- Online marketplace Traum-Ferienwohnungen compares tax levies on real estate in the most popular vacation countries in Europe
- Tax paradise in terms of vacation property is Greece
- Levies highest in the Netherlands
Inflation and zero interest rates: Due to the current financial situation, dealing with investments is not easy for many. Yet investing in a holiday property abroad promises several advantages: The accommodation can be used by oneself to take a holiday and otherwise be rented out to holiday guests throughout the year. However, caution is advised especially regarding the ancillary costs of such an investment: While a certain share of the price has to be paid into the state coffers in the form of land transfer tax when buying, the house or flat owners have to pay ongoing tax levies such as municipal tax as well as income tax. We have found out in which of the most popular European holiday destinations the level of taxation is particularly favourable.
Low tax rate in Greece
According to the comparison, buying accommodation in Greece is doubly worthwhile: not only the sea, the sun and the picturesque nature can be enjoyed in the southern European country, but also the low tax rates. The real estate transfer tax in Greece is only three percent, eleven percent of the income has to be paid to the state. The investment in a holiday home is similarly favourable in Poland, where homeowners pay a real estate transfer tax of two percent and an income tax of 13.5 percent. There is no municipal tax in either country.
You can find out how high the taxes are in the holiday regions here:
As you can see in the table, investing in a holiday home in the Netherlands will be expensive: The real estate transfer tax and the municipal tax are comparatively low at two and three percent respectively. However, at 37.1 percent, the level of income tax is tops in the country comparison and three times as high as in Greece. Regarding the Danish holiday regions, buyers also have to pay a lot of extra costs with a municipal tax of 25.1 percent. The real estate transfer tax in Denmark is three percent and the income tax 12.1 percent.
About the research
The percentage level of the tax data refers to the official data of the respective state offices. The lower tax rate was used for the calculation in each case. For the determination of the most popular holiday regions in Europe, the search queries on dream holiday homes were evaluated. These are Porec & Pula (Croatia), Swinemünde (Poland), Julianadorp & Callantsoog (Netherlands), Pitsidia (Greece), Tignale & Tremosine sul Garda (Italy), Aabenraa (Denmark), Gränna (Sweden), Vonyarcvashegy (Hungary), De Haan (Belgium), Costa Calma & Alcudia (Spain), La Croix-Valmer & Les Issambres (France), Locarno (Switzerland), Riezlern & Zell am Ziller (Austria) and Carvoeiro (Portugal).