at home, and tax paid abroad is credited against the home liability, usually up to the home-country tax on that income.

A treaty doesn't remove reporting obligations. US citizens and residents report worldwide income, claim foreign tax credits (Form 1116), and may need to report foreign financial accounts (FBAR for aggregate balances over USD 10,000, and Form 8938 above certain thresholds). Canadian residents report foreign rental income, though personal-use property is excluded from the T1135 foreign property form. UK, Australian and other residents face their own rules. A cross-border CPA in your country of residence, not the local advisor, is the right person to confirm these.

Country-by-country summary of non-EU second-home taxes in eight markets

The table below emphasizes tax types and calculation bases. Rates are approximate and reflect commonly published figures; verify against current official sources before budgeting.

Spain

Resale purchases pay ITP, set by autonomous community (Madrid is among the lowest at 6%, Catalonia and Valencia are at 10%). New builds pay 10% VAT plus stamp duty (AJD) of roughly 0.5% to 1.5% depending on region. Annually, the municipality bills IBI based on cadastral value. Non-residents also file Modelo 210 for imputed income, calculated at 1.1% or 2% of cadastral value (the higher rate applies where values haven't been revised recently) and taxed at 24% for non-EU owners. Rented periods are reported as rental income instead, quarterly or by year-end filing.

France

Registration duties on resale run near 5.8% of price in most departments. Notary charges bring the total friction to roughly 7% to 8%. Two annual bills apply: taxe foncière (owner) and taxe d'habitation sur les résidences secondaires, with municipalities in high-demand areas allowed to add a surcharge. Non-resident rental income is filed on the French return, with social levies on top for owners outside EU/EEA social security schemes. Sales above €150,000 by non-EEA owners may require a fiscal representative. The IFI (wealth tax on real estate) applies to non-residents only when net French real estate exceeds €1.3 million.

Italy

The 9% registration tax is calculated on the cadastral-based value (prezzo-valore), which often yields a lower base than the market price. Annual IMU uses the cadastral income, multiplied by statutory coefficients, with a municipal rate. The owner pays both IMU and TARI. Rent can be taxed under cedolare secca (21%) on residential lettings, which many non-residents prefer for simplicity. Gains escape tax after five years of ownership.

Portugal

IMT rates climb with price, and a 0.8% stamp duty applies on the purchase price. IMI is billed annually by the Autoridade Tributária on VPT. AIMI is a supplementary wealth levy applying to higher-value holdings. Non-residents need a Portuguese NIF (tax number) and, in many cases, a fiscal representative. Non-residents are taxed at flat rates on rent and gains, which can exceed resident treatment, so a treaty credit at home matters.

Greece

Transfer tax applies to the higher of contract price and the state's objective value. ENFIA is billed annually and depends on location, age and property size, with a supplementary component that rises with total holdings. Check the current status of VAT on new builds and of the suspension on capital gains tax before modeling a sale.

Germany

Land-level transfer tax (3.5% in Bavaria through 6.5% in states such as North Rhine-Westphalia) is only part of acquisition cost. Notary and land registry fees add roughly 1.5% to 2%, and agent commissions are now shared between buyer and seller on residential sales. The 10-year speculation period is a distinctive feature: after ten years, private sale gains are generally free of tax.

Netherlands

A rate cut for non-owner-occupied homes took effect on January 1, 2026, taking the transfer tax from 10.4% to 8%. Non-residents owning Dutch property they don't live in report it under Box 3, where tax applies to a deemed return, not actual income. Reforms to move toward actual-return taxation are planned, so check the current regime.

Belgium

Belgium's high registration duties (about 12% to 12.5% in Flanders, Brussels and Wallonia on a second home) make it among the costliest acquisitions in this group. The annual levy is computed on indexed cadastral income, and regional rates differ. A non-resident files the Belgian non-resident return where required.

Worked examples: acquisition and first-year tax burden at €200,000 and €500,000

These models cover only the tax items, not agent commissions, legal fees or notary charges, apart from where noted. They assume resale properties.

