Estonia has one of the lowest property taxes in Europe
Last Updated on Friday, 25 May 2012 01:37 Friday, 25 May 2012 01:35
Estonia is one of the EU nations with the lowest rate of property taxation, new figures from Eurostat show.
The organisation revealed that in 2010, just one per cent of the country's total revenues from taxation came from the real estate sector, accounting for €51 million (£41.2 million).
According to Eurostat, Estonia utilises recurrent property taxes, rather than generating income from charges on transactions. As a result, the dip in performance of the Estonian real estate market between 2006 and 2009 did not adversely affect the nation's budget.
Meanwhile, "recurrent tax revenue held up well and even increased in that period, highlighting the stability of this tax", the statistics body added.
Understanding tax obligations when buying a home overseas is important, with marketing manager at Expat Focus Lindsay de Feliz recently stressing investors need to be clear on this point, as well as any laws relating to inheritance or legislation that only applies to foreigners.