Docstoc

IMMOVABLE PROPERTY IN EUROPE REPORT 2003 ABOUT PROTECTION OF

Document Sample
IMMOVABLE PROPERTY IN EUROPE REPORT 2003 ABOUT PROTECTION OF Powered By Docstoc
					IMMOVABLE PROPERTY IN EUROPE:
REPORT 2003 ABOUT PROTECTION OF
  PROPERTY, TAXATION, RENTALS,
TECHNICAL REQUIREMENTS & SERVICES
      FOR PROPERTY OWNERS

     BERLIN 2003, U.I.P.I.
                The content of this book is based on the reports of the national organizations-                                                                                       I am grateful to all the members of our Inter-
                members of U.I.P.I. and on the reports of the presidents of the U.I.P.I. working                                                                                      national Union having realized this book in
                commissions. The opinions of the reports’ writers are not necessarily expres-                                                                                         close cooperation about the very actual issues
                sing the official views of U.I.P.I. The taxation report does not contain an exhau-                                                                                    in the international field of real property
                sive comparative tax law analysis and the taxation data cannot be guaranteed                                                                                          ownership.
                for accuracy at the time going to printing.
                                                                                                                                                                                                 Drs. Henny J. van Herwijnen
                Preface made by the President of U.I.P.I.                                                                                                                                              President of the U.I.P.I.
                Drs. Henny Van Herwijnen . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .               3

                Preface made in English by the President
                of Haus & Grund Deutschland, Rüdiger Dorn . . . . . . . . . . . . . . . . . . . . . .                          4

                Preface made by the Secretary General of U.I.P.I.,
                Mr. Stratos Paradias, who responsible for this edition . . . . . . . . . . . . . . .                           5

                Short history of U.I.P.I. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .        6    Preface by Drs. Henny J. van Herwijnen,
                 • The reports of the Working Committees . . . . . . . . . . . . . . . . . . . . . . . . . . .                 6    President of the U.I.P.I.
                  • Report about the protection of real estate property by the                                                      This year is the 80th anniversary of the Inter-
                    Constitutions of European countries & short report about                                                        national Real Estate Union.
                    the restitution of property in former Eastern European countries;                                               Founded in 1923, between the two world
                    Report by Mr. Jürgen Happ, vice president of U.I.P.I. and                                                       wars, the need was at that time already felt by
                    of Haus & Grund Deutschland . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .             9   many private real estate owners to cooperate
                                                                                                                                    in the international field, to share views and
                  • Report about Taxation of real estate property in European countries,                                            to be informed about international develop-
                    by Mr. Stratos Paradias, Secretary General of U.I.P.I. and President                                            ments. Today, the U.I.P.I. has twenty national
                    of Hellenic Property Federation (HPF) . . . . . . . . . . . . . . . . . . . . . . . . . . . .              12   non-profit member organizations, all over
                                                                                                                                    Europe, with several millions of individual
                  • Report about house and commercial rentals in European countries,                                                real property owners.
                    by RNDr. Tom Simecek, president of Property Owners                                                              The aims of the U.I.P.I. are still very actual.
                    of Czech Republic (OSMD) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .             51   Expansion and protection of the rights of real
                                                                                                                                    property in its various forms and the protec-
                  • Report of the Technical Committee of U.I.P.I. about existing                                                    tion of real estate by national, international
                    EU regulations concerning the construction of new buildings                                                     and supra national organizations.
                    or renovation of the old buildings in Europe, by Mr. Michele Vigne,                                             Private real property means commitment. It
                    vice president of the Italian property owners organization                                                      always has to deal with long term views and
                    (CONFEDILIZIA) (Attachments A & B) . . . . . . . . . . . . . . . . . . . . . . . . . . . . .               61   decisions on restorations and redevelopment
                                                                                                                                    of our cities and urban centers and it has to
                Report of the Member’s Services Committee, about                                                                    cope with the needs in the area of energy
                suggestions of improving our organization’s services                                                                conservation. So, it means also a great res-
                to our individual members, by Mr. Olav Vilnes,                                                                      ponsibility towards society, whereas at the
                vice president of U.I.P.I. and President of the Norwegian                                                           same time individual real property must be
Contents List




                property owners organization Huseiernes Landsforbund                                                                considered as a human right and a cornersto-
                (Attachments A & B) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .          69   ne of our free economic society.
                                                                                                                                    In a world, becoming more and more profes-
                Declaration of the 37th International Congress                                                                      sional, there is the growing need for actual




                                                                                                                                                                                                                                       Preface
                of U.I.P.I. (Berlin) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   73   information on real estate property. Our mem-
                                                                                                                                    ber organizations and the millions of our indi-
                List of the Executive Committee members, Presidents                                                                 vidual members have to be fully prepared for
                and office addresses of all our national organizations –                                                            taking their social and economic responsibili-
                U.I.P.I.’s members . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .     75   ties, based on facts, figures and developments.


2                                                                                                                                                                                                                                          3
                                                                                                       perty in the European Union, which will                                                               members, the subscription of more members
                                                                                                       grow next year from 15 to 25, and until 2007                                                          we can acquire.
                                                                                                       to up to 28 members states. The U.I.P.I. today                                                        Our U.I.P.I. working committees have wor-
                                                                                                       has the national associations of 20 European                                                          ked on all these issues, and our idea was to
                                                                                                       countries as members. The documentation                                                               compile their reports and comparative tables,
                                                                                                       gives a general idea of the work of the Euro-                                                         and on the occasion of our Berlin 2003 Inter-
                                                                                                       pean Union of property owners and shows                                                               national Congress to print these in a book in
                                                                                                       which topics in the future are important for                                                          order to hand it out to all our organizations-
                                                                                                       us. These topics include importance and                                                               members, as it is not only a concrete speci-
                                                                                                       value of private property for a constitutional                                                        men of U.I.P.I. work, but also a unique and
                                                                                                       state, economics strength, individual free-                                                           very useful tool for their everyday battles at
                                                                                                       dom as well as taxation and legal questions.                                                          home. Of course the task of gathering all this
                                                                                                       The reestablishment of private property                                                               information from 20 different countries was
                                                                                                       rights in countries, where they have been                                                             huge.
                                                                                                       abolished over decades has priority. Matters                                                          Especially as far as the taxation field is con-
                                                                                                       of modern building technique and manage-                                                              cerned, where gathering the absolutely cor-
Importance and Value of Private Property in Europe




                                                     Preface by the President of Haus & Grund          ment, as well as the efficiency of our organi-     By the U.I.P.I. Secretary General                  rect information is almost next to impossible,
                                                     Deutschland Rüdiger Dorn                          sations as service enterprise for our members      Stratos Paradias                                   there were colleagues who reasonably had
                                                                                                       are also part of our work.                                                                            the opinion that it is too complicated, and
                                                     The 80th anniversary of the International         I very much hope, that this documentation          Today, U.I.P.I. has five working groups,           even dangerous to try to compile comparati-
                                                     Union for Immovable Property „Union Inter-        shows its readers that private property is not     reflecting the five basic areas of it’s today      ve tables on income or capital taxation on
                                                     nationale de la Propriètè Immobilière“            only of use for its owners. It also has impor-     interests.                                         real estate property from so many different
                                                     (U.I.P.I.) and the ceremonies on the occasion     tant social functions for the citizens, which      Constitutional protection of property in each      countries!
                                                     of the XXXVII. International Congress of the      cannot be granted better by any other right.       country is a predominant issue, because real       This book is now in your hands, at your
                                                     U.I.P.I. in Berlin from the 18th to the 21st      Primary this includes the handling of limited      estate property’s legal status is regulated by     disposal. Criticism, as well corrections are
                                                     September 2003 are an opportunity to              resources, but also the support of growth and      the national legislations, and does not fall in    welcomed. So I would like to thank the Pre-
                                                     explain the importance and value of private       innovation. Private property guarantees the        the jurisdiction of the EU. Property restitu-      sident Drs. Henny Van Herwijnen and all
                                                     property in Europe. This occasion can also be     personal freedom of the individual, gives          tion to legal owners is also a vital issue for     the members of the Executive Committee of
                                                     used to make clear what goals the U.I.P.I.        sense and secures democracy and the rule of        property owners of the former Eastern Euro-        U.I.P.I., but mostly the Presidents and mem-
                                                     seeks to achieve and which high rating this       law. It also creates responsibility and gua-       pean countries.                                    bers of the Working Committees of U.I.P.I.,
                                                     organisation has today and in future. Haus &      rantees economical security. Property with its     Heavy taxation of real estate property is a        who have worked hard and with great enthu-
                                                     Grund Deutschland, the Federal Union of           variety of own social effects should not be        common problem, the next most important            siasm for this goal.
                                                     German Real Estate Owners, is therefore           undermined by its undisputed but often over-       issue for immovable property owners of             Most of all, I would like to thank „Haus &




