Owning an apartment or house means paying an annual tax based on the property’s value in most countries. This property tax, familiar to French homeowners, does not exist everywhere. Several countries around the world levy no annual tax on property ownership, radically changing the true long-term cost of owning a home.
No property tax does not mean no property costs
Before listing these countries, one point needs to be made clear. Countries that abolish annual property tax often make up for it with other charges. Stamp duties, paid once when a property is purchased, can amount to a significant sum. Condominium fees, taxes on rental income and transfer duties can also add to the cost.
Take the Cayman Islands, for example. No annual property tax is levied there. However, stamp duty applies to every transaction, and condominium fees include reserve contributions for maintaining common areas. So the overall cost of ownership is not zero.
This arrangement can be found in several jurisdictions. To explore the finer points of this topic, the Charny property tax website provides details on the tax systems of many countries. The key idea remains the same: compare the total cost of ownership, not just the “property tax” line item.
Countries in Europe with no property tax: very different cases
Europe has a few territories where no annual tax is levied on real estate, but they differ in terms of accessibility and economic profile.
Monaco and Malta
Monaco levies no property tax on homes owned by residents or non-residents. The downside: prices per square metre are among the highest in the world, making it a destination reserved for the very wealthy. If the property is rented out, a 1% tax is generally paid by the tenant.
Malta has a similar system. No property tax or residential tax is due, whether the property is used as a primary residence, a second home or a rental investment. The island is increasingly attracting remote workers thanks to this tax framework and a cost of living that is more moderate than Monaco’s.
Croatia and Liechtenstein
Croatia and Liechtenstein also appear on lists of European countries without conventional annual property tax. In Liechtenstein, foreign nationals face strict restrictions on buying property, limiting its practical appeal to overseas investors. Croatia, an EU member, is more accessible, but local regulations are evolving and other taxes may apply depending on the municipality.
Property tax in the Middle East: Gulf destinations
Looking for a place with virtually no property taxes? The Persian Gulf countries regularly feature in the rankings.
Dubai (United Arab Emirates) levies no annual property tax. This is one of the main factors driving the local real estate market, which is highly popular with foreign investors. Registration fees are payable when buying, however, and service charges in residential buildings can be high.
Bahrain and Oman follow the same approach: no annual property tax, but transfer fees apply when a property is purchased. The absence of recurring tax makes ownership costs predictable, an advantage for investors looking to calculate net rental yields.
The special case of Saudi Arabia
Saudi Arabia is often listed among countries with no property tax. The reality has been more nuanced since 2025. The “white land” scheme has been expanded: some vacant urban plots are now subject to an annual levy. The measure aims to curb land speculation in major cities. It is not a general tax on all properties, but a targeted levy. Lists compiled before 2025 may therefore be misleading on this point.
Seychelles, Vanuatu, Sri Lanka: alternatives off the beaten track
Outside Europe and the Gulf, several countries do not levy annual property tax.
- The Seychelles levies no property tax on owned properties, but foreign buyers must go through government approval procedures.
- Vanuatu, an archipelago in the South Pacific, combines no property tax with no income tax. The trade-off is its remote location and an illiquid real estate market.
- Sri Lanka also has no general annual property tax, although local taxes may vary by municipality.
These destinations appeal to a range of people: retirees seeking a tropical lifestyle, investors looking to diversify their portfolios, and mobile freelancers.
Low property taxes: sometimes a more realistic option
Between having no tax at all and paying conventional European rates, some countries apply very low rates that are worth considering.
- Georgia levies a tax of 1% of a property’s value, but individuals whose annual income falls below a certain threshold are exempt.
- The Netherlands and Saint Kitts and Nevis have rates of no more than 0.5%, well below those in France or the United States.
- Hungary is regularly cited as a European country with no property tax, although local levies apply in some municipalities.
Why consider them? Because a very low rate, combined with an affordable purchase price and a decent rental yield, can deliver a better net return than a country with no tax but high entry or management costs.
The profitability of a real estate investment depends on all applicable charges, not just one tax line. A country with no property tax, where stamp duties amount to several percent of the purchase price, condominium fees are high and resale is complicated, may be less attractive than a country with moderate property taxes but a stable, predictable legal framework. Taking this broader view is what makes it possible to make an informed choice.
