Beaucaire From Syria, joined Sep 2003, 5252 posts, RR: 24 Posted (6 years 9 months 1 week 2 days ago) and read 1466 times:
This is not a thread about US or any countries particular laws-but a general observation.
The perceived advantage of investing money into real estate –over a longer period- seems attractive to 95% of home or property buyers.
If one takes the pain to scratch the surface of the life of a normal European property (not a US home built in wood and meant to last for 15 years..),one comes to a staggering conclusion..
Say a home built by grand –grand parents of a French farmer somewhere in the French country-side..
The house was maybe built at 1750 ( not so old for European conditions ..)
So it has been sold at least 8-10 times. Each time the state takes a tax on the sale of the property. Since 50 years at least owners have to pay a property and housing tax ,amounting to typically 0.7- 1% of the value of the property (some countries even 1.5-2%/year !)
Sales taxes and “notaires fees” are typically 6-12% for each sale ,depending on the country you live. Having worked in real estate for some years ,I’m always astounded to see the value the state cashes for some larger properties ,that are sometimes sold just after two ,three years.
I know of homes that have been sold three times within seven years ,each time providing 6.7% revenue to the Tax-office, without taking into account the housing taxes and other taxes paid in the meantime .The state also takes tax on added values of home-sales ( 26% in France ) – so if ones considers the cost of ownership of homes ,they are just frightening !
Most homes bring more likely as much value to the state than they are worth to the owners !
You own land-you have to pay for ownership – why ???
People have to pay already taxes on their salaries before they purchase property- so why on earth do we have to pay additional taxes on something we bought with already taxed money ?
If people would refuse to pay property tax world-wide and globally-what could the states do ?
L410Turbolet From Czech Republic, joined May 2004, 5782 posts, RR: 18
Reply 1, posted (6 years 9 months 1 week 2 days ago) and read 1454 times:
Quoting Beaucaire (Thread starter): People have to pay already taxes on their salaries before they purchase property- so why on earth do we have to pay additional taxes on something we bought with already taxed money ?
Well, the same logic applies to VAT as well and don't forget that the money have been most likely deposited in a bank for some time and the interest they earned was taxed as well.
Pope From , joined Dec 1969, posts, RR:
Reply 2, posted (6 years 9 months 1 week 1 day 22 hours ago) and read 1421 times:
Are property taxes re-assessed each year based on the current value of the property? I know that in certain US states (Florida and California) the property tax bill can only increase by a certain % every year. So many long time homeowner pay tax on a very small portion of their house's value. How does it work in Europe?
Beaucaire From Syria, joined Sep 2003, 5252 posts, RR: 24
Reply 3, posted (6 years 9 months 1 week 1 day 21 hours ago) and read 1408 times:
If you renovate your property (say you ad more bathrooms ,a pool,or more windows,just make it nicer ..) you are re-assessed and pay more real-estate tax.
Real estate tax has risen to completely insane levels,making it sometimes impossible for elderly people to rermain in a home they possessed for many years.The real-estate tax are cashed by the cities or regions-not the central government-so the more they build,the higher the taxes become...A new covered pool for the municipality, a new school, a new stadium ? you get it - but you pay dearly !!! Some cities have increased their inhabitant taxes by 20% from one year to the other. No way to escape other than sell your home-if you can !