                                                                                                                                                                                                                                                                Preface on the U.I.P.I. Book
                                                     proud to host the jubilee event of the U.I.P.I.   stressed social duty. Nobody questions the         Europe. Taxation on our properties capital         Grund, Deutchland“ and it’s President Rüdi-
                                                     in the German capital and present this docu-      right of private property in public today. The     and income is not only a fiscal, but also a        ger Dorn, for their generosity to support and
                                                     mentation to the dear readers.                    hidden attacks no matter if taken deliberate-      highly political issue in every country.           finance this edition, the first of it’s kind, as
                                                     This U.I.P.I. documentation will be of great      ly or not, have stronger effects and result in     Restrictions in the rental market (both in hou-    well as Dr. Ulrike Kirchhoff for all her eff-
                                                     interest and high information value, since the    a slow erosion of the idea of property.            sing as well as in the commercial sector) are      orts to make this book come real.
                                                     private property owners in Europe get more        Some restrictions for property may be reaso-       traditionally the most important issue to sub-     Also special thanks to my young colleague
                                                     and more under the influence of the Euro-         nable seen for themselves, but may lead to a       scribe individual property owners as mem-          Mr. Tassos Vappas, Lawyer in Athens,
                                                     pean law.                                         slow erosion of the legal institute of proper-     bers of our national organizations all over        LLM, PhD nominee in Tax Law, University
                                                     A majority of political and legal decisions is    ty, which in the end may lead to the comple-       Europe.                                            of Athens and member of the board of our
                                                     not based on national law anymore, but on         te loss of this individual right. This cannot be   Technical requirements for the construction        organization, for his valuable contribution in
                                                     decisions of the European Union. It is not yet    the intention of anybody who respects, free-       of new buildings, as well as renovation of the     the analysis, elaboration and data comparison
                                                     common knowledge that 80% of the deci-            dom, democracy and the rule of laws as             exiting ones all over Europe, concerning           on „U.I.P.I. Taxation report“, as well as Mr.
                                                     sions made by local authorities are based on      unrenouncable elements of civilized coun-          health, protection of environment, energy          Timos Tsiropoulos, translator (M. A. Trans-
                                                     European law. The theme of the congress           tries and cultures, how they have developed        conservation, lifts, electricity, transportation   lation/Department of Foreign Languages
                                                     „Individual Real Property in the European         in Europe under great effort and sometimes         are regulated today by directives of EU and        Translation and Interpreting at Ionian Uni-
                                                     Market – Freedom, Security & Responsibili-        even grief.                                        are dearly paid by the property owners.            versity-Corfu) for reviewing all documents.
                                                     ty“ reflects this development for private pro-                        Berlin, summer of 2003         Services to our Members is a crucial factor
                                                     perty owners. The congress will focus on the                     Rüdiger Dorn, President of          for the survival of our organizations. The                             The Secretary General
                                                     problems and perspectives of the private pro-                    Haus & Grund Deutschland            more efficient services we can offer to our                                 Stratos Paradias


  4                                                                                                                                                                                                                                                                             5
                                                              International Union For Real Estate                For the last 80 years, U.I.P.I. has ensured the    San Marino              Mr. Marco Severini      1964 – 1968                P. l’Homme (FR)
                                                              Property                                           solidarity of the property owner organiza-
                                                                                                                 tions of Europe, the cooperation and the con-      Serbia              Mr. Slavenko Grgurevic      1969 – 1975             Max Montchal (CH)
                                                              Founded in Paris, France in 1923, under            tinuous flow of information among them, and
                                                              the initial name «Union International de la        their international representation. U.I.P.I. is    Slovenia                  Mr. Urh Bahovec       1975 – 1976             André Druesnes (FR)
                                                              Propriété Foncière Batie» (UIPFB) – (Inter-        also vividly assisting it’s members when
                                                              national Union for Built Real Estate Proper-       asked, in their national level battles.            Spain             Mr. Luis Terradas y Soler     1976 – 1980           Giorgio Macerata (IT)
                                                              ty), by its Founder and first President            U.I.P.I. is today, throught it’s permanent offi-
                                                              Mr. Jean Larmeroux.                                ce in Brussels, focusing it’s efforts towards      Sweden                 Mrs. Ulla Johansson      1980 – 1982             André Druesnes (FR)
                                                              The current name of the organization is            the European Union and the European Parli-
                                                              „Union International de la Propriété Immo-         ament authorities, in order to influence cur-      Switzerland               Mr. Toni Dettling     1984 – 1987             Jacques Simons (BE)
                                                              bilière“ – (U.I.P.I.), as its name and Statutes    rent directives and legislation concerning real
Union Internationale de la Propriété Immobilière – U.I.P.I.




                                                              were decided in the Congress of Torremoli-         estate property.                                                                                   1987 – 1990           Michel Wynants (BE)
                                                              nos, Spain, on September 29, 1978.                 U.I.P.I. is also trying to influence authorities   The Presidents of U.I.P.I.
                                                                                                                 and public opinion of Europe through press                                                         1990 – 1998          Jean-Yves Quevy (BE)
                                                              Denomination and goals of U.I.P.I.                 conferences and Congress declarations              1923 – 1939       Mr. Jean Larmeroux (FR)
                                                                                                                 towards the deregulation and reprivatization                                                       1999 –         Stratos I. Paradias (Hellas)
                                                              Article 1 of U.I.P.I. Statutes:                    of property.                                       1939 – 1940     Mr. Bernardo A. Genco (IT)                              stratos@paradias.gr
                                                              The International Union for Private Real           The 20 current Members of U.I.P.I. are the
                                                              Estate Property is the international associa-      national organizations of property owners          1948 – 1952     Mr. Charles Ramarony (FR)
                                                              tion of national and international non-profit-     from the following countries:                                                                      The Treasurers of U.I.P.I.




                                                                                                                                                                                                                                                                    International Union For Real Estate Property
                                                              making organisations for private real estate                                                          1952 – 1965 General Pierre Hanoteau (FR)
                                                              ownership, as well as of any other organiza-                                                                                                          1956 – 1975                 Jean Bazin (FR)
                                                              tions or institutions, either national or inter-   Country                            President       1966 – 1968       Mr. Franco Bologna (IT)
                                                              national, for which the goals are (among                                                                                                              1975 – 1980           Ludwig Schmid (CH)
                                                              others) the expansion, increase and protec-        Austria                 Dr. Friedrich Noszek       1968 – 1971     Senator Luigi Davide Grossi
                                                              tion of private real estate ownership.                                                                                                       (IT)     1981 – 1982           Giorgio Macerata (IT)
                                                              The goals of the Union are the following:          Belgium                  Mr. Bernard Roberti
                                                                                                                                                                    1971 – 1974         Dr. V. E. Preusker (CH)     1982 – 1997      Eberhard Koellreuter (DE)
                                                              a) Expansion and protection of the rights of       Cuprys              Mr. Loukis Xatzikiriakou
                                                              private real estate property in its various                                                           1974 – 1987          Prof. Guido Gerin (IT)     1997 – 1999 Dr. Hans-Walter Besser (DE)
                                                              forms;                                             Czechia                 RNDr. Tom Simecek
                                                                                                                                                                    1987 – 1999 Prof. Lujo Toncic-Sorinj (AU)       1999 – 2000                Elmar Gratz (CH)
                                                              b) Elaboration and improvement of legal and        Estonia                       Mr. Aare Pallin
                                                              financial tools for the realisation and the pro-                                                      1999 – 2000         Ing. Attilio Viziano (IT)   2000 –                   Dr. Rudolf Steiner
                                                              tection of rights of private real estate owners;   Ireland                Mr. Stephen Faughnan                                                                                      (Switzerland)
                                                                                                                                                                    2000 –        Drs. Henny J. van Herwijnen                     steiner.law.olten@bluewin.ch
                                                              c) Incentive to purchase private real estate for   Italy          Avv. Corrado Sforza Fogliani                                            (NL)
                                                              everyone, increase and expansion, de facto                                                                             H.VanHerwijnen@planet.nl
                                                              and de jure, of private real estate in all coun-   Germany                     Mr. Rüdiger Dorn                                                       The Executive Committee of U.I.P.I.
                                                              tries of the world;                                                                                                                                   It is the governing body of U.I.P.I. and con-
                                                                                                                 Greece                   Mr. Stratos Paradias      The General Secretaries of U.I.P.I.             sists of representatives appointed by all the
                                                              d) Protection of private real estate property                                                                                                         participating organizations. The list of its
                                                              by national, international and supranational       Luxembourg                    Mr. Marc Jones       1928 – 1930     Mme. M. Chassaignon (FR)        members can be found at the end of this edi-
                                                              organisations.                                                                                                                                        tion.
                                                                                                                 The Netherlands          Mrs. Marlies Pernot       1935 – 1939     Bernardo Attilio Genco (IT)
                                                              The mission of U.I.P.I.
                                                                                                                 Norway                        Mr. Olav Vilnes      1950 – 1951               Jean Poncet (CH)      The Vice Presidents of U.I.P.I.
                                                              U.I.P.I. is the sole paneuropean body, repre-
                                                              senting internationally millions of property       Poland              Mr. Miroslav Szupowski         1951 – 1955            Georges Mellet (FR)      Pedro Garcia del Pozo                   (ES)
                                                              owners of all kinds of real estate property in
                                                              Europe.                                            Romania                  Mrs. Maria Teodoru        1956 – 1958                Jean Poncet (FR)     Jürgen Happ                            (DE)


  6                                                                                                                                                                                                                                                                                           7
                                               Edo Pirkmajer                           (SLO)      House and Commercial Rentals Committee                                                          But there are always differences between the-
                                                                                                  President: RNDr. Tom Simecek, President                                                         ory and practice. These differences are in
                                               Miroslav Szupowski                        (PL)     of Prop. Owners of Czech Republic                                                               some states bigger than in other.

                                               Attilio Viziano                            (IT)    Members’ Services Committee                                                                     2. Expropriation
                                                                                                  President: U.I.P.I. vice president Mr. Olav
                                                                                                  Vilnes, president of Norwegian property                                                         Expropriation is allowed only by law which
                                               The office of U.I.P.I. in Brussels                 owners                                                                                          regulates the conditions:
                                               The office of U.I.P.I. is today in the center of                                                                                                   The reason for an expropriation must be in
                                               Brussels (17 Rue des Fripiers, Galerie du          Technical Committee                                                                             public interest. Expropriation is not restricted
                                               Centre, Block II, bur. 216-7), Brussels 1000,      President: Michele Vigne, Vice president                                                        in this way only in Czech Republic.
                                               Belgium, Tel. + 322-218 6268, Fax + 322 218        Confedilizia                                                                                    In case of expropriation, a compensation
                                               18 07, contesalva@skynet.be. U.I.P.I.’s re-                                                                                                        must be paid. A full compensation, equal to
                                               presentative in Brussels is Mr. Salvatore          Financial Commission                                                                            the market price, must be paid in most of the
                                               Conte.                                             President: U.I.P.I. Vice president Edo Pirk-                                                    states, in some states (Greece and Germany)
                                                                                                  majer                                                                                           even fees of the lawyer who supported the
                                                                                                                                                 Report by the Vice-President of the ger-         owner in negotiating for the expropriation.
                                               The website of U.I.P.I.                                                                           man property owners association (Haus &          A fair compensation must be paid in some
                                               www.uipi.com – www.uipi.net with front                                                            Grund Deutschland), Vicepresident of             states (Cyprus and Switzerland), and less
                                               page direct links to the websites of all our                                                      U.I.P.I. and President of the constitu-          than a fair compensation is paid only in one




