Own property abroad tax-free: 21 top countries

Property taxation falls into four categories: taxes on buying, owning, selling, and renting out real estate.

Buying property. Buyers often pay stamp duty, which is a tax on legal documents, and transfer tax, which applies to the transfer of ownership. In some countries, only one of these taxes is charged. Additional costs may include notary and registration fees, mortgage taxes, and real estate agent commissions.

Owning real estate usually involves annual property taxes, calculated as a percentage of the property’s assessed value.

Renting out property. Rental income is generally taxable, either at a fixed rate or as part of the owner’s personal income tax. Landlords are often allowed to deduct certain expenses such as maintenance costs, mortgage interest, and property management fees.

Selling real estate may result in capital gains tax on the profit from the sale. Some countries offer exemptions for primary residences or apply reduced rates for long-term ownership. Real estate agent commissions, typically ranging from 3 to 6% of the sale price, are also common.

When referring to no or low property taxes, we usually mean the tax on owning real estate. Low property tax rates are defined as those below 0.5%.

The list of countries with no property tax includes the following:

• Bahrain,

• Cayman Islands,

• China,

• Dominica,

• Malta,

• Mauritius,

• Monaco,

• Oman,

• Turks and Caicos Islands,

• UAE,

• Vanuatu.

The following countries apply low property tax rates, not exceeding 0.5%:

• Bulgaria — 0.2 to 0.45%;

• Ecuador — 0.025 to 0.5%;

• Indonesia — 0.5%;

• Netherlands — 0.05 to 0.3%;

• Seychelles — 0.25%;

• St Kitts and Nevis — 0 to 0.3%;

• Switzerland — 0.05 to 0.3%;

• Thailand — 0.3%.

Some countries do not use percentage-based property taxes but instead charge fixed fees based on the property’s size. For example, Croatia charges €0 to 8 per m², while Greece charges €2 to 16 per m². In most cases, this means the total amount paid also falls below 0.5% of the property’s value.

Purchasing real estate in some countries can lead to residency or citizenship. Greece, Malta, and the UAE offer residency programs tied to property investment, while St Kitts and Nevis and Dominica provide routes to citizenship through approved real estate purchases.

The UAE has the lowest property investment threshold for residency, granting a 2-year residence permit for properties valued at a minimum of $205,000. In Greece, the required minimum investment is €250,000, whereas Malta sets a higher entry point, starting at €375,000.

For citizenship, Dominica requires an investment of at least $200,000 in government-approved real estate. St Kitts and Nevis offers a similar program, with a minimum investment of $325,000 or more in qualifying properties.

Malta does not levy an annual tax on property ownership.

When purchasing real estate in Malta, buyers pay a 5% stamp duty. However, first-time buyers are exempt from stamp duty on the first €200,000 of the property’s value. Legal fees generally amount to around 1.5%, bringing the total transaction costs to approximately 6.5% of the purchase price.

Rental income is taxed at a flat rate of 15%.

Property sale taxes in Malta are calculated based on the full selling price rather than the profit earned. The applicable rate depends on how long the property was held and whether it served as the seller’s primary residence:

• 0% for a primary residence owned for at least 3 years;

• 5% for second homes sold within 5 years;

• 8% for second homes held for more than 5 years.

Foreigners can obtain Malta permanent residence by purchasing property worth at least €375,000. In addition to the property investment, applicants must pay at least €80,000 in government contributions and donate €2,000 to a registered Maltese charity.

Properties acquired under the Malta Permanent Residence Programme cannot be rented out.

Malta permanent residence permit holders gain the following advantages:

• visa-free travel within the Schengen Area;

• access to Malta’s healthcare and education systems;

• opportunity to expand business within the EU market;

• option to relocate to a safe and peaceful Mediterranean country.

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Monaco does not impose an annual tax on property ownership.

The transfer tax on property purchases ranges from 4.5 to 7.5%, depending on the type of buyer. If a property is rented out, landlords are required to pay a 1% tax on the annual rental income.

Capital gains from the sale of real estate are taxed at a rate of 33.3%.

Croatia does not impose an annual tax on properties used as a permanent residence.

Holiday homes used for vacations or temporary stays are subject to a local tax ranging from €0.60 to 8 per m². This fee-based system often results in a lower overall tax burden compared to a 0.5% property tax, which we consider the upper threshold for a low tax rate. For example, an 85 m² apartment valued at €260,000 would incur an annual tax of €680 if taxed at €8 per m². By comparison, a 0.5% flat-rate tax on the property’s value would amount to €1,300.

