What are countries with no property tax?

Croatia

Croatia is one of the countries with no property tax imposed on real estate. However, their tax system imposes a Real Estate Transfer Tax (RETT) on property transfers. A “transfer” includes any change in ownership, such as sales, exchanges, gifts, inheritance, company liquidation, or other methods of transferring real estate. The Real Estate Transfer Tax (RETT) is set at 3% but does not apply when Value Added Tax (VAT) is payable on the transaction. A 25% VAT is charged for registered VAT taxpayers when selling construction land and buildings before their first use or if less than two years have passed since their initial occupancy or use.

Liechtenstein

If you are considering purchasing property abroad, consider buying in Liechtenstein, as it is one of the countries with no property taxes. The only tax imposed on real estate in the country is the real estate profit tax, which is applied to capital gains from property sales, calculated as the difference between the selling price and the original cost, including improvements. The tax rate ranges from 3% to 24% based on the taxable gain. Also, selling a majority stake in a real estate company may trigger this tax.

Monaco

Monaco’s real estate market is open to residents and foreign investors, with no restrictions on foreign ownership, making it easy to buy or rent property. Monaco is a European country with no property taxes; however, rental properties are subject to a 1% tax on annual rent plus additional applicable fees. Additionally, Monaco imposes a Stamp Duty on documents used for civil and legal matters, including those for real estate transfer. The tax rate is 6.5% on real estate sales but is reduced to 4.5% if the property is registered under an individual’s name.

Malta

Many may not know that Malta is one of the few countries with no property taxes. Although Malta does not impose an annual tax on real estate properties, purchasing property involves several fees, including Stamp Duty, land tax, and purchase tax. The Stamp Duty is set at 5% of the total purchase price stated in the sale contract. Additionally, if the property is on land leased for a long term, the buyer must pay a land tax known as Ground Rent, which ranges from €40 to €250. Foreign investors looking to buy real estate in Malta must obtain an Acquisition of Immovable Property (AIP) permit, which costs €233.

Fiji

Fiji is on the list of countries without property taxes. This country, located in Oceania, generally does not levy property, estate, inheritance, or gift taxes. However, A 10% Capital Gains Tax (CGT) applies to profits from selling capital assets, including land and buildings. Residents must pay CGT on local and foreign assets, with a credit available for foreign taxes paid on those disposals. Non-residents are only taxed on gains from assets located in Fiji.

Cook Islands

The Cook Islands, a tropical archipelago in the South Pacific, is a place with no property taxes. The Cook Islands have become an appealing choice for real estate investors due to this reason. Additionally, this country does not impose capital gains tax, inheritance tax, Stamp Duty, capital transfer tax, gift tax, or wealth tax. The country’s status as a tax-friendly jurisdiction aims to attract foreign investment and foster economic growth.

Cayman Islands

One of the standout benefits of owning property in the Cayman Islands is the lack of property taxes. This allows property owners to maintain their investments without the obligation of annual tax payments. The Cayman Islands is a place with no property taxes, on top of no value-added tax (VAT), net wealth or worth taxes, inheritance, and estate or gift taxes. This makes the islands an attractive destination for investors and residents seeking tax-efficient property ownership. However, the Stamp Duty is 7.5% of the purchase price or market value, whichever is higher.

Dominica

In Dominica, there is no tax on buying or selling real estate. Property owners are not required to pay property taxes, but a municipal tax of 1.27% of the assessed property value applies in Roseau and Canefield, the two largest cities. Additionally, leasing a property incurs a state fee of about 1% of the annual rental income, and real estate transactions are subject to a 2.5% Stamp Duty.

United Arab Emirates (UAE)

The UAE adopts a different property taxation approach than Western countries, which typically impose annual property taxes based on assessed values. In the UAE, the focus is on rental values and transaction fees rather than traditional property taxes. Municipal taxes are applied, varying by emirate and property type. In Dubai, residential and commercial properties are subject to a 5% tax based on their annual rental value. The UAE’s choice to become a country without property taxes aligns with its strategy to boost economic growth by promoting property ownership and attracting foreign investment. 

Qatar, Bahrain, Kuwait, Oman, and Saudi Arabia

Other than the UAE, other Middle Eastern countries like Bahrain, Kuwait, Oman, Qatar, and Saudi Arabia are all countries with no property taxes. The reason is part of their broader economic policies aimed at attracting investment, reducing the tax burden on residents, and leveraging alternative revenue sources such as oil, natural gas, and business-related fees.

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