                                                                                                                                                                                                                                                     Protection of property in the European Union
                                               members. The website contains information                                                         tion/property restitution working commit-        state (Czech Republic).
International Union For Real Estate Property




                                               on all the members of the Executive Com-                                                          tee of U.I.P.I. Jürgen Happ                      The maturity of the compensation is very dif-
                                               mittee, the national organizations and their                                                                                                       ferent. In some states the compensation must
                                               presidents, the national reports of all the                                                       1. Guarantee of property                         be paid step by step the same time when the
                                               organizations, and other useful information.                                                                                                       property passes over (Greece, Germany). In
                                                                                                                                                 Property will be guaranteed in the European      other states the compensation must be paid
                                                                                                                                                 Union by constitution. The draft of an Euro-     within a limited time since the property pas-
                                               The International Congresses of U.I.P.I.                                                          pean Constitution from 18/07/2003 provides       sed over (after 3 months in Sweden). In other
                                               Every two years, U.I.P.I. entrusts one of it’s                                                    under title II article 17:                       states, there are cases when property owners
                                               members to organize it’s international Con-                                                                                                        must wait even for years to collect their com-
                                               gress. The 37th International Congress of                                                         „Right to property:                              pensation.
                                               U.I.P.I. is held in Berlin, on September                                                                                                           Expropriation can be demanded and enforced
                                               18-20, 2003, organised by the German Pro-                                                         1) Everyone has the right to own, use,           only by the state (government, administra-
                                               perty Owners Organization „Haus und Grund                                                         dispose of and bequeath his or her lawful-       tion, municipality), but no by a private per-
                                               Deutschland“, together with the officiall                                                         ly acquired possessions. No one may be           son. There is an exception to this in Greece,
                                               celebration for the 80 years of U.I.P.I.                                                          deprived of his or her possessions, except       where the state can expropriate land for hotel
                                               The 38th International Congress of U.I.P.I.                                                       in the public interest and in the cases and      building by a private enterprise.
                                               will be held in Oslo, Norway, in 2005.                                                            under the conditions provided for by law,        The decision on expropriation and compen-
                                                                                                                                                 subject to fair compensation being paid in       sation settles in some states a special expro-
                                                                                                                                                 a good time for their loss. The use of pro-      priation authority, in other states a judge.
                                               The Working Committees of U.I.P.I.                                                                perty may be regulated by law insofar as         The owner can turn to law court for help, if
                                                                                                                                                 is necessary for the general interest.           he thinks, that the expropriation is not legal
                                               Constitution and Property Restitution Com-                                                                                                         or the compensation is not sufficient. In most
                                               mittee                                                                                            2) Intellectual property shall be protec-        states a course of law is open.
                                               President: U.I.P.I. Vice president Mr. Jürgen                                                     ted.“
                                               Happ, vice president of Haus & Grund                                                                                                               Details are on the following list.
                                               Deutschland                                                                                       The Constitutions of the states in Europe,
                                                                                                                                                 which are already part of or will soon enter
                                               Property Taxation Committee                                                                       the European Union, are in many cases alike.
                                               President: U.I.P.I. Secr. General Mr. Stratos                                                     Sometimes it seems like the states copied the
                                               Paradias, president of Hellenic, Property                                                         regulations of other European states, especi-
                                               Federation                                                                                        ally the states in the eastern part of Europe.


 8                                                                                                                                                                                                                                                                             9
                                                                                                                                                                                                                                                                    3. Taxation




                                      CH




                                                                             x




                                                                                                                            x




                                                                                                                                                                    x




                                                                                                                                                                                                        CH




                                                                                                                                                                                                                        x




                                                                                                                                                                                                                                                x
                                                                                                                                                                                                                                                x
                                                                                                                                                                                                                                                                    The taxation upon real estate property is



                                      SW



                                                          x
                                                                 x


                                                                             x




                                                                                                                            x




                                                                                                                                                       x




                                                                                                                                                                                          3




                                                                                                                                                                                                        SW




                                                                                                                                                                                                                        x




                                                                                                                                                                                                                                                x
                                                                                                                                                                                                                                                x
                                                                                                                                                                                                                                                                    sometimes a form of an indirect expropriation
                                                                                                                                                                                                                                                                    in the European Union. The taxes increase
                                                                                                                                                                                                                                                                    continuously, particularly in the western part
                                      SP



                                                          x



                                                                             x




                                                                                                                            x




                                                                                                                                                       x




                                                                                                                                                                                                        SP




                                                                                                                                                                                                                        x




                                                                                                                                                                                                                                          x


                                                                                                                                                                                                                                                          x
                                                                                                                                                                                                                                                                    of Europe. The Constitutional Court of Ger-
                                                                                                                                                                                                                                                                    many decided already: Taxes are an uncon-
                                      SL



                                                          x



                                                                             x




                                                                                                                            x




                                                                                                                                                       x




                                                                                                                                                                              x




                                                                                                                                                                                                        SL




                                                                                                                                                                                                                        x




                                                                                                                                                                                                                                          x


                                                                                                                                                                                                                                                          x
                                                                                                                                                                                                                                                                    stitutional expropriation, if they absorb more
                                                                                                                                                                                                                                                                    than 50 % of the income (Bundesverfas-
                                      NW



                                                          x



                                                                             x




                                                                                                                            x




                                                                                                                                                       x




                                                                                                                                                                                                        NW




                                                                                                                                                                                                                        x




                                                                                                                                                                                                                                                          x
                                                                                                                                                                                                                                                                    sungsgericht, decision from 22.06.1995 –
                                                                                                                                                                                                                                                                    2 BvL 37/91).
                                      NL



                                                          x



                                                                             x




                                                                                                                            x




                                                                                                                                                       x




                                                                                                                                                                              x




                                                                                                                                                                                                        NL




                                                                                                                                                                                                                        x




                                                                                                                                                                                                                                          x


                                                                                                                                                                                                                                                          x
                                                                                                                                                                                                                                                                    4. Property Restitution in the former
                                                                                                                                                                                                                                                                    communist countries
                                      IR



                                                          x



                                                                             x




                                                                                                                            x




                                                                                                                                                                                                        IR




                                                                                                                                                                                                                        x




                                                                                                                                                                                                                                                          x
                                                                                                                                                                                                                                                                    The states in the eastern part of Europe decla-
                                                                                                                                                                                                                                                                    red that they would compensate the injustice
                                      GR



                                                          x



                                                                             x




                                                                                                                            x




                                                                                                                                                       x

                                                                                                                                                              x




                                                                                                                                                                              x




                                                                                                                                                                                                        GR




                                                                                                                                                                                                                        x




                                                                                                                                                                                                                                                          x
                                                                                                                                                                                                                                                                    of the communist regimes, but they do it in a
                                                                                                                                                                                                                                                                    very restricted way. They want to keep the
                                                                                                                                                                                                                                                                    expropriated properties and justify this by no
                                      GER



                                                          x



                                                                             x




                                                                                                                            x




                                                                                                                                                       x

                                                                                                                                                              x




                                                                                                                                                                              x




                                                                                                                                                                                                        GER




                                                                                                                                                                                                                        x




                                                                                                                                                                                                                                          x


                                                                                                                                                                                                                                                          x
                                                                                                                                                                                                                                                                    acceptable arguments: The government of
                                                                                                                                                                                                                                                                    Germany – for example – says that it cannot
                                      FIN



                                                          x



                                                                             x




                                                                                                                            x




                                                                                                                                                       x




                                                                                                                                                                                                        FIN




                                                                                                                                                                                                                        x




                                                                                                                                                                                                                                                          x
                                                                                                                                                                                                                                                                    restitute the big real estates properties becau-
                                                                                                                                                                                                                                                                    se it was not the former government of
                                      DK



                                                          x



                                                                             x




                                                                                                                            x




                                                                                                                                                       x




                                                                                                                                                                                                        DK




                                                                                                                                                                                                                        x




                                                                                                                                                                                                                                                x
                                                                                                                                                                                                                                                x
                                                                                                                                                                                                                                                                    Eastern Germany but the government of the
                                                                                                                                                                                                                                                                    Soviet Union which expropriated the bigger
                                                                                                                                                                                                                                                                    real estates in Eastern Germany just after the
                                      CZ




                                                                                                                                  x




                                                                                                                                                                        x




                                                                                                                                                                                                        CZ




                                                                                                                                                                                                                        x
Guarantee of Property in the States




                                                                                                                                                                                                                                                                                                                       Guarantee of Property in the States
                                                                                                                                                                                                                                                                    war. The arguments of the other governments
                                                                                                                                                                                                                                                                    in eastern Europe are not better. U.I.P.I. must
                                      CY



                                                          x


                                                                       x
                                                                             x




                                                                                                                                                                    x




                                                                                                                                                                                                        CY




                                                                                                                                                                                                                        x




                                                                                                                                                                                                                                                          x
                                                                                                                                                                                                                                                                    keep demanding from all these governments
                                                                                                                                                                                                                                                                    to eitherreturn these properties to their right-
                                      B



                                                          x



                                                                             x




                                                                                                                            x




                                                                                                                                                       x




                                                                                                                                                                              x




                                                                                                                                                                                                        B




                                                                                                                                                                                                                        x




                                                                                                                                                                                                                                          x


                                                                                                                                                                                                                                                          x
                                                                                                                                                                                                                                                                    ful owners, or pay fair compensation to all
                                                                                                                                                                                                                                                                    taken properties.