Some properties may be exempt from taxation, such as those in poor condition or located in areas lacking communal infrastructure. On the other hand, luxury properties may be taxed at rates above €8 per m². The exact tax amount is determined by the local municipality or city authority.

A 3% transfer tax is applied upon the purchase of a property.

Rental income is taxed at 12%. A lump-sum deduction of 30% is allowed for expenses, reducing the taxable amount to 70% of the gross income.

Capital gains from the sale of real estate are taxed at 12%.

Greece does not use a fixed property tax rate but charges €2 to 16 per square metre based on property size. This is usually below the 0.5% threshold for a low property tax rate. For example, a 60 m² apartment valued at €250,000 would incur an annual tax of €960 if taxed at €16 per square metre. In contrast, a 0.5% flat rate on the property’s value would result in a tax of €1,250.

A 3% tax is applied when purchasing a property, along with an additional 0.09% municipal tax.

Rental income is taxed progressively at rates between 15 and 45%. However, properties leased for at least 36 months are eligible for a full exemption if the lease is signed between September 8th, 2024, and December 31st, 2025.

Until December 2026, capital gains from the sale of real estate are exempt from taxation.

Foreign nationals who invest at least €250,000 in real estate in Greece are eligible for the Greece Golden Visa.

The options are the following:

• €250,000+ for properties purchased for renovation or conversion into residential use;

• €800,000+ for properties located in Attica, Thessaloniki, Mykonos, Santorini, and other islands with populations over 3,100;

• €400,000+ for properties in all other regions of Greece.

Properties must have a minimum size of 120 m², except those acquired for renovation or conversion into residential use, which are exempt from this requirement.

Applicants may purchase one or more residential or commercial properties. In the case of commercial real estate, the investor must fully own the company making the purchase.

Albert Ioffe,

Legal and Compliance Officer, certified CAMS specialist

In most countries offering residency or citizenship by real estate investment, the property must be registered solely in the main applicant’s name. While family members can be included in the application and receive residence permits or citizenship alongside the investor, co-ownership is generally not permitted.

Greece is an exception. Under the Greece Golden Visa program, joint property ownership is allowed for spouses if they are officially married or have registered a cohabitation agreement in Greece.

Investors must retain ownership of the purchased property for the entire duration of their residence permit. Renting out the property is allowed, with annual rental yields ranging from 3 to 5%. However, only long-term leases are permitted.

A Greece residence permit offers several benefits:

• visa-free travel within the Schengen Area for up to 90 days in any 180-day period;

• access to high-quality healthcare and education;

• easy relocation to a warm, sunny European country;

• pathway to Greek citizenship after 7 years of residency.

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Netherlands. Property tax in the Netherlands varies depending on the type of real estate and the municipality in which it is located.

Each municipality sets its own rates. On average across the country, residential real estate is taxed at around 0.05%, and commercial property at around 0.3%. For example, in Amsterdam, residential properties are taxed at 0.0577%, and business properties are taxed at 0.2436%.

The general transfer tax rate is 10.4%. A reduced rate of 2% applies when the property is purchased as a primary residence. Starting in 2026, second homes and holiday properties will be taxed at 8%.

Buyers may qualify for an exemption from the transfer tax if all of the following conditions are met:

• еhey are under 35 years old at the time of purchase;

• it is their first home purchase;

• property is valued at €525,000 or less.

If the property value exceeds €525,000, the buyer must pay the reduced 2% transfer tax.

There is no direct capital gains tax on the sale of real estate in the Netherlands. Rental income is also not taxed.

Switzerland. Property tax in Switzerland ranges from 0.05 to 0.3% of the property’s assessed value, depending on the canton.

Transfer tax on property purchases varies between 1 and 3%, depending on the location.

Rental income is taxed as part of personal income, with rates reaching up to 45.5%, based on the taxpayer’s overall income and the canton’s tax structure.

Capital gains tax on real estate sales also differs by canton and is influenced by the length of ownership. The longer the property is held, the lower the tax rate, encouraging long-term investment.

Bulgaria. Property tax in Bulgaria is set by local municipalities and ranges from 0.01 to 0.45% of the property’s value.

When purchasing real estate, buyers are required to pay a municipal transfer tax ranging from 0.1 to 3%, depending on the location. Rental income is taxed at a flat rate of 10%.

When selling property, a 10% capital gains tax also applies.

The Cayman Islands do not impose an annual tax on property ownership. There is also no capital gains tax on the sale of real estate.

