Most countries in the world impose some form of property tax, though the shape of that tax varies enormously. Among the 38 OECD member nations, property taxes accounted for an average of 5.1 percent of total tax revenue in 2023, ranging from under 1 percent in Czechia and Estonia to more than 11 percent in Korea and the United States.1OECD. Tax Revenue Trends 1965-2024: Revenue Statistics 2025 Countries with property tax generally use one of two structures: recurring annual levies that owners pay every year, or transactional taxes that only apply when property changes hands. A handful of jurisdictions skip the annual bill entirely and rely on one-time transfer charges instead.
How Recurring Property Taxes Are Calculated
Three methods dominate. The most common taxes property based on estimated market value, so a more valuable home generates a bigger bill. A second method taxes based on physical size in square meters, which is simpler to administer but ignores location. A third, used in places like France and Singapore, bases the tax on the estimated annual rent the property could earn on the open market.
Transactional taxes are a separate story. Stamp duties, registration fees, and transfer taxes are typically calculated as a percentage of the sale price. You pay once at closing and nothing more until the next sale. Some countries lean heavily on one approach; others use both.
North America
The United States relies on property taxes more heavily than almost any other developed country. Property taxes made up 11.3 percent of total U.S. tax revenue in 2023, the second-highest share in the OECD.1OECD. Tax Revenue Trends 1965-2024: Revenue Statistics 2025 Local and county governments set the rates and collect the money, and they use it primarily for public schools, police and fire services, and roads. Rates vary sharply from one jurisdiction to the next.
Canada also collects property taxes at the municipal level, but the role of those taxes in schools has shifted. Until 1994, roughly 40 percent of total Canadian school funding came from local property taxes collected by school boards. Since then, most provinces have moved education funding to provincial revenues, with only Manitoba still leaning meaningfully on local property taxes for schools.2Understanding Canadian Schools: An Introduction to Educational Administration. 5.3 How is Education Financed? Municipal property taxes still fund water, waste collection, and local infrastructure.
Europe
The United Kingdom uses Council Tax for residential property, based on the home’s capital value at a fixed historical date. In England, that reference date is April 1, 1991. In Wales, it’s April 1, 2003.3GOV.UK. How Domestic Properties Are Assessed for Council Tax Bands Each property is placed into a valuation band, and the local council sets the annual charge for each band. Property taxes made up 10.5 percent of total UK tax revenue in 2023, one of Europe’s highest shares.1OECD. Tax Revenue Trends 1965-2024: Revenue Statistics 2025
France imposes the Taxe Foncière on anyone who owns property as of January 1 each year, whether they live in it, rent it out, or leave it vacant. It applies to residential, commercial, and industrial buildings as well as undeveloped land. The tax uses a notional rental value rather than a sale price: the government estimates what the property could earn if leased, discounts that figure by 50 percent for maintenance and insurance, and then applies a local council rate. Final bills vary widely between municipalities.
Asia and the Pacific
Singapore uses property tax as a deliberate housing policy tool. The Inland Revenue Authority applies progressive rates to a property’s Annual Value, which it defines as the estimated gross annual rent the property could earn, excluding furniture and maintenance.4Inland Revenue Authority of Singapore. About Annual Value For owner-occupied homes, the first S$12,000 of Annual Value is taxed at zero percent, with rates climbing progressively to 32 percent for values above S$140,000.5Inland Revenue Authority of Singapore. Property Tax Rates and Sample Calculations Non-owner-occupied properties face higher rates at every tier. The gap is intentional and discourages speculative holding.
Japan levies a Fixed Asset Tax on land, buildings, and depreciable business assets, with values reassessed every three years.6World Bank. Property Tax Practices in Japan: The Case of Yokohama City The standard rate is 1.4 percent of assessed value, and many municipalities add a City Planning Tax of up to 0.3 percent. Assessed values typically run below actual market prices, so the effective burden is lower than the headline rate suggests. Property taxes made up 8.2 percent of Japan’s total tax revenue in 2023.1OECD. Tax Revenue Trends 1965-2024: Revenue Statistics 2025
Australia uses a split system. Local councils charge “rates” on properties in their area, functioning much like property taxes elsewhere. State and territory governments separately impose an annual land tax based on the unimproved value of land, applied everywhere except the Northern Territory.7Australian Government. Taxes on Your Property A primary residence is generally exempt from the state land tax, so that levy mostly hits investors, commercial owners, and people holding multiple properties. Each state also charges stamp duty at purchase.