Acquisition taxes only

The spread at €500,000 runs from €17,500 to €60,000. That gap is larger than the cost of many annual tax bills over a decade.

For reference, a Swedish purchase priced at SEK 2,000,000 would carry lagfart stamp duty of SEK 30,000 (1.5%) plus the SEK 825 fee, per Homestra's Sweden guide. Sweden's amounts are stated in SEK and aren't converted here.

First-year ownership in Spain, a detailed illustration

Assume cadastral value equals 50% of price (it varies widely, so replace this with the figure on your IBI receipt or the cadastral certificate).

Scenario A: self-use, no rental

• €200,000 property, cadastral €100,000. IBI at 0.4% to 1.1% gives €400 to €1,100. Imputed income at 1.1% is €1,100, taxed at 24%, which gives €264. At the 2% rate, it's €480. Total annual range: roughly €660 to €1,600.
• €500,000 property, cadastral €250,000. IBI runs €1,000 to €2,750. Imputed income tax at 1.1% is €660, or €1,200 at 2%. Total annual range: roughly €1,660 to €3,950.

Scenario B: modest rental

• €200,000 property rented for gross €8,000. Non-EU rate of 24% on gross gives €1,920, in addition to IBI.
• €500,000 property rented for gross €20,000. 24% on gross gives €4,800, in addition to IBI.

Because Spain doesn't allow non-EU residents to deduct expenses (agent fees, repairs, mortgage interest), a property that's thinly profitable can still generate a tax bill that exceeds its net income. An EU/EEA resident in the same position would pay 19% on net income. Imputed income applies only to the days the property isn't rented.

Plug in your own numbers: cadastral value, municipal IBI rate, regional transfer rate, and days let.

A payment timeline from due diligence to year-end

Before purchase

1. Obtain the local tax ID for non-residents (Spain's NIE, Portugal's NIF, Italy's codice fiscale, Greece's AFM, and equivalents).
2. Request the official valuation record (cadastral certificate, caderneta predial, visura catastale) and last year's annual tax receipt.
3. Confirm how the authority classifies the property: second home, tourist rental, or primary residence.
4. Ask whether the property is subject to VAT (new builds) or transfer tax (resales), and who pays.
5. Check your home country's rules on foreign property, foreign income and account reporting, and ask a cross-border CPA about treaty credits.

Homestra's listings, covering over 200,000 properties across Europe, and its local market insights help you compare asking prices and location context. The valuation record itself comes from the seller, agent or local registry.

At purchase

Transfer taxes and stamp duty are usually due at signing or within a short window (Spain files within 30 working days for ITP; Italy's taxes are paid via the notary at the deed). The notary often collects and remits them. Payment is generally by bank transfer, so you need funds in place beyond the deposit. As an example of deposit mechanics, Homestra's Sweden guide notes a deposit of about 10% on signing, commonly within 10 days, with the balance due at possession.

After purchase

• Calendar annual bills: IBI and IMU run on municipal schedules, and French taxe foncière is billed in autumn. Direct debit is available in many countries.
• File rental returns and withholdings on the local deadlines (Spain's quarterly Modelo 210 for rent, France's annual return, Portugal's annual IRS filing).
• Keep rental contracts, platform statements, agent invoices and bank evidence for at least the local limitation period.

On sale

Collect the original deed, the purchase tax receipts, documented improvement costs, and the sale deed. Request the local capital gains computation and file in the property country. Then claim a credit or exemption at home using proof of tax paid. Treaty relief usually requires official receipts, so request them when you file.

Sweden's regime shows why timing and classification matter. Under Homestra's Sweden guide, non-residents pay 22% on profit from a sale. Non-resident rental income falls under the SINK regime at 22.5% (proposed for 2026, reduced from 25%), and rental income below SEK 40,000 per year is tax-free. Rental and gains are separate regimes with separate rates and filings, and most European jurisdictions follow this separation.