                                                                                                                                                                                                                  demand for expropriation by
                                      A



                                                          x



                                                                             x




                                                                                                                            x




                                                                                                                                                       x




                                                                                                                                                                                                        A




                                                                                                                                                                                                                                            x




                                                                                                                                                                                                                                                          x
                                                                                                                                                                              after the expropriation




                                                                                                                                                                                                                  tion and compensation by
                                                                                              expropriation is allowed




                                                                                                                                                                                                                  decision for expropria-
                                                                                                                                                     market price
                                                                                                                         for compensation


                                                                                                                                                     equal to the
                                                                                                                            the interest of




                                                                                                                                                                                                                    an expropriation
                                                                                                                                                     and fees of




                                                                                                                                                                                                                                                cours of law open
                                                                                                                                                     the lawyer




                                                                                                                                                                                                                    private persons
                                                                                                                                                                                                                    local or central
                                                                                                                                                                              step by step
                                                                                                                            inrestricted
                                                                             limited by law




                                                                                                                                                                                 months
                                                                                                                            the public
                                                                                                by reason of
                                                guaranteed by




                                                                                                                                                                                                                    government
                                                  constitution




                                                                                                                                                                                 years
                                                property is




                                                                                                                                                                                                                    authority
                                                                                                                                                                    payable
                                      Country




                                                                                                                                                                                                        Country




                                                                                                                                                                                                                                                  a judge
                                                                                                                                                                      less
                                                                                                                                              full




                                                                                                                                                                      fair
                                                                 law
                                                                       not




 10                                                                                                                                                                                                                                                                                                                            11
                                                                                            a) Any type of capital tax upon the owners-       law – even in countries with the most stable       the other hand all these tax burdens and con-
                                                                                            hip, the transaction or its value growth.         legislation– is the branch of law that is most-    tributions are imposed in combination so as
                                                                                                                                              ly susceptible to changes.                         to limit the possibilities of legal or illegal tax
                                                                                            b) Income tax, which is often imposed rather      The changing financial status of a country,        evasion. As already mentioned the difficulty
                                                                                            at higher tax-rates on income deriving from       the various kinds of investments and of cour-      of this venture is to be found in the classifi-
                                                                                            immovable property, than on income from           se the current objectives of a government, are     cation of the taxes. This project includes only
                                                                                            other sources.                                    only some of the reasons that testify for the      the main taxes that are governed by corre-
                                                                                                                                              fluidity of tax-law. Under these conditions,       sponding rules and aims at relevant objecti-
                                                                                            c) Transfer tax, which is imposed on real         the researcher, who hasn’t had the experien-       ves for the minimization of the afore-men-
                                                                                            estate property exclusively.                      ce in each national tax-system, is confronted      tioned problem. For the same reasons the
                                                                                                                                              with enormous difficulties, so a false result is   only taxes mentioned are those imposed at
                                                                                            d) V.A.T., which can be imposed on the cost       within range of possibility.                       national level or according to a system for-
                                                                                            of building construction as well as on the        Regardless of the afore-mentioned problems,        med in conformance with some general rules
                                                                                            transactions or on the income, deriving from      the most characteristic difficulty is the clas-    for the whole country.
                                                                                            renting.                                          sification of a huge number of different taxes
                                                                                                                                              and contributions to scientifically acceptable     Issues in taxation policy
                                          Taxation report by the Secretary General          e) Most of the municipal rates, that can be       categories such as „capital taxes“, „income
                                          of U.I.P.I. Mr. Stratos Paradias                  imposed for any reason.                           taxes“ etc. This problem is aggravating by         The social dimension of taxation
                                          Taxation data analysis                                                                              the fact that in many countries different kinds    The main reason leading the authorities to
                                          by Mr. Tassos Vappas                              f) Many other rates and contributions in          of taxes and contributions are co-levied           multiform taxation of real estate property are
                                                                                            favour of insurance organizations, national       according to the same system                       the objectives related to the social policy of
                                          Introduction                                      legal persons, even various churches.             In result, the difficulties that the researcher    the State. It can be said that the real estate
                                                                                                                                              must cope with in order to reach a common-         owner seems to have a higher taxable capa-
                                          Real Estate Property within the scope of          The combined result of these surcharges           ly acceptable and most of all useful result are    city due to his/her capital and possibly due to
Real Estate Property Taxation in Europe




                                                                                                                                                                                                                                                      Real Estate Property Taxation in Europe
                                          taxation                                          upon real estate property cannot be repres-       understandable.                                    an irrelevant income to his activity, inde-
                                          Real Estate Property, the most conservative       ented accurately at global level due to the                                                          pendently of his/her health or family condi-
                                          type of capital, holds always the interest for    mass of disparate legislations and practices.     Methodology matters                                tion that is attainable without sacrificing
                                          everyone, regardless of social status, cultural   Nevertheless, the conduct of a comparative        The method of developing such a project is         his/her leisure. The taxation for that benefit
                                          or economic level. Irrespective of the social     survey that would focus on main taxation          always essential, so that it can be compre-        satisfies the request for „horizontal equity“
                                          structural changes, real estate property still    issues concerning real estate property and        hended by the readers, particularly if they        that is equal tax treatment for persons with
                                          remains esteemed and up to now it is collec-      especially on those who have a nodal posi-        originate from various countries with entire-      comparable taxable capacity, as well as „ver-
                                          tively considered as the safest type of invest-   tion in each taxation system is always the        ly different legislative background. Princi-       tical equity“, that is appropriate tax treatment
                                          ment as well as the most acceptable sign of       objective of our taxation committee, as well      pally this survey includes most of European        for persons with different taxable capacity.
                                          credibility.                                      is a powerful and handy tool for our mem-         countries, even those that did not promulga-       The social nature of taxation is consolidated
                                          The fact that real estate property permeates      bers. Having the necessary information, they      te an updated national report of the year 2003     by the fact that any different kind of tax is
                                          the total social and financial structure of a     will then be able to exert pressure to their      or did not send any report at all. Therefore,      able to create different social objectives. An
                                          country makes all governments rethink it as       governments toward the gradual increase of        there is no updated information concerning         annual tax on the real estate property owners-
                                          the most appropriate way to promote their         all these tax burdens. Moreover, the concen-      Denmark, Finland, France, Poland and Por-          hip, aims at taxation of the capital, which is
                                          financial, administrative, social and saving      tration of all these facts and elements enables   tugal since 2000 or even since 1998. Luxem-        maintained without the corresponding risk,
                                          policies. The same practice is being followed     us to give an aggregated picture of the real      burg has never sent national reports, yet some     as well as the obstruction of exaggerated
                                          exactly by municipalities and local govern-       estate property taxation at European level,       elements of its taxation system are known          capital accumulation. The unfavourable taxa-
                                          ments, which are mostly classified in more        especially before the emerging prospect of        thanks to the study of bibliography. In the        tion of real estate property income, whether
                                          than one level.                                   the European tax integration.                     following tables, countries that have dispat-      implemented by the institution of different
                                          As such this particular practice indicates                                                          ched a national report for the year 2003 are       tax scale than by the income deriving from
                                          that real estate property remains always          The difficulties of the project                   displayed with a bold format. Contrariwise         different sources, or by the adoption of an
                                          the most burdened type of capital on inter-       International comparative studies are always      countries that have not dispatched a recent        additional tax, aims at burdening the income
                                          national level! In general, real estate pro-      complicated and might also be venturesome.        national report are displayed with an italics      which has been seemingly acquired without
                                          perty is the sole form of capital that can be     Verification of the results of such an essay      format.                                            any sacrifice of health or leisure. Donation
                                          surcharged with multiple, burdensome              can hardly be done because the practice,          Another important issue is that an internatio-     and inheritance taxes mainly target on the
                                          and sometimes practically confiscating            which is often followed by tax authorities,       nal comparative taxation report should con-        diffusion of capital at least once per genera-
                                          taxation, for instance:                           corresponds not one iota to the laws and the      tain all different kinds of taxes, so that the     tion. This goal is attained in two ways. On
                                                                                            bibliographic sources. On the other hand, tax     reader realises each national tax system. On       one hand a quite large portion of the trans-


 12                                                                                                                                                                                                                                                            13
                                                                                                                                                                                                  Contri- ment Ener-
                                          ferred capital passes on to the State as tax,      inheritance taxes, when they force the testa-




                                                                                                                                                                                                          Solidarity
                                                                                                                                                                                V.A.T. V.A.T. on Planning Environ-
                                                                                                                                                                                                           gy etc.

                                                                                                                                                                                                                       No
                                                                                                                                                                                                                       Yes
                                                                                                                                                                                                                       Yes
                                                                                                                                                                                                                       No
                                                                                                                                                                                                                       No
                                                                                                                                                                                                                                    Yes
                                                                                                                                                                                                                                    Yes
                                                                                                                                                                                                                                    Yes
                                                                                                                                                                                                                                    Yes
                                                                                                                                                                                                                                    Yes
                                                                                                                                                                                                                                              Yes
                                                                                                                                                                                                                                                ?
                                                                                                                                                                                                                                              Yes
                                                                                                                                                                                                                                              Yes
                                                                                                                                                                                                                                                ?
                                                                                                                                                                                                                                                ?
                                                                                                                                                                                                                                                ?
                                                                                                                                                                                                                                              No
                                                                                                                                                                                                                                              No
                                                                                                                                                                                                                                              Yes
                                                                                                                                                                                                                                              Yes
                                                                                                                                                                                                                                                            ?
                                                                                                                                                 Other Taxes
                                          and on the other the testator or the benefac-      tor to fragmentize his real estate property to
                                          tor is compelled to divide his property to         small parts without any perspective for pro-
                                          many recipients in order to decrease the tax.      ductive and viable development by his bene-




                                                                                                                                                                                                                       No
                                                                                                                                                                                                                       No
                                                                                                                                                                                                                       No
                                                                                                                                                                                                                       No
                                                                                                                                                                                                                       No
                                                                                                                                                                                                                                    No
                                                                                                                                                                                                                                    No
                                                                                                                                                                                                                                    Yes
                                                                                                                                                                                                                                    Yes
                                                                                                                                                                                                                                    Yes
                                                                                                                                                                                                                                              No
                                                                                                                                                                                                                                                ?
                                                                                                                                                                                                                                              No
                                                                                                                                                                                                                                              No
                                                                                                                                                                                                                                              Yes
                                                                                                                                                                                                                                                ?
                                                                                                                                                                                                                                                ?
                                                                                                                                                                                                                                              No
                                                                                                                                                                                                                                              No
                                                                                                                                                                                                                                              No
                                                                                                                                                                                                                                              No
                                                                                                                                                                                                                                                            ?
                                                                                                                                                                                                  bution
                                                                                                                                                                                                   City
                                          Another factor reinforcing the social dimen-       ficiaries. But above all, the greatest threat for
                                          sion of real estate property taxation is the       the effective capital’s propagation is the
                                          State’s capability to impel its social objecti-    transfer tax joint with capital gains tax




