Estonians do not tax houses, but only the land on which they are built. Lithuanians do not tax houses worth less than €150,000, and the tax-free value increases by 30% for families with three or more children or for families with disabled children. How much property is taxed in Central and Eastern Europe, see in the text

Albania. If you don’t construct a building within the approved time frame, you pay a huge tax

Individuals and legal entities owning real estate in Albania pay real estate tax. The building tax is calculated as a percentage of the tax base, i.e. the value of the building, calculated in accordance with the methodology and procedures established by the Council of Ministers. Real estate tax is calculated as follows:

• 0.05% of the tax base of residential buildings;

• 0.2% of the tax base for buildings used for commercial purposes;

• 30% of the approved building area for buildings not built within the approved construction period.

Buildings owned by the state and local self-government bodies, as well as religious cults, are exempt from this tax. The tax on agricultural land is paid per hectare and varies depending on the territory in which the agricultural land is located.

The tax on agricultural land per hectare ranges from 700 ALL (about 6 EUR) to 5,600 ALL (48 EUR). The land tax is calculated for the area of ​​the land plot in square meters, which is owned or used. The fee varies depending on the location of the land plot and the purpose of its use.

Estonia: only the land is taxed, regardless of what is built on it

The only property tax in Estonia is the land tax, regardless of what you have built on it. The tax payers are the owners or, in certain circumstances, the users of the land. The tax is levied on the market value of the land, unless special exemptions apply.

The tax rate is set by the municipal council and can range from 0.1% to 2.5% of the taxable value of the land. Land under or immediately around a residential building is exempt from taxation. Estonia annually collects about 60 million euros from property (land) tax.

Lithuania. House tax also depends on the number of children

The annual tax rate for legal entities ranges from 0.5% to 3% of the taxable value of the building. Municipalities have the right to set the exact quota until July 1 of each year, which is valid for the following year. The taxable value is the average market value of the property, which is determined by the appraisal method and depends on the purpose of the property.

Owners may request an individual appraisal. The new taxable values ​​apply from 2021 and will be valid for 5 consecutive years.

Legal entities are required to submit an annual tax return on real estate owned or used to the tax authorities and to pay real estate tax by February 15 of the following year. Quarterly property tax installments must be paid by March 15, June 15 and September 15, respectively, if the annual tax exceeds €500.

Lithuanian and foreign persons who own residential real estate in Lithuania must pay real estate tax based on the taxable value of the real estate.

Bets:

• ​​0.5% for real estate worth 150,000 – 300,000 euros,

• 1% on property value of 300,000 – 500,000 euros and

• 2% for property value exceeding the threshold of EUR 500,000.

Amounts below €150,000 are tax-free. Also, the tax-free property value increases by 30% for families raising three or more children or for families with disabled children.

Families and/or individuals who own joint property must divide the taxable value of the property between them.

The tax is paid by December 15 of the current year.

Bulgaria: Bulgarians also pay a garbage tax, which is calculated annually by the municipality where the property is located

Owners of buildings and land located in Bulgaria are subject to annual tax. The tax rate ranges from 0.01% to 0.45%. It is determined at the municipal level and may change from year to year.

The object of taxation is the value calculated by the appraiser and the book value of the property. For buildings constructed before January 1, 2005, there are also a number of property tax incentives depending on the building’s energy performance certificate or the owner’s investment in renewable energy. The tax exemption can be extended up to 10 years.

Bulgarians also pay a garbage tax, which is calculated annually by the municipality where the property is located. Garbage rates can vary significantly from municipality to municipality.

Czech Republic – the tax is calculated by multiplying the area in square meters by the index (tax coefficient)

Real estate tax includes land tax and building tax. The real estate must be located in the Czech Republic and registered in the Czech Real Estate Register. This tax is calculated by multiplying the area in square meters by an index (tax factor), which varies depending on the type and location of the property.

Building tax rates depend on the number of floors, the primary activity for which the building is used, and the location. Municipalities also have full flexibility to increase or decrease the value of this tax factor.

Hungary – the maximum rate of construction tax can be 3.6% of the market value of the building

The maximum local building tax rate can be 3.6% of the market value of the building owned, or HUF 2,018 per square meter (approximately EUR 5.5 per square meter). The maximum rate of local land tax can be 3% of the market value of the land or HUF 367 per square meter of land (ie approximately EUR 1 per square meter).

The method of calculating the tax base is established by the local municipality. Property tax is paid in two installments – March 15 and September 15.

Poland – no more than PLN 24.84 per square meter for buildings used for commercial activities

The construction tax is set by the local administration.

The maximum real estate tax rates for 2021 cannot exceed:

• PLN 0.99 per square meter for land used for commercial activities;

• PLN 0.52 per square meter for other land;

• PLN 0.85 per square meter for housing;

• PLN 24.84 per square meter for buildings used for commercial activities;

• PLN 8.37 per square meter for other buildings;

• 2% of the construction cost

Serbia: The tax base is the market value of most buildings, and in some cases the book value.

The basis of property taxation is the market value of most buildings, and in some cases – the book value. Each municipality issues detailed rules for calculating property tax.

The property tax rate cannot exceed 0.4% and the amounts are paid by March 31 each year.

Data source: KPMG