Who handles what: notaries, lawyers, tax advisors and home-country CPAs

Each professional covers a different part of the process.

• Notary. Executes the deed, calculates and often remits transfer taxes. In civil law countries, the notary is a public officer, not your advocate.
• Property lawyer. Checks title, liens, planning status and contract risk.
• Local tax advisor. Handles non-resident filings, fiscal representation, withholding on sale, and the treaty documentation.
• Cross-border CPA at home. Handles reporting, foreign tax credits and the question of whether you owe tax in your country of residence on the foreign income.

Choose advisors with a record of working with non-resident owners, rental taxation and treaty relief claims in the specific country.

Questions to ask:

1. How will the authority classify the property, and what annual taxes follow from that?
2. Which filings are required each year, and what are the deadlines?
3. Is a fiscal representative or local tax ID mandatory for my situation?
4. Will rental income be taxed on gross or net, and which expenses can I claim?
5. What documentation will my home tax authority need to grant a credit or exemption?
6. What withholding applies on sale, and how do I recover any excess?

Planning around three variables before you buy

Three variables explain most of the cost differences: the region or municipality (transfer tax in Spain and Germany, annual rates in Italy), the calculation base (cadastral value versus price), and your residency status (Spain's 24% versus 19%). A purchase that looks cheaper by headline rate can cost more once annual bills, rental treatment and exit taxes are included.

Compile the figures for each property you shortlist, using official tax administration sources, and run the acquisition and first-year numbers from this article with your own cadastral values. Then confirm the home-country reporting position before signing, not after the first filing deadline passes.

Frequently asked questions

Which country in this guide is cheapest for a non-EU buyer?

On acquisition tax, Greece (about 3.09%) and Germany's lowest states (3.5% in Bavaria) are cheapest, while Belgium's roughly 12% to 12.5% registration duty is the most expensive: the worked examples in this article span €17,500 to €60,000 in tax at €500,000. Cheap entry does not guarantee cheap ownership, so also compare annual bills and exit rules before choosing.

Will I pay tax on the same income in two countries?

Treaties between the property country and your country of residence allocate taxing rights on property income to the country where the property sits. Your home country then relieves the overlap through the exemption or credit method, but reporting obligations remain: US owners may need Form 1116, FBAR and Form 8938, and Canadian residents report foreign rental income.

Do non-EU residents pay more tax than EU residents?

In several countries, yes. Spain charges non-EU residents 24% on gross rent with no deductions, while EU/EEA residents pay 19% on net income. Portugal taxes non-residents at 25% on rent and 28% on gains, and France adds social levies for owners outside EU/EEA social security schemes.

Can I deduct repairs, agent fees or mortgage interest from rental income tax?

It depends on the country. Spain allows no deductions for non-EU residents, Germany taxes rental income on a progressive scale with deductible expenses, and Italy's optional 21% cedolare secca trades deductions for a flat rate and simpler filing.

What do I owe each year on a property I don't rent out?

Annual ownership taxes apply regardless of use: IBI in Spain, IMU in Italy, taxe foncière in France, ENFIA in Greece, OZB in the Netherlands and the Belgian property levy. Some countries add a tax on notional income, such as Spain's imputed income for non-residents and Belgium's indexed cadastral income. In the Spanish illustration, an unrented €200,000 property runs roughly €660 to €1,600 per year.

Will I pay capital gains tax when I sell?

Usually, but the rules differ sharply. Spain takes 19% of the gain with about 3% of the price withheld by the buyer, Italy taxes only sales within five years of purchase, Germany within ten, and the Netherlands has no separate gains tax because property values feed Box 3. Greece's gains tax has been suspended in recent years, so verify the current status before modeling a sale.

Do I need a local tax ID or a fiscal representative?

A local tax ID is required everywhere to buy and file (Spain's NIE, Portugal's NIF, Italy's codice fiscale, Greece's AFM). A fiscal representative is additionally required or common in Portugal and in France for non-EEA sellers of properties above €150,000.