Taxation of Immovable Property - UIPI Declaration on Excessive Property Taxation
Real Estate Property, the most conservative type of capital, holds always the interest of everyone, regardless of social status, cultural or economic level. Irrespective of the social structural changes, real estate property still remains esteemed and up to now it is collectively considered as the safest type of investment as well as the most acceptable sign of credibility.
The fact that real estate property permeates the total social and financial structure of a country makes all governments consider it as the most appropriate way to promote their financial, administrative, and social policies. The same practice is being followed exactly by municipalities and local governments, which are mostly classified in more than one level.
As such this particular practice indicates that real estate property remains always the most burdened type of capital or income on international level! In general, real estate property is the sole form of capital that can be surcharged with multiple, burdensome and sometimes practically confiscating taxation, for instance:
a. Any type of capital tax upon the ownership, the transaction or its value growth.
b. Income tax, which is often imposed rather at higher tax-rates on income deriving from immovable property, than on income from other sources.
c. Transfer tax, which is imposed on real estate property exclusively.
d. V.A.T., which can be imposed on the cost of building construction as well as on the transactions or on the income, deriving from renting.
e. Most of the municipal rates, that can be imposed for any reason.
f. Many other rates and contributions in favour of insurance organizations, national legal persons, even various churches.
The combined result of these surcharges upon real estate property cannot be represented accurately at global level due to the mass of disparate legislations and practices. Nevertheless, UIPI, has published a detailed report in 2003 titled "IMMOVALE PROPERTY IN EUROPE".
Now UIPI, through its Taxation Working Committee, is engaged in the conduct of a new comparative survey that would focus on the main taxation issues concerning real estate property.
Real estate property owners are heavily taxed in some European countries. In some of them there is simultaneously both a large number of taxes as well as high tax rates, making the total burden unbearable for the tax-payer. For more information please use the following links:
UIPI: IMMOVABLE PROPERTY IN EUROPE, Berlin, 2003 (To save instead of opening: Right click >> 'Save as')
EU COMMISSION DATABASE: TAXES IN EUROPE.
UIPI DECLARATION ON EXCESSIVE TAXATION UPON IMMOVABLE PROPERTY
UIPI BRUSSELS DECLARATION
on Excessive Taxation upon Immovable Property
Many countries with large sovereign debts have discussed and some have even adopted excessively high tax liabilities on the ownership of real estate property. During the meeting of its Executive Committee on 15 October 2011 in Brussels, presided over by its Chairman, Mr. Stratos Paradias of Greece, the International Union of Property Owners (UIPI) which represents the views and interests of over five million property and home owners across 25 European countries adopted the following declaration:
Politically: It is the duty of every citizen to contribute fairly to their national treasuries; in accordance with the reasonable distribution of taxable liabilities.
Fiscally: Real estate property has always been considered by governments and tax authorities as an easy and safe fiscal target; a ?sitting duck?. Today every Government must realise this is unsustainable. In a time of economic crisis, the ownership of real estate property does not produce any surplus value. Indeed in many countries, the income generated from property ownership has been dramatically diminished if not completely extinguished.
Socially: Property and building owners must not be victimised by excessive taxation on their real estate assets. Taxation should be related to the income generated from the ownership of property. It should not be linked to the mere ownership of an asset.
Financially: Unbearable taxation upon property investors, building owners and real estate development will inevitably lead to a decline in the building of new property and a reduction in economic activity relating to real estate. This is likely to push already fragile economies deeper into recession.
Human Rights: Imposing multiple taxes on the same real estate asset excessively penalise property owners and will lead to properties being confiscated. If such taxation makes property ownership untenable, this is a serious violation of the nationally and internationally recognised right to own property that must be respected in every country as a fundamental Human Right.
The President, Stratos Paradias, Athens, Greece
& the Executive Committe of UIPI