                                                                                                                                                                      struction actions Income

                                                                                                                                                                                                                       Yes
                                                                                                                                                                                                                       No
                                                                                                                                                                                                                       No
                                                                                                                                                                                                                       No
                                                                                                                                                                                                                       No
                                                                                                                                                                                                                                     ?
                                                                                                                                                                                                                                    No
                                                                                                                                                                                                                                    No
                                                                                                                                                                                                                                    No
                                                                                                                                                                                                                                    No
                                                                                                                                                                                                                                              Yes
                                                                                                                                                                                                                                                ?
                                                                                                                                                                                                                                              No
                                                                                                                                                                                                                                              No
                                                                                                                                                                                                                                              No
                                                                                                                                                                                                                                                ?
                                                                                                                                                                                                                                                ?
                                                                                                                                                                                                                                                ?
                                                                                                                                                                                                                                              Yes
                                                                                                                                                                                                                                              Yes
                                                                                                                                                                                                                                              Yes
                                                                                                                                                                                                                                                            Yes
                                                                                                                                                                      on Con- on Trans- Rental
                                          ves by adoption of tax-free thresholds or          because both these taxes reverse the trade




                                                                                                                                                 Taxation Upon Cost
                                          even by complete abolition of some catego-         value of immovable property and virtually




                                                                                                                                                                                                                       Yes
                                                                                                                                                                                                                       Yes
                                                                                                                                                                                                                       No
                                                                                                                                                                                                                       No
                                                                                                                                                                                                                       Yes
                                                                                                                                                                                                                                     ?
                                                                                                                                                                                                                                    No
                                                                                                                                                                                                                                    No
                                                                                                                                                                                                                                    No
                                                                                                                                                                                                                                    No
                                                                                                                                                                                                                                              Yes
                                                                                                                                                                                                                                                ?
                                                                                                                                                                                                                                              Yes
                                                                                                                                                                                                                                              Yes
                                                                                                                                                                                                                                              No
                                                                                                                                                                                                                                                ?
                                                                                                                                                                                                                                                ?
                                                                                                                                                                                                                                              Yes
                                                                                                                                                                                                                                              Yes
                                                                                                                                                                                                                                              No
                                                                                                                                                                                                                                              No
                                                                                                                                                                                                                                                            No
                                          ries of persons (married people, families with     freeze the property, prohibiting his owner by
                                          many children) or real estates (agricultural or    using it as any other investing good.
                                          forest land), protecting them for various rea-




                                                                                                                                                                                                                       Yes
                                                                                                                                                                                                                       Yes
                                                                                                                                                                                                                       No
                                                                                                                                                                                                                         ?
                                                                                                                                                                                                                       Yes
                                                                                                                                                                                                                                    Yes
                                                                                                                                                                                                                                    Yes
                                                                                                                                                                                                                                    Yes
                                                                                                                                                                                                                                    Yes
                                                                                                                                                                                                                                    Yes
                                                                                                                                                                                                                                              Yes
                                                                                                                                                                                                                                              Yes
                                                                                                                                                                                                                                              Yes
                                                                                                                                                                                                                                              Yes
                                                                                                                                                                                                                                              No
                                                                                                                                                                                                                                              Yes
                                                                                                                                                                                                                                                ?
                                                                                                                                                                                                                                              Yes
                                                                                                                                                                                                                                              Yes
                                                                                                                                                                                                                                              Yes
                                                                                                                                                                                                                                              Yes
                                                                                                                                                                                                                                                            Yes
                                                                                                                                                                       V.A.T.
                                          sons.                                              Real estate property taxation and admini-
                                                                                             strative tax processes
                                          Real estate property taxation as a factor of       Centuries ago, tax authorities all over Euro-




                                                                                                                                                                                                         Transfer

                                                                                                                                                                                                                       Yes
                                                                                                                                                                                                                       Yes
                                                                                                                                                                                                                       Yes
                                                                                                                                                                                                                       Yes
                                                                                                                                                                                                                       Yes
                                                                                                                                                                                                                                    Yes
                                                                                                                                                                                                                                    Yes
                                                                                                                                                                                                                                    Yes
                                                                                                                                                                                                                                    Yes
                                                                                                                                                                                                                                    Yes
                                                                                                                                                                                                                                              Yes
                                                                                                                                                                                                                                              Yes
                                                                                                                                                                                                                                              Yes
                                                                                                                                                                                                                                              Yes
                                                                                                                                                                                                                                              No
                                                                                                                                                                                                                                              Yes
                                                                                                                                                                                                                                                ?
                                                                                                                                                                                                                                              Yes
                                                                                                                                                                                                                                              Yes
                                                                                                                                                                                                                                              Yes
                                                                                                                                                                                                                                              Yes
                                                                                                                                                                                                                                                            Yes
                                          fiscal policy                                      pe had realized how simple it was to levy a
                                          Taxation of real estate property as well as        tax on real property. Not only in the past,
                                          property itself, have a great many financial       when the State didn’t have the current control




                                                                                                                                                                                                                       Yes
                                                                                                                                                                                                                       No
                                                                                                                                                                                                                       Yes
                                                                                                                                                                                                                       Yes
                                                                                                                                                                                                                       Yes
                                                                                                                                                                                                                                    Yes
                                                                                                                                                                                                                                    Yes
                                                                                                                                                                                                                                    Yes
                                                                                                                                                                                                                                    No
                                                                                                                                                                                                                                    No
                                                                                                                                                                                                                                              Yes
                                                                                                                                                                                                                                                ?
                                                                                                                                                                                                                                              Yes
                                                                                                                                                                                                                                              Yes
                                                                                                                                                                                                                                              No
                                                                                                                                                                                                                                              Yes
                                                                                                                                                                                                                                                ?
                                                                                                                                                                                                                                              Yes
                                                                                                                                                                                                                                              Yes
                                                                                                                                                                                                                                              Yes
                                                                                                                                                                                                                                              No
                                                                                                                                                                                                                                                            Yes
                                                                                                                                                                                          Capital
                                                                                                                                                                                 Donation Gains
                                          effects in the economy of a State. The basic       apparatus (such as computers, property data
                                          excuse of tax authorities is that property taxa-   bases etc.), but also at present immovable




                                                                                                                                                 Levy On Capital




                                                                                                                                                                                                                       Yes
                                                                                                                                                                                                                       Yes
                                                                                                                                                                                                                       Yes
                                                                                                                                                                                                                       Yes
                                                                                                                                                                                                                       Yes
                                                                                                                                                                                                                                    Yes
                                                                                                                                                                                                                                    Yes
                                                                                                                                                                                                                                    Yes
                                                                                                                                                                                                                                    Yes
                                                                                                                                                                                                                                    Yes
                                                                                                                                                                                                                                              Yes
                                                                                                                                                                                                                                                ?
                                                                                                                                                                                                                                              Yes
                                                                                                                                                                                                                                              Yes
                                                                                                                                                                                                                                              Yes
                                                                                                                                                                                                                                              Yes
                                                                                                                                                                                                                                                ?
                                                                                                                                                                                                                                              Yes
                                                                                                                                                                                                                                              Yes
                                                                                                                                                                                                                                              Yes
                                                                                                                                                                                                                                              Yes
                                                                                                                                                                                                                                                            Yes
                                                                                                                                                                                  Inheri-
                                          tion is able to lead the accumulated capital to    property is the most visible and difficult,




                                                                                                                                                                                  tance-
                                          more productive use and encourages the             capital form to be encrypted. Real estate is
                                          owner to develop his property by exploiting        the clearest and easiest way of evaluation –




                                                                                                                                                                                             Muni-


                                                                                                                                                                                                                       Yes
                                                                                                                                                                                                                       Yes
                                                                                                                                                                                                                       Yes
                                                                                                                                                                                                                       Yes
                                                                                                                                                                                                                       Yes
                                                                                                                                                                                                                                    Yes
                                                                                                                                                                                                                                    Yes
                                                                                                                                                                                                                                    Yes
                                                                                                                                                                                                                                    Yes
                                                                                                                                                                                                                                    No
                                                                                                                                                                                                                                              Yes
                                                                                                                                                                                                                                                ?
                                                                                                                                                                                                                                              No
                                                                                                                                                                                                                                              Yes
                                                                                                                                                                                                                                              Yes
                                                                                                                                                                                                                                              Yes
                                                                                                                                                                                                                                                ?
                                                                                                                                                                                                                                              No
                                                                                                                                                                                                                                              Yes
                                                                                                                                                                                                                                              No
                                                                                                                                                                                                                                              Yes
                                                                                                                                                                                                                                                            Yes
                                                                                                                                                                                             cipal.
                                          it by his own means, or even selling it to         therefore property tax can be transferred or
Real Estate Property Taxation in Europe




                                                                                                                                                                                                                                                                          Real Estate Property Taxation in Europe
                                          someone capable to exploit it. Generally spe-      treasured at ease, contrary to shares, jewell-
                                          aking taxation secures the efficient allocation    ery or cash. Another powerful motive for tax




                                                                                                                                                                                                                       No
                                                                                                                                                                                                                       No
                                                                                                                                                                                                                       Yes
                                                                                                                                                                                                                       No
                                                                                                                                                                                                                       No
                                                                                                                                                                                                                                    Yes
                                                                                                                                                                                                                                    Yes
                                                                                                                                                                                                                                    No
                                                                                                                                                                                                                                    Yes
                                                                                                                                                                                                                                    No
                                                                                                                                                                                                                                              No
                                                                                                                                                                                                                                                ?
                                                                                                                                                                                                                                              No
                                                                                                                                                                                                                                              Yes
                                                                                                                                                                                                                                              No
                                                                                                                                                                                                                                              No
                                                                                                                                                                                                                                                ?
                                                                                                                                                                                                                                              No
                                                                                                                                                                                                                                              Yes
                                                                                                                                                                                                                                              Yes
                                                                                                                                                                                                                                              Yes
                                                                                                                                                                                                                                                            No
                                                                                                                                                                                 Housing Wealth
                                                                                                                                                                                          Net
                                          of resources.                                      authorities deriving from nature of real esta-
                                          Regardless of this consideration, the taxation     te is the ability to be or not to be – directly –




                                                                                                                                                                                 Occupied
                                          of immovable property offers a serious             the object of any kind of taxation. Tax autho-




