Europe hardens the real estate taxation: What does it mean for investors?
In recent years, several european countries have implemented new taxes and regulations which affect both residents and foreign investors in the real estate sector. The main objective is to stop the speculation, control of market prices and increase tax collection.
However, these measures can reduce the profitability of the investment and make some markets are less attractive. Let's look at what are the main changes.
Major tax changes in real estate in Europe
Tax hike on second homes in Spain and France
- Spain: Some communities have increased the IBI (Property Tax) and surcharges apply for empty homes. In addition, the Estate tax it affects the large holders of real estate.
- France: An increase in the tax on secondary dwellings in cities with high demand and higher rates of capital gains real estate.
Regulations concerning the rental of tourist and their impact on profitability
- Spain and Portugal: Restrictions on licensing of tourist rental in big cities like Barcelona, Madrid and Lisbon.
- Germany: Berlin has tightened up the regulations for the rental of temporary, limiting the profitability of platforms such as Airbnb.
New taxes on luxury properties and large estates
- Italy: We discuss the implementation of a tax on high value properties in certain regions.
- SpainReintroduction of the Solidarity tax on Large Fortunes, which affects owners with real estate assets elevated.
Countries with fiscal policies more favorable to the real estate investment
While some countries increase the tax burden, others maintain favourable conditions for investors:
- Portugal: Despite the changes in the Golden Visa, continues to offer tax benefits to residents not common.
- Greece: Low taxation on the purchase and possession of real estate.
- Andorra: Real estate taxes reduced and no estate tax.
Strategies to protect your investments in real estate in Europe
- To analyze the taxation of local before you buy a property.
- Diversify investments in countries with the lowest tax burden.
- Establish legal structures as societies to optimize taxation.
Do you want to know how to optimize your real estate investment in Europe? Contact us and we will help you to design the best tax strategy
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