Property tax structures vary widely. Switzerland's Liegenschaftssteuer is a cantonal/municipal tax of 0.1–0.3% of taxable value, applied in only some cantons. Germany's Grundsteuer was reformed in 2025 and now uses a new value-based formula, generally a few hundred euros per year for an apartment. France's taxe foncière is paid by the owner, while taxe d'habitation has been phased out for primary residences. Italy's IMU is paid only on second homes at roughly 0.4–1.06% of cadastral value.
On top of recurring property tax, transfers usually trigger a one-off transfer tax (Grunderwerbsteuer in Germany, 3.5–6.5%; droits de mutation in France, around 5.8%; imposta di registro in Italy, 2% on primary residence, 9% on others). In Switzerland it varies by canton.
For investors, property tax reduces yield by 0.2–1.5% per year and must be modelled into any rental analysis. Owner-occupiers benefit from various rebates and exemptions, especially for first homes.
An apartment in Milan worth EUR 350,000 (cadastral value EUR 1,200) attracts no IMU as a primary residence. The same apartment owned as a second home would pay roughly EUR 1,000–1,500 per year.