The Middle East
Most Gulf states do not impose a traditional annual property tax, but ownership still carries costs. Saudi Arabia’s White Land Tax targets urban land hoarding: under 2025 amendments, it applies to undeveloped urban plots on a tiered system tied to development priority, with annual rates reaching up to 10 percent of land value in the highest-priority zones and starting at 2.5 percent in lower-priority areas.8Ministry of Municipalities and Housing. Implementing Regulations of the White Land Fees Law The United Arab Emirates has no conventional annual property tax either, but most emirates charge a municipality fee tied to rental value, and a substantial registration fee applies at purchase — around 4 percent of market value in Dubai. Bahrain, Qatar, Kuwait, and Oman similarly avoid recurring property taxes while charging various fees at purchase or during development.
Latin America and Africa
Brazil runs one of Latin America’s more significant property tax systems through the IPTU (Imposto Predial e Territorial Urbano), a municipal tax on urban real estate owners. Each city sets its own rates with no federal cap. Most municipalities charge around 1 percent of assessed value for developed property and 2 to 3 percent for undeveloped land. Brazil’s constitution also allows cities to raise rates progressively on vacant or underused land over time, discouraging speculative land banking in growing urban areas.
South Africa uses a municipal rates system in which local councils levy a cent-per-rand charge on the market value of property. Professional valuers assess each property, and councils set rates through a public participation process. The first R15,000 of market value on any residential property is exempt, and agricultural properties and public service infrastructure are rated at no more than 25 percent of the residential tariff.9Department of Cooperative Governance and Traditional Affairs. Municipal Property Rates Act No. 6 of 2004 General Guidelines Municipalities can categorize mixed-use properties by dominant use or by apportioning value, so neighboring cities may treat the same building differently.
Countries Without an Annual Property Tax
Some jurisdictions skip recurring levies entirely and collect through transactions instead. Monaco charges no annual property tax, no wealth tax, and no council tax.10The Official Website of the Principality of Monaco. Tax in Monaco It collects a registration duty when property is sold, typically 6.5 percent of the sale price. Buyers who meet certain transparency criteria pay a reduced 4.5 percent, while those who don’t face 7.5 percent.11MonEntreprise. Registration Duty
The Cayman Islands charge no annual property tax. Buyers pay a one-time stamp duty of 7.5 percent on the purchase price or market value, whichever is higher, with significant relief for first-time Caymanian buyers on developed residential property up to CI$550,000. Malta likewise has no recurring tax on ownership. Its system uses a transfer tax at sale, with rates from 2 to 10 percent depending on how long the seller held the property and whether it was a primary residence.12Malta Tax and Customs Administration. New Property Tax System – FAQ
No annual bill doesn’t mean cheap. Transaction-based systems front-load costs at purchase; the savings come from holding long-term without a yearly tax eating into returns. Ongoing maintenance, insurance, and utility charges continue regardless.
What U.S. Taxpayers Should Know About Foreign Property
Americans buying property abroad run into a rule that catches many people off guard: you cannot deduct foreign property taxes paid on a personal residence as an itemized deduction on Schedule A.13Internal Revenue Service. Publication 530 (2025), Tax Information for Homeowners Domestic state and local property taxes remain deductible up to the $40,000 SALT cap for most filers, but foreign real estate taxes are explicitly excluded.14Internal Revenue Service. Instructions for Schedule A (Form 1040) (2025) If you’re budgeting for a home in France or Japan and assuming you’ll offset the annual tax against your U.S. return, you won’t.
The rules shift when the property produces rental income. All worldwide rental income must be reported on Schedule E, and foreign property taxes paid on a rental are deductible as a business expense on that schedule, not subject to the SALT cap. If a foreign government also taxes the rental profits, you can claim a foreign tax credit on Form 1116 against your U.S. liability on that same income.
Foreign real estate itself doesn’t go on Form 8938, the form for specified foreign financial assets. A vacation home or rental you own directly is not a financial asset for these purposes. Hold that same real estate through a foreign corporation, partnership, or trust, though, and your interest in the entity is a reportable financial asset once your total specified foreign financial assets cross the applicable filing threshold.15Internal Revenue Service. Basic Questions and Answers on Form 8938 Direct ownership and entity ownership carry very different reporting obligations.