                                                                                                                                                                                  Owner



                                                                                                                                                                                                                       No
                                                                                                                                                                                                                       Yes
                                                                                                                                                                                                                       No
                                                                                                                                                                                                                       No
                                                                                                                                                                                                                       Yes
                                                                                                                                                                                                                                     No
                                                                                                                                                                                                                                    Yeso
                                                                                                                                                                                                                                     No
                                                                                                                                                                                                                                     Yes
                                                                                                                                                                                                                                     No
                                                                                                                                                                                                                                              Yes
                                                                                                                                                                                                                                                ?
                                                                                                                                                                                                                                              Yes
                                                                                                                                                                                                                                              Yes
                                                                                                                                                                                                                                              No
                                                                                                                                                                                                                                              No
                                                                                                                                                                                                                                                ?
                                                                                                                                                                                                                                              No
                                                                                                                                                                                                                                              No
                                                                                                                                                                                                                                              Yes
                                                                                                                                                                                                                                              Yes
                                                                                                                                                                                                                                                            No
                                          inflow of money in the national funds and a        rities are therefore able to cross-check immo-
                                          considerable amplification of the gross            vable property, by using elements related to




                                                                                                                                                 Income Tax


                                                                                                                                                                                             Supple-
                                          domestic product. In some countries the            income or capital taxation systems to discou-




                                                                                                                                                                                             mental

                                                                                                                                                                                                                       No
                                                                                                                                                                                                                       No
                                                                                                                                                                                                                       Yes
                                                                                                                                                                                                                       No
                                                                                                                                                                                                                       No
                                                                                                                                                                                                                                    No
                                                                                                                                                                                                                                    Yes
                                                                                                                                                                                                                                    Yes
                                                                                                                                                                                                                                    Yes
                                                                                                                                                                                                                                    No
                                                                                                                                                                                                                                              No
                                                                                                                                                                                                                                                ?
                                                                                                                                                                                                                                              No
                                                                                                                                                                                                                                              No
                                                                                                                                                                                                                                              Yes
                                                                                                                                                                                                                                              No
                                                                                                                                                                                                                                              No
                                                                                                                                                                                                                                              No
                                                                                                                                                                                                                                              No
                                                                                                                                                                                                                                              No
                                                                                                                                                                                                                                              No
                                                                                                                                                                                                                                                            No
                                          income tax-rate exceeds 50% and donation           rage tax evasion.
                                          and inheritance taxes for some categories of       All the benefits, related to taxable purposes,




                                                                                                                                                                                                                       Yes
                                                                                                                                                                                                                       Yes
                                                                                                                                                                                                                       Yes
                                                                                                                                                                                                                       Yes
                                                                                                                                                                                                                       Yes
                                                                                                                                                                                                                                    Yes
                                                                                                                                                                                                                                    Yes
                                                                                                                                                                                                                                    Yes
                                                                                                                                                                                                                                    Yes
                                                                                                                                                                                                                                    Yes
                                                                                                                                                                                                                                              Yes
                                                                                                                                                                                                                                              Yes
                                                                                                                                                                                                                                              Yes
                                                                                                                                                                                                                                              Yes
                                                                                                                                                                                                                                              Yes
                                                                                                                                                                                                                                              Yes
                                                                                                                                                                                                                                              Yes
                                                                                                                                                                                                                                              Yes
                                                                                                                                                                                                                                              Yes
                                                                                                                                                                                                                                              Yes
                                                                                                                                                                                                                                              Yes
                                                                                                                                                                                                                                                            Yes
                                                                                                                                                                                                         Basic
                                          beneficiaries make greater mass of transfer-       act therefore indeed as counterbalance.
                                          red real estate property possible to be direc-     Undoubtedly, the evaluation difficulty is the
                                          ted to the State.                                  most serious problem tax authorities must




                                                                                                                                                                                                                                                            Un. Kingdom
                                          Naturally the above mentioned sentence isn’t       cope with. When the value is detectable, for




                                                                                                                                                                                                                                              Netherlands




                                                                                                                                                                                                                                              Switzerland
                                                                                                                                                                                                                       Czech Rep.




                                                                                                                                                                                                                                              Luxemburg
                                                                                                                                                 Country




                                                                                                                                                                                                                       Denmark



                                                                                                                                                                                                                                    Germany
                                          unambiguous. So, excessive taxation of             instance in case of real estate sales, difficul-




                                                                                                                                                                                                                                              Romania
                                                                                                                                                                                                                                              Portugal

                                                                                                                                                                                                                                              Slovenia
                                                                                                                                                                                                                       Belgium




                                                                                                                                                                                                                                              Norway
                                                                                                                                                                                                                                    Finland




                                                                                                                                                                                                                                              Sweden
                                                                                                                                                                                                                       Austria

                                                                                                                                                                                                                       Cyprus




                                                                                                                                                                                                                                    France




                                                                                                                                                                                                                                              Poland
                                                                                                                                                                                                                                    Greece
                                                                                                                                                                                                                                    Ireland




                                                                                                                                                                                                                                              Spain
                                          immovable property discourages a large part        ties are limited, but as far as ownership or




                                                                                                                                                                                                                                              Italy
                                          of the population from directing their capital     inheritance taxation is concerned – where the
                                          to real estate property which is always one of     property value is not obvious, evaluation
                                          the most stable and controlled forms of pro-       becomes really difficult. Even though many
                                          perty, engaging them to the hunt of the more       calculation systems have been invented – as
                                          productive – and less taxed – form of invest-      it will be shown later on in this project – they
                                          ment which in most cases is extremely ven-         are still too complicated and demand there-
                                          turous and always demands specialized              fore considerable time and manpower to
                                          knowledge. It is however possible for the          function properly. Only a single evaluation
                                          capital not to be directed to a productive use     method, used nowadays by many countries
                                          but to overspending and over-consumption of        can cope with the difficulties of all types of
                                          goods.                                             real estate property taxes.
                                          Similar negative effects could be had by


 14                                                                                                                                                                                                                                                                                15
                                          Income Taxation                                    status – cannot be fulfilled, as long as lower                     problem is that some countries’s7 tax autho-        Greece (and according to our information in
                                                                                             and higher incomes are taxed according to                          rities impose additional taxes on r.e.p. inco-      year 2000 also) in Denmark and in Switzer-
                                          Nature and form                                    the same tax-rate.                                                 me that essentially change the final taxation.      land.
                                          The income tax is the impost, which affects        Two Scandinavian countries, Finland and                            These taxes should be taken into considera-         On any occasion the presumed rental is the
                                          the income received by a person or a compa-        Norway are the only ones in Europe that have                       tion to help us shape a precise image. More-        basis of assessment. The methods of setting
                                          ny during a specific period of time. Accor-        adopted a real estate property’s income tax                        over, in some other countries V.A.T is impo-        that tax basis by the national Tax Authorities
                                          ding to the tax law, income taxation is justi-     system with a single tax rate, which is consi-                     sed on some kinds of rental income, usually         will not be examined, as it is a complicated
                                          fied by the fact that income represents – more     dered an „investment income“. What’s more,                         on commercials rentals.                             issue that varies in every country.
                                          than any other tax – the purchasing power of       a tax-free threshold does not exist in these                       The following relevant chart shows how a
                                          taxpayer. On the other hand, income tax is         countries and the real estate’s property inco-                     person with an annual income of 25.000,
                                          also considered to be a powerful means of          me rate is 29% and 28 % correspondingly.                           50.000 and 100.000 Euro correspondingly,
                                          fiscal1 and social2 policy employment. The-        In many countries there is also a tax exemp-                       will be taxed in each country. We consider
                                          refore, there is no country without income         tion for an income part while in other coun-                       that his whole income derives from his real
                                          tax.                                               tries there isn’t such a favourable adjustment.                    estate property. In this chart the income tax
                                          The first country, which levied income tax,        Characteristic is the example of Netherlands,                      as well as all the additional taxes has been
                                          was UK, in 1779. This specific income tax          where the tax authorities tax even the smal-                       included. On the other hand, V.A.T. is not
                                          was withdrawn some years later, but was            lest income with a rate of 32,35%.                                 included because its imposition does not
                                          levied again in 1842. In all the other Europe-     The opposite occurs in Greece, where there                         apply to the whole r.e.p. income and therefo-
                                          an countries, income tax was introduced at         is a total tax – exemption for income up to                        re its representation in this chart would give
                                          the end of 19th century.                           12.095 Euro. Correspondingly, in Sweden                            a misleading image.
                                          It has been proved that there are three main       the annual income up to 28.130 Euro, is                            The figures indicate that Poland has the most
                                          income tax systems:                                encumbered only by 200 Euro. On the other                          strict taxation as far as the high and middle
                                                                                             hand looking at the highest tax-rate of each                       incomes are concerned, and Switzerland the
                                          I. Incomes derived from different sources          country6 – which interests our members,                            most temperate one. On the other hand Bel-
Real Estate Property Taxation in Europe




