Which EU countries tax foreign property held by their residents each year: Spain, France, the Netherlands, Italy. Valuation and reporting duties, 2026.
Buying a flat in another country usually creates two sets of taxes: the ones in the country where the property stands (purchase taxes, local property tax, tax on rent), and the ones in the country where you are tax resident. This article is about the second set, and specifically about annual taxes on the value of the property, not on its income. Most EU countries do not have them. A few do, and they reach property located abroad.
The rules below were checked in October 2026 against public sources; we could not open every official page, and where a figure is unconfirmed we say so.
The basic idea
A country that taxes its residents on worldwide assets can include a house in Portugal or an apartment in Bulgaria in the base. The country where the property stands may also levy its own local tax. Which one gives relief for the other depends on national law and on the double taxation treaty, so the same asset can be taxed twice without any credit.
Spain
Spanish tax residents are subject to the regional net wealth tax (Impuesto sobre el Patrimonio) on worldwide assets, including real estate abroad. The allowance and rebates are set region by region, so the amount differs: check your region. On top of that there is the Temporary Solidarity Tax on Large Fortunes, which applies to net wealth above EUR 3 million. It was created by Law 38/2022 and, as far as we could see, is still regulated in 2026 (the tax authority amended its form 718 in June 2026), but whether it continues beyond the current year is a political question, so confirm it.
Spain also has an information return for assets abroad, Modelo 720. It is due between 1 January and 31 March of the following year, for each category (bank accounts, securities, real estate) where the total exceeds EUR 50,000. In January 2022 the Court of Justice of the EU (case C-788/19) held that the old penalty regime was disproportionate and contrary to the free movement of capital, mainly because of the 150% penalty on undeclared income and the effectively unlimited limitation period. Spain then amended the law (Law 5/2022). Secondary sources report that ordinary fixed fines remain, around EUR 20 per data item with a minimum of EUR 300 and a maximum of EUR 20,000; we could not confirm these figures on an official page. A separate return, Modelo 721, covers cryptoassets held abroad, not property.
France
French residents are liable to the real estate wealth tax (IFI) on their real estate in France and abroad when the net taxable real estate on 1 January exceeds EUR 1.3 million. Reported 2026 scale: nothing up to EUR 800,000, then 0.50% in bands, rising to 1.50% above EUR 10 million (figures from tax portals; the tax office form is the reference). The return is filed together with the income tax return. Mortgage debt related to the property can be deducted under conditions, so a heavily mortgaged property may fall below the threshold.
The Netherlands
The Netherlands does not have a wealth tax in the classic sense. Box 3 taxes a deemed return on net savings and investments, and a holiday home abroad counts as an investment. For 2026 the deemed return is reported at 6.00% for investments and other assets and 1.28% for bank balances. The tax is calculated on that deemed return. Foreign tax on the property can be credited under rules the tax authority publishes. A bill to allow taxpayers to prove a lower actual return was sent to parliament in March 2025; we did not verify its current status.
Italy
Italy levies IVIE, a property tax on real estate abroad owned by Italian residents, reported at 0.76% of the value, with no payment if the amount is EUR 200 or less. For property in EU countries the cadastral value of that country is used where one exists; otherwise the purchase price or market value. The foreign property must be reported in section RW of the return. One source mentions a higher 1.06% rate in some cases; we could not confirm it.
How foreign property is valued
There is no common EU method. Examples above: market value on 1 January (France), cadastral value if available (Italy), a deemed return on value (Netherlands). In Spain the valuation rules for foreign assets differ between the wealth tax and the information return, so take the rule from the form instructions or an adviser. Keep the purchase deed and a recent appraisal, translated if needed.
What residents of Poland, Germany, Czechia and the Baltics should know
We did not find an annual net wealth tax or a tax on the value of foreign property in Poland, the Baltic states or Czechia, and Germany has not levied a general wealth tax for many years. That does not mean there is nothing to report. Poland requires reporting of foreign assets to the central bank above a high threshold (reported as PLN 7 million; see our Poland-based guide). Income from the property is a different subject, covered in our overview by country. If you move to Spain, France, the Netherlands or Italy, the rules above start to apply to your existing property abroad, see tax residency when relocating.
FAQ
Does the country where the property stands collect a wealth tax from me? Usually it collects local property tax, not a wealth tax; check the municipality.
Is the Spanish wealth tax payable if I live in Poland? Not as a resident of Poland; Spain taxes non-residents only on Spanish assets, with its own rules.
Must I file Modelo 720 if I am not a Spanish resident? No, it applies to Spanish tax residents with assets abroad.
Can my mortgage reduce the base? In France mortgage debt may be deductible under conditions; in the Dutch Box 3 debts are considered too. Rules differ, ask an adviser.
Where is the official source? For Spain the Agencia Tributaria at https://sede.agenciatributaria.gob.es, for France https://www.impots.gouv.fr.
How we help
We are a trilingual platform that finds properties and coordinates independent local lawyers and tax advisers. This text is informational and is not legal, tax or investment advice; rules change, so verify the current rules with the tax authority of your country of residence before you buy. Official sources: Agencia Tributaria, impots.gouv.fr, Belastingdienst.