A stamp duty of 7.5% is payable upon the purchase of real estate. If the property is rented to tourists, a 13% tourism accommodation tax applies.

Turks and Caicos Islands. There is no annual property tax in the Turks and Caicos Islands. Rental income is also not taxed, and there is no capital gains tax on the sale of real estate.

A stamp duty of 8% is applied upon the transfer of ownership when purchasing property.

Ecuador imposes a municipal property tax ranging from 0.025 to 0.5% of a property’s commercial value. Rural properties are taxed at a maximum rate of 0.3%. The exact rate is determined based on government assessments.

When purchasing real estate, a 10% transfer tax is applied. Rental income is subject to a flat tax rate of 25%. Capital gains from property sales are taxed as part of personal income, with rates ranging from 0 to 37%, depending on the seller’s total income and applicable tax bracket.

Dominica generally does not impose a property tax. However, a municipal tax of 1.25% applies in the areas of Roseau and Canefield.

Property purchase taxes include a 6% transfer tax, along with stamp duty of 2.5% paid by the seller and 4% by the buyer.

Rental income is taxed as personal income at progressive rates ranging from 15 to 35%.

There is no capital gains tax on the sale of real estate.

Dominica offers citizenship by investment to individuals who purchase approved real estate valued at $200,000 or more. Investors are allowed to rent out their properties, earning 3 to 5% annually, and may sell them after 3 or 5 years, depending on the buyer.

Benefits of Dominica citizenship include:

• visa-free access to over 140 countries;

• eligibility for a 10-year US visa;

• tax optimisation opportunities;

• creation of a secure second residency or safe haven.

St Kitts and Nevis. Property tax in St Kitts and Nevis is applied to both land and buildings, with rates varying based on the property’s type and location. Tourist accommodations and commercial properties are subject to the highest tax rates.

Foreign investors who build new properties may qualify for a one-year property tax exemption starting from the completion date of construction.

Upon signing a real estate purchase agreement, the stamp duty of 6—10% is paid by the seller. Transfer tax is not charged.

Income from renting out real estate in St Kitts and Nevis is not taxed. There is also no capital gains tax on the sale of real estate.

Affluent foreign investors can obtain citizenship of St Kitts and Nevis by purchasing government-approved real estate worth at least $325,000.

St Kitts and Nevis citizenship offers the following advantages:

• visa-free access to 140+ countries, including the Schengen Area;

• eligibility to apply for a 10-year US Visitor Visa;

• opportunity to create a safe haven in the Caribbean.

In China, property tax applies only to real estate used for business purposes or leased. All other property types, including owner-occupied residential properties, are exempt from property tax. The tax is calculated in one of two ways:

• 1.2% of the property’s original value, with local governments often offering a 10 to 30% reduction;

• 12% of the rental value.

Property owners may choose the method that results in the lower tax burden.

When purchasing real estate in China, buyers are required to pay a deed tax ranging from 3 to 5%, along with a stamp duty of up to 0.1%. Rental income is subject to a flat tax rate of 20%, while capital gains from the sale of real estate are also taxed at 20%.

In Thailand, property tax rates depend on the purpose for which the property is used. A rate of 0.15% applies to land and buildings used for agricultural purposes, while 0.3% is charged on residential properties. For all other types of land and buildings, a higher rate of 1.2% applies.

When purchasing property, buyers must pay a 2% transfer fee based on the property’s appraised value, along with a 0.5% stamp duty.

Capital gains from the sale of real estate, as well as rental income, are taxed as personal income. The applicable rates range from 0 to 35%, depending on the amount of profit earned.

In Indonesia, property tax is levied at a rate of up to 0.5% of the property’s government-assessed value.

When purchasing real estate, a 5% acquisition tax is applied, calculated on the higher of the purchase price or the assessed value. Rental income is subject to a flat tax rate of 10%, while capital gains from the sale of property are taxed at 2.5%.

Bahrain does not impose property tax, rental income tax, or capital gains tax on real estate transactions. Property purchases are also free from transfer taxes.

However, a 2% stamp duty is charged on property registration documents. This rate can be reduced to 1.7% if payment is made within 60 days of the transaction date.

Oman does not levy property tax, and both rental income and capital gains from the sale of real estate are tax-free. However, a 3% stamp duty is charged on property transfers at the time of purchase.

The United Arab Emirates imposes no property tax.

Transfer tax varies by emirate and is typically split equally between the buyer and the seller. It is set at 4% in Dubai and 2% in Abu Dhabi.