                                                                                                                                                                                                                                                                     Real Estate Property Taxation in Europe
                                             are taxed on different tax-rates. (e.g. rent    more – we could say that in Slovenia, a rat-                       gium has the most intolerable taxation as far
                                             income, salaries etc.)                          her low income (37.800 Euro), is taxed with                        as the low incomes is concerned.
                                                                                             the rather high tax-rate of 50%. The exact
                                          II. The same tax is imposed on every gross         opposite occurs in Switzerland where the                           Taxation on dominical habitation (owner
                                              income regardless of its different sources,    highest tax-rate (25,73 %), which is the                           occupied housing income taxation)
                                              and                                            lowest European rate, is applicable to inco-                       At this point of the study it is essential to
                                                                                             mes above 302.500 Euro.                                            refer to the taxation on dominical habitation,
                                          III. A system, which combines the characte-                                                                           that is the taxation levied on property
                                               ristics of the two above, mentioned           The examples of chart „Total income taxa-                          owners, when they abide within their proper-
                                               systems.                                      tion of R.E.P. in Europe“                                          ty. This tax has to be examined along with the
                                                                                             In order to understand the different income-                       income taxation, as private property is taxa-
                                          Income tax in Europe                               tax systems, it would be useful to study some                      ble for the ratepayer, because he/she benefits
                                          According to national reports, the three           simple examples, which will not only                               from rentals a tenant would pay in order to
                                          above mentioned tax systems are applicable         demonstrate the particularities of the income                      lease the original domicile.
                                          in European countries. In some countries,          tax system in each country, but also will help                     Therefore the tax on dominical habitation is
                                          r.e.p. income is taxed as an investment inco-      us compare the systems amongst them. The                           usually levied in relation to the presumed
                                          me on different tax-rates, while in other                                                                             rental that the taxpayer ought to pay, if he
                                          countries additional taxes are imposed on the                                                                         leased his/her residence. As far as the com-
                                          rent income.                                                                                                          ponents of this tax are concerned, it can be
                                          Looking at the following table3, we can easi-                                                                         said that in Belgium, Norway (and according
                                          ly see that all countries except for Finland                                                                          to our information in year 2000 also) in Fran-
                                          and Norway, institute a graduated tax                                                                                 ce, the presumed rental of the dominical resi-
                                          system with different tax-rates imposed on                                                                            dence is added to the annual income and then
                                          different income amounts. The number of            1   In most cases the purpose is solidification or even develop-
                                                                                                 ment of economy                                                it is taxed at the same level indicating that the
                                          stages varies from 34 to 185 . It is obvious       2   This could be the challenging of maldistribution of wealth     benefit from dominical habitation is conside-
                                          that if the income tax scale has few levels, the   3   see Tables „Income Tax in EU countries“ and „Income Tax
                                                                                                 in non EU European countries“                                  red as additional income. Of course in some
                                          tax’ main purpose – which is the impost levy       4   Sweden, Ireland and Croatia                                    cases dominical habitation is taxed in relation
                                                                                             5   Luxembourg
                                          to be proportional to the taxpayer’s economic      6   see chart „Highest income tax-rates in Europe“                 to different components, for instance in            7   France, Germany, Greece, Cyprus and Poland



 16                                                                                                                                                                                                                                                                           17
                                                                                                                                                                                                                                                               a According to 2000 report, there is an additional tax for soli-




                              Add.




                                                                 5%




                                                                                                                                                                                        22 % j




                                                                                                                                                                                                 Add.
                                                                                                                                                                                                                                                                 darity called „Solidaritätszuschlag“
                                                                                                                                                                                                                                                               b This tax is called „Contribution Sociale Généralisée“ and
                                                                                                                                                                                                                                                                 it is applied on any kind of income regardless of its source.
                                                                                                                                                                                                                                                                 Until recently the tax rate was 7,5% whilst until January 1st,
                                                                                                                                                                                                                                                                 1998 the tax rate was 2,9 %.


                              Rate
                                              0%
                                             10%
                                             20%
                                            +2%
                                          51,25%
                                          20-30%
                                                                              15%
                                                                              25%
                                                                              35%
                                                                              40%
                                                                                                     25%
                                                                                                     30%
                                                                                                     40%
                                                                                                     45%
                                                                                                     50%
                                                                                                     52%
                                                                                                                            15%
                                                                                                                            24%
                                                                                                                            28%
                                                                                                                            37%
                                                                                                                            45%
                                                                                                                             0%
                                                                                                                            20%
                                                                                                                            42%


                                                                                                                                                                  200 Euro
                                                                                                                                                                      20%
                                                                                                                                                                      25%


                                                                                                                                                                                         0%
                                                                                                                                                                                        19%
                                                                                                                                                                                        30%
                                                                                                                                                                                        40%




                                                                                                                                                                                                 17%
                                                                                                                                                                                                 Rate

                                                                                                                                                                                                 35%
                                                                                                                                                                                                 37%
                                                                                                                                                                                                 40%
                                                                                                                                                                                                 45%
                                                                                                                                                                                                 50%



                                                                                                                                                                                                                        15%
                                                                                                                                                                                                                        20%
                                                                                                                                                                                                                        25%
                                                                                                                                                                                                                        32%
                                                                                                                                                                                                                                                               c Contribution representative de la Taxe additionelle du droit
                                                                                                                                                                                                                                                                 de Bail" replaced by annual leasing income tax. This tax is
                                                                                                                                                                                                                                                                 applied on the r.e.p. income and is paid by the owner.
                                                                                                                                                                                                                                                               d Tax payer benefits from an abatement of 5.480 Euro in case
                                                                                                                                                                                                                                                                 of isolated persons and from an abatement of 4.350 Euro
                                                                                                                                                                                                                                                                 (per person) for married couples. This abatement increases
                                                                                                                                                                                                                                                                 accordingly for each person that depends on the tax-payer.
                              Threshold
                                          The first 6.000 Euro
                                             Next 2.700 Euro
                                             Next 1.700 Euro
                                             Next 1.700 Euro
                                            Over 34.100 Euro
                                                             ?
                                                                              The first 4.941 Euro
                                                                                 Next 6.517 Euro
                                                                                Next 17.482 Euro
                                                                                Over 28.940 Euro
                                                                                                     The first 6.730 Euro
                                                                                                     The next 2.190 Euro
                                                                                                        Next 3.800 Euro
                                                                                                       Next 16.540 Euro
                                                                                                       Next 14.610 Euro
                                                                                                       Over 43.870 Euro
                                                                                                                            The first 4.000 Euro
                                                                                                                               Next 9.800 Euro
                                                                                                                              Next 12.000 Euro
                                                                                                                              Next 19.200 Euro
                                                                                                                              Over 45.000 Euro
                                                                                                                            The first 6.025 Euro
                                                                                                                              Next 15.770 Euro
                                                                                                                              Over 21.795 Euro


                                                                                                                                                                  First 28.130 Euro
                                                                                                                                                                   Next 17.100 Euro
                                                                                                                                                                  Over 45.230 Euro
                                                                                                                                                                                   ?
                                                                                                                                                                  The first 550 Euro
                                                                                                                                                                    Next 7.620 Euro
                                                                                                                                                                    Next 8.080 Euro
                                                                                                                                                                  Over 16.250 Euro




                                                                                                                                                                                                 The first 6.300 Euro
                                                                                                                                                                                                          Threshold

                                                                                                                                                                                                    Next 6.300 Euro
                                                                                                                                                                                                    Next 6.300 Euro
                                                                                                                                                                                                    Next 6.300 Euro
                                                                                                                                                                                                   Next 12.600 Euro
                                                                                                                                                                                                   Over 37.800 Euro



                                                                                                                                                                                                                        Czech Republicm The first 3.400 Euro
                                                                                                                                                                                                                                           Next 3.400 Euro
                                                                                                                                                                                                                                           Next 3.600 Euro
                                                                                                                                                                                                                                          Over 10.400 Euro
                                                                                                                                                                                                                                                               e It can’t exceed the main income tax. The increased rate is
                                                                                                                                                                                                                                                                 applicable on the rent income for houses over 300 m². Until
                                                                                                                                                                                                                                                                 January 2000 tax-rates were 3 % and 6 % correspondingly.
                                                                                                                                                                                                                                                               f These rates are applicable upon the annual income of per-
                                                                                                                                                                                                                                                                 sons younger than 65 years old. For older persons, the first
                                                                                                                                                                                                                                                                 two rates are 14,45 % and 19,95 % correspondingly
                                                                                                                                                                                                                                                               g According to 2000 report, there are differing thresholds and
                                                                                                                                                                                                                                                                 allowances for single, widowed and married persons. The-
                                                                                                                                                                                                                                                                 re are also many allowances for child dependents, senior
                                                                                                                                                                                                                                                                 citizens income aged 65-74 and 75 and older etc. For single
                                                                                                                                                                                                                                                                 or widowed persons the first 6.025 Euro of income is tax-
                                                                                                                                                                                                                                                                 free, the standard rate is payable on income up to 21.795
                                                                                                                                                                                                                                                                 Euro and the balance is payable at the highest rate. In cases
                                          Luxemburg




                                                                                                     Belgiumd
                                                                                                                                                                                                                                                                 of married persons the first 12.051 Euro of income is free,
                              Country




                                                                                                                                                                                                 Country
                                                                                                                                                                                   Romania
                                                                              Portugal




                                                                                                                                                                                                 Slovenia
                                                                                                                                                   Irelandg




                                                                                                                                                                  Sweden
                                                                                                                                                                                                                                                                 the standard rate is payable on income up to 35.897 Euro
                                                                 Cyprus




                                                                                                                                                                                   Poland
                                                                                                                            Spain
                                                                                                                                                                                                                                                                 (where there is one income) or 43.590 Euro (where both
                                                                                                                                                                                                                                                                 spouses have incomes) and the balance is payable at the
                                                                                                                                                                                                                                                                 higher rate.
                                                                                                                                                                                                                                                               i Tax on investment income (income taxation of individuals)
                                                                                                                                                                                                                                                                 is levied at this flat rate if there is taxable rental income,
                                                                                                                                                                                                                                                                 capital gains, income from real property or from forestry.
                              Add.




