EU Science Hub

Housing Taxation

This project aims at collecting comparable time series on the main features of housing taxation in European countries. The information covered by the Housing Taxation database include the transfer tax, capital gain tax, information on imputed rent taxation and mortgage interest tax relief, the implicit recurrent property tax, maximum loan to value ratio, maximum loan duration, interest rate for long-term government bonds, interest income tax, house price, revenues from the recurrent property tax, etc. The data is provided for the period 1995-2017 and will be updated annually.

The data from the Housing Taxation database is used to estimate the user cost of owner-occupied housing (UCOH), following Poterba (1984, 1992), which is a synthetic indicator on the distortions exerted by the tax system on households' housing investment choices. This indicator is regularly used in policy analysis (see for instance European Commission, 2014) in order to measure the bias exerted by the tax system towards homeownership against renting and alternative forms of investment. The UCOH indicator is also included in the Housing Taxation database.

Database:

Housing Taxation Database 1995-2017

Paper:

Housing taxation: a new database for Europe