Spain's levy on entities, France's 3% tax, Greece, Italy, Cyprus and UAE registration fees: what is confirmed, what is not, and what to ask before buying through a company.
Several countries tax property differently when a company owns it. The rule can be a yearly levy on the value of the property, a higher rate of a local property tax or an extra registration fee. Often the aim is to discourage hidden ownership, not to tax companies as such, and it is common to be exempt if the company discloses its owners or runs a real business. This article lists what we could confirm and, as clearly, what we could not. It is informational, not legal, tax or investment advice. Rates and conditions change; confirm them with the tax office or a local adviser before relying on any of them. The general comparison between a company and personal ownership is in buying through a company or personally.
Spain: special levy on entities in non-cooperative jurisdictions
The Spanish Tax Agency describes a special levy (gravamen especial sobre bienes inmuebles de entidades no residentes). It applies to entities resident in tax havens, or since 11 July 2021 in non-cooperative jurisdictions, that own or hold rights over Spanish property. The rate is 3% and the base is normally the cadastral value. The levy is declared on form 213 in January for the year ending the previous 31 December. Exempt are foreign states and public bodies, international organisations, entities that carry on a continuous economic activity in Spain beyond simply holding or letting property, and listed companies. The official page is here.
The point that people often miss is the condition: the levy is about where the entity is resident, not about every foreign company. A company in an ordinary EU country is not in this category, but the list of jurisdictions is set by Spanish rules and can change, so check it. Our Spain pages, such as Spain property investment risks, cover the wider picture.
France: the 3% tax on property held by entities
Under French law, legal entities, French or foreign, that directly or indirectly own property in France or rights over it owe a tax of 3% of the fair market value, assessed on 1 January. The French tax administration describes it on its site: impots.gouv.fr, taxe de 3 %. The declaration, form 2746-SD, is filed online by 15 May each year.
Many entities are exempt from the payment if they meet conditions, and some are not required to file at all. According to the administration, these include listed entities, entities where French property is less than half of their French assets, certain entities based in France, the EU or countries with an administrative-assistance agreement with France when the property is below a small threshold, and entities that disclose to the administration their location, shareholders above 1% and the property each year. The exemption is therefore tied to transparency. A company that does not file, or files late, can face penalties, so do not assume the exemption without a filing. Read the exact conditions on the official page or ask a French adviser. Our France property investment risks guide is the starting point for the country.
Greece: ENFIA supplementary tax for legal entities
Greece has an annual property tax, ENFIA, and a PwC summary of the Greek real estate taxation we found states that legal entities pay a supplementary tax at 5.5 per mille of the tax value of the property, reduced to 1 per mille where the company uses the property for its own commercial activity. That summary dates from 2019, and we could not confirm the current rate or base from an official source; treat the figure as an indication only and ask a Greek accountant for the figures for the current year. Greece also has other charges that apply to purchases by companies or non-Greek buyers, which we have not verified.
Italy: the home-country side and company ownership
Italy taxes the local property of any owner through municipal property tax (IMU), with specific rules for categories of luxury homes. We could not confirm from an official source how IMU and related rules treat a company that owns Italian property, so we do not give a rate. A separate point concerns Italian residents: Italy charges its tax residents a tax on foreign property (IVIE), reported at 1.06% of value from 2024 by secondary sources, and the position of foreign companies owned by Italian residents is a matter for a specialist. If you plan to buy in Italy through a company, see Italy property prices and buying costs and ask an Italian commercialista about both IMU and income tax on the company.
Cyprus: no annual property tax, but transfer costs remain
Cyprus abolished its annual immovable property tax from 1 January 2017, according to Cypriot tax commentary. The absence of an annual tax does not mean the country is free of costs: transfer fees, VAT on new buildings and taxes on rental income and gains apply, and there may be other local levies. See our guide to Cyprus property investment risks and the ownership-cost lines in total cost of ownership abroad. For a company, ask separately about corporate tax and the treatment of a later share sale.
UAE: registration fees and company buyers
In Dubai a property purchase is registered with the Dubai Land Department, and a registration fee of 4% of the price is widely reported, along with administrative fees. We took this figure from broker and developer sources and did not open the Land Department page, so please check the current fee there. Whether a company can register property, which companies (mainland or free zone) are allowed, and in which areas, depends on the emirate and the zone rules, and these should be checked with the Land Department and the relevant authority, not only with a company-formation agent. Dubai does not tax rental income of individuals in the way many EU countries do, but you remain taxable in your own country of residence; see Dubai service charges and ownership costs.
What to ask before you buy through a company
- Does the country apply a yearly levy or a higher rate to property owned by companies, and are there exemptions tied to disclosure of owners?
- Which form and which deadline does the company face, and what are the penalties for missing it?
- Is the rate based on market, cadastral or tax value, and who sets the value?
- Does the rule depend on where the company is resident, or on the percentage of property in its assets?
- How does the same property compare under personal ownership?
- What does your own country of residence do with the company's income?
FAQ
Is company-owned property always taxed more? No. Many countries tax it like any other property. The special levies discussed here are linked to particular entity types or to a lack of disclosure.
Can the French 3% tax be avoided? The administration describes exemptions, mostly tied to disclosure and the type of entity. Whether you qualify is for a French adviser to confirm; do not assume it.
Does the Spanish levy hit any foreign company? According to the Tax Agency it concerns entities resident in tax havens or non-cooperative jurisdictions, with exemptions. A company in an ordinary EU country is not in this category, but check the current list.
Are the Greek and Italian figures reliable? Treat them as indications. We could not confirm them from official sources, and we say so above.
Who files the declaration? The company, usually through a local representative. Late or missing filings can be penalised.
How we help
We are a trilingual platform that finds properties and coordinates independent local lawyers and tax advisers who can check the taxes that apply to your structure in the specific country. This article is informational and is not legal, tax or investment advice; rules and rates change, so verify the current rules with the tax authority before you decide.