Individuals are not taxed on rental income or capital gains from the sale of real estate.

The UAE residence permit, also known as the Golden Visa, can be obtained by purchasing real estate. The investment requirements are as follows:

• AED 750,000, or ≈ $205,000, for a 2-year Residency Visa;

• AED 2,000,000, or ≈ $545,000, for a 10-year Golden Visa.

Financing is permitted, with down payments ranging from 20% to 50%, depending on the visa duration.

UAE residency may be convenient for benefits such as access to top-tier healthcare and education, opportunities for tax optimisation, and relocation to a safe and economically stable country.

Mauritius does not impose an annual property tax or capital gains tax on real estate sales.

A 5% transfer tax is applied at the time of property purchase. Rental income is taxed at progressive rates ranging from 0 to 20%, depending on the amount earned.

Seychelles. The standard property tax rate in Seychelles is 0.25%. However, commercial and industrial properties are exempt. Additionally, non-Seychellois citizens are exempt from property tax for one year if they purchase a residential property for the first time after January 1st, 2020.

When purchasing real estate, a 5% stamp duty is payable. Foreign buyers must also cover additional government fees for approval to acquire property:

• 1.5% for processing by the Ministry;

• 11% for the approval itself.

Since January 2023, property owners who lease to tourists must pay a 2% Accommodation Turnover Tax, applicable to businesses with annual turnover exceeding SCR 25,000,000, or ≈ $1,740,000.

There is no capital gains tax on the sale of real estate in Seychelles.

Vanuatu does not impose any taxes on property ownership.

When purchasing real estate, buyers are required to pay a 5% stamp duty and a 2% registration fee.

Rental income is taxed at a flat rate of 12.5%. However, individuals are exempt if their rental income is less than VT 200,000, ≈ $1,620, over a six-month period. Legal entities are not eligible for this exemption.

There is no capital gains tax on the sale of real estate in Vanuatu.

To earn high rental income. For investors seeking strong rental returns, Oman, Indonesia, and the United Arab Emirates stand out due to their high rental yields and vibrant property markets.

Oman offers average yields of 7.2%, making it one of the most profitable markets in the region. Indonesia, particularly Bali, and the UAE, especially Dubai, provide yields of around 6.2%, driven by booming tourism and a thriving short-term rental sector.

In Europe, Malta leads with a gross rental yield of 5.5%, followed closely by the Netherlands, offering a solid return of 5%.

To own a luxury holiday home. If your goal is to enjoy a luxurious lifestyle while also making a sound investment, Monaco and several Caribbean nations are top-tier choices.

Monaco, especially the prestigious Monte Carlo district, epitomises luxury and exclusivity, attracting high-net-worth individuals from around the world.

In the Caribbean, the Cayman Islands — notably Seven Mile Beach — offer upscale beachfront living with world-class amenities and favorable tax policies. Turks and Caicos, particularly Providenciales, is renowned for its pristine beaches, making it an ideal location for a high-end holiday retreat.

For a blend of affordability and lifestyle, Greece offers excellent opportunities. Islands like Santorini and Mykonos boast breathtaking views and strong short-term rental potential.

Seychelles, with its crystal-clear waters, white-sand beaches, and exclusive resorts, is perfect for those dreaming of a private island-style holiday home.

To get residency or citizenship. Several countries offer residence permits or citizenship in exchange for real estate investment. Requirements vary by country, including minimum property values and application processes. Top options include:

• Greece — €250,000+;

• Malta — €375,000+;

• Dominica — $200,000+;

• St Kitts and Nevis — $325,000+;

• UAE — $205,000+.

These investment programs provide not only property ownership but also access to benefits like visa-free travel, tax advantages, and long-term relocation opportunities.

1. Property taxation includes four main categories: taxes on buying, owning, selling, and renting out real estate.

2. Countries with no property tax include Bahrain, China, Dominica, Malta, Mauritius, Monaco, Oman, Cayman Islands, Turks and Caicos Islands, the UAE, and Vanuatu.

3. Bulgaria, Croatia, Ecuador, Greece, Indonesia, Netherlands, Seychelles, St Kitts and Nevis, Switzerland, and Thailand have property tax lower than 0.5%.

4. Some countries with low property tax grant residence permits or citizenship for real estate buyers. Among them are Malta, Greece, the UAE, St Kitts and Nevis, and Dominica.

5. The process of getting residency or citizenship by real estate investment usually takes at least 4 months.