Cross-Country Review of Taxes on Wealth and Transfers of Wealth
European Commission
Main summary of pages mentioned in the course book – Chapter 2: Executive summary
Overview of taxes
Wealth on taxes are usually identified as taxes on the possession of net-wealth but their actual
range is much wider.
What can be considered as taxes on wealth and what kinds of taxes are there? This study
addressed three categories:
1. Inheritance and gift;
- Separate tax commonly used for inheritance. Gift taxation usually part of a general
tax. Nevertheless, a separate tax is still most common approach
- Countries using separate tax for gifts and inheritance apply the same regulatory tax
law on both.
2. Real estate and land;
- Real estate is taxed in every MS.
- Real estate possession is taxed the most (27 MS).
- Taxation on real estate transfers follows (26 MS)
3. Annual recurring taxes on the possession of wealth/specific assets
- 8 MS tax possession of certain assets
- 7 MS tax vehicles (aim: environmental purposes as opposed to taxing wealth)
- Italy alone impose taxation on bank accounts/financial assets (aim: tax wealth)
- Aside from above mentioned specific taxes, only three MS use general net-wealth as
a taxable base1
The importance of wealth taxes
With the exception of taxes on the possession of net-wealth, wealth taxes are widely used
within the EU. Are they important for tax revenue though?
- Wealth taxes on average raise 3.02% of tax revenue. Wealth taxes represent on
average 1.06% GDP.
- Most wealth tax revenue come from real estate and land taxation: 2.59% of total tax
revenue/0.16% of GDP.
- Taxation on inheritance and gift (widely used but) account for a small part of tax
revenue: 0.39% of total tax revenue/0.16% of GDP.
- Taxes on the possession on net-wealth: 0.36% of total tax revenue/0.15% of GDP.
Inheritance and net-wealth tax not much contribution to total tax revenue + small portion
of GDP.
1
Spain and France. Netherlands has a provision in its income tax.
European Commission
Main summary of pages mentioned in the course book – Chapter 2: Executive summary
Overview of taxes
Wealth on taxes are usually identified as taxes on the possession of net-wealth but their actual
range is much wider.
What can be considered as taxes on wealth and what kinds of taxes are there? This study
addressed three categories:
1. Inheritance and gift;
- Separate tax commonly used for inheritance. Gift taxation usually part of a general
tax. Nevertheless, a separate tax is still most common approach
- Countries using separate tax for gifts and inheritance apply the same regulatory tax
law on both.
2. Real estate and land;
- Real estate is taxed in every MS.
- Real estate possession is taxed the most (27 MS).
- Taxation on real estate transfers follows (26 MS)
3. Annual recurring taxes on the possession of wealth/specific assets
- 8 MS tax possession of certain assets
- 7 MS tax vehicles (aim: environmental purposes as opposed to taxing wealth)
- Italy alone impose taxation on bank accounts/financial assets (aim: tax wealth)
- Aside from above mentioned specific taxes, only three MS use general net-wealth as
a taxable base1
The importance of wealth taxes
With the exception of taxes on the possession of net-wealth, wealth taxes are widely used
within the EU. Are they important for tax revenue though?
- Wealth taxes on average raise 3.02% of tax revenue. Wealth taxes represent on
average 1.06% GDP.
- Most wealth tax revenue come from real estate and land taxation: 2.59% of total tax
revenue/0.16% of GDP.
- Taxation on inheritance and gift (widely used but) account for a small part of tax
revenue: 0.39% of total tax revenue/0.16% of GDP.
- Taxes on the possession on net-wealth: 0.36% of total tax revenue/0.15% of GDP.
Inheritance and net-wealth tax not much contribution to total tax revenue + small portion
of GDP.
1
Spain and France. Netherlands has a provision in its income tax.