                                                                 5,5%a




                                                                                                      10%b
                                                                                                     +2,5%c




                                                                                                                              1,5%
                                                                                                                            or 3%e




                                                                                                                                                                                                 Add.
                                                                                                                                                                                                                                                                 Correspondingly, corporate income tax (taxation of real
                                                                                                                                                                                                                                                                 estate companies, housing companies etc) is levied at the
                                                                                                                                                                                                                                                                 same flat rate if there is taxable income, which – in practi-
                                                                                                                                                                                                                                                                 ce – is rare.
                                                                                                                                                                                                                                                               j This tax should be paid by utility rooms owners if their year-
                                           0%
                              Rate

                                          21%
                                          31%
                                          41%
                                          50%
                                                                 19,9-48,5%
                                                                                 0%
                                                                              41,3%
                                                                              47,3%
                                                                              58,3%
                                                                                                      0%
                                                                                                     24%
                                                                                                     33%
                                                                                                     43%
                                                                                                     48%
                                                                                                     54%
                                                                                                                             0%
                                                                                                                            15%
                                                                                                                            30%
                                                                                                                            40%

                                                                                                                                                   32,35%
                                                                                                                                                   37,85%
                                                                                                                                                      42%
                                                                                                                                                      52%

                                                                                                                                                                  22%
                                                                                                                                                                  40%

                                                                                                                                                                                   29%
                                                                                                                                                                                   29 %
                                                                                                                                                                                   31%
                                                                                                                                                                                   39%
                                                                                                                                                                                   45%
                                                                                                                                                                                   23%




                                                                                                                                                                                                   Rate
                                                                                                                                                                                                     0%
                                                                                                                                                                                                  3,28%
                                                                                                                                                                                                  6,36 %
                                                                                                                                                                                                 10,10 %
                                                                                                                                                                                                 13,37 %
                                                                                                                                                                                                 15,02%
                                                                                                                                                                                                 19,86%
                                                                                                                                                                                                 25,73%

                                                                                                                                                                                                                        28 %
                                                                                                                                                                                                                                                                 ly income is higher than 20.000 Euro.
                                                                                                                                                                                                                                                               k Due to the federal structure of Switzerland, there are at least
                                                                                                                                                                                                                                                                 26 different calculation and taxation methods. The table
                                                                                                                                                                                                                                                                 above reflects the current situation in the canton of Berne.
                                                                                                                                                                                                                                                                 In these rates there are the municipal rates included as well
                                                                                                                                                                                                                                                                 as the church tax.
                                                                                                                                                                                                                                                               l In income deriving from other sources, the following inco-
                              Threshold
                                          The first 3.640 Euro
                                             Next 3.630 Euro
                                            Next 14.530 Euro
                                            Next 29.070 Euro
                                            Over 50.875 Euro
                                                                 ?
                                                                              The first 4.060 Euro
                                                                                 Next 13.900 Euro
                                                                                 Next 14.500 Euro
                                                                                Over 32.460 Euro
                                                                                                     The first 3.998 Euro
                                                                                                        Next 5.896 Euro
                                                                                                        Next 8.654 Euro
                                                                                                       Next 14.058 Euro
                                                                                                        Next 8.506 Euro
                                                                                                       Over 44.980 Euro
                                                                                                                            The first 8.400 Euro
                                                                                                                               Next 5.000 Euro
                                                                                                                              Next 10.000 Euro
                                                                                                                              Over 23.400 Euro

                                                                                                                                                              The first
                                                                                                                                                          15.331 Euro
                                                                                                                                                     Next 12.516 Euro
                                                                                                                                                     Next 19.897 Euro
                                                                                                                                                     Over 47.745 Euro
                                                                                                                                                              The first
                                                                                                                                                          41.760 Euro
                                                                                                                                                     Over 41.760 Euro
                                                                                                                                                   Total R.E.P. income
                                                                                                                                                              The first
                                                                                                                                                          15.000 Euro
                                                                                                                                                     Next 14.000 Euro
                                                                                                                                                      Next 3.600 Euro
                                                                                                                                                     Next 37.400 Euro
                                                                                                                                                     Over 70.000 Euro




                                                                                                                                                                                                         Threshold
                                                                                                                                                                                                             The first
                                                                                                                                                                                                          7.500 Euro
                                                                                                                                                                                                    Next 4.600 Euro
                                                                                                                                                                                                    Next 6.050 Euro
                                                                                                                                                                                                   Next 12.100 Euro
                                                                                                                                                                                                   Next 18.150 Euro
                                                                                                                                                                                                   Next 12.100 Euro
                                                                                                                                                                                                   Next 60.500 Euro
                                                                                                                                                                                                  Over 302.500 Euro
                                                                                                                                                                                                 Total R.E.P. income
                                                                                                                                                                                                                                                                 me tax scale is applied:
                                                                                                                                                                                                                                                                 Class 1                                   Class 2        Rates
                                                                                                                                                                                                                                                                 The first 2.805 Euro                            –          0%
                                                                                                                                                                                                                                                                     Next 36.220 Euro       The first 41.732 Euro        35,8 %
                                                                                                                                                                                                                                                                     Next 62.195 Euro            Next 59.488 Euro        49,3 %
R.E.P. Income Tax in Europe




                                                                                                                                                                                                                                                                                                                                   R.E.P. Income Tax in Europe
                                                                                                                                                                                                                                                                  Over 10.1220 Euro            Over 101.220 Euro         55,3 %
                                                                                                                                                                                                                                                               m The Income Tax, respective basis for the tax is calculated
                                                                                                                                                                                                                                                                 according to the total deriving from all activities reduced
                                                                                                                                                                                                                                                                 by allowable deductions, namely: costs. necessary to achie-
                                                                                                                                                                                                                                                                 ve, assure and keep the income (no costs of investments,
                                                                                                                                                                  United Kingdom




                                                                                                                                                                                                                                                                 increasing the value of the real property), appreciation of the
                                                                                                                                                                                                                                                                 property, insurance, real estate property tax, 1.164




                                                                                                                                                                                                 Switzerland k
                                                                                                                                                   Netherlandsf




                                                                                                                                                                                                                                                                 Euro/year, 7.200 Euro/year/for a child, 6.620 Euro/year if
                                                                                                                                                                                                                                                                 the wife (husband) of the tax payer does not have her (his)
                              Country




                                                                                                                                                                                                 Country
                                                                 Germany
                                                                              Denmark




                                                                                                                                                                                   Finland i




                                                                                                                                                                                                                        Norwayl
                                                                                                                                                                                                                                                                 own income, from 218 Euro to 1.526 Euro/year for handi-
                                          Austria




                                                                                                     France




                                                                                                                            Greece




                                                                                                                                                                                                                                                                 capped citizens, 348 Euro/year for a student.
                                                                                                                                                                                   Italy




 18                                                                                                                                                                                                                                                                                                                                      19
                                                                                                                                                                                                                           Capital consists of various patterns; cash,        particular tables, we can realize how impres-




                                                       Tax Exempt Limit




                                                                                              Annual income lower than 3.985 Euro
                                                                          a




                                                                                                                                             ?
                                                                                       ?




                                                                                                                                    200 m²




                                                                                                                                                                                 None
                                                                                                                                                                                 None
                                                                                                                                                                                                                           jewellery, art works, stocks, and real estate.     sive capital taxation on real estate property is
                                                                                                                                                                                                                           The taxes concerning the immovable proper-         in Europe. Indicative of this practice is the
                                                                                                                                                                                                                           ty are the most common types of capital taxa-      fact that all the European countries adopt at
                                                                                                                                                                                                                           tion all over Europe. They can be formed in        least two of these taxes and in many cases –
                                                                                                                                                                                                                           three main ways.                                   such as in Scandinavian countries – all of the
                                                                                                                                                                                                                           The most characteristic type of real estate        three forms of capital taxation are adopted.
                                                                                                                                                                                                                           property capital taxation is the ownership
                                                                                                                                                                                                                           taxation, which refers to an annual tax,
                                                                                                                                                                                                                           regardless of the countries’ differences.
                                                                                                                                                                                                                           Ownership taxation is being imposed by dif-
                                                                                                                                                                                                                           ferent tax authorities and according to
                                                                                                                                                                                                                           various systems. It is always an annual tax
                                                                                                                                                                                                                           calculated on the owned real estate’s proper-
                                                                                                                                                                                                                           ty value or on the estimated income even if
Owner Occupied Housing Income Taxation in Europe




                                                                                                                                                                                                                           it does not correspond to the real one. The
                                                                                                                                                                                                                           thresholds and rates of this tax do not follow
                                                           Calculation Base
                                                                           No
                                                       Estimated leasing value
                                                                           No
                                                                           No


                                                       Estimated leasing value


                                                                           No
                                                       Estimated leasing value
                                                                           No

                                                                           No
                                                       Estimated leasing value

                                                                          Nod
                                                                             ?
                                                                             ?

                                                                           No
                                                                           No
                                                                             ?
                                                                           No
                                                                           No


                                                                           No
                                                       Estimated leasing value




                                                       Estimated leasing value
                                                       Estimated leasing value
                                                                                                                                                                                                                           some general rules; as a result one could deal
                                                                                                                                                                                                                           with progressive scales, single rates, even
                                                                                                                                                                                                                           special rates imposed per measure of area.
                                                                                                                                                                                                                           Donation and inheritance taxes are the
                                                                                                                                                                                                                           second and most common type of capital
                                                                                                                                                                                                                           taxation. This category applies almost eve-
                                                                                                                                                                                                                           rywhere in Europe and follows – with few
                                                                                                                                                                                                                           exceptions – exactly the same rules.
                                                                                                                                                                                                                           At this point, it should be mentioned that
                                                                                                                                                                                                                           donation and inheritance taxes are imposed
                                                                                                                                                                                                                           by the central tax authorities, they are orga-
                                                       Rate

                                                                          Income Tax


                                                                                       1-3%

                                                                                              Income Tax

                                                                                                                                    3,5%




                                                                                                                                                      ?
                                                                                                                                             Income Tax




                                                                                                                                                                                       ?
                                                                                                                                                                                 60-100%
                                                                                                                                                                                                                           nized with progressive scales and can be
                                                                                                                                                                                                                           diversified under the relation terms between
                                                                                                                                                                                                                           testator and inheritor or benefactor and reci-
                                                                                                                                                                                                                           pient correspondingly. This taxes’s category
                                                                                                                                                                                                                           is imposed exactly as any other form of capi-




                                                                                                                                                                                                                                                                                                                                 Capital Taxation in general
                                                                                                                                                                                                                           tal that can be inherited or donated.
                                                                                                                                                                                                                           The third type of capital taxation on real esta-
                                                       United Kindom


                                                                                                                                                                                                                           te property is the capital gains tax. General
                                                                                                                                                                                                                           rules on the nature of this tax cannot be
                                                       Netherlands




                                                       Switzerland
                                                       Luxemburg
                                                       Denmarkb




                                                                                                                                                                                                                           drawn. The objective of this tax is the capi-
                                                       Country




                                                       Germany




                                                       Romania
                                                       Portugal

                                                       Slovenia
                                                       Belgium




                                                       Francec




                                                       Norway
                                                       Finland




                                                       Sweden
                                                       Austria




                                                                                                                                                                                                                           tal value increase especially during the peri-
                                                       Cyprus




                                                       Poland
                                                       Ireland
                                                       Greece
                                                       Czech




                                                       Spain
                                                       Italy




                                                                                                                                                                                                                           od that has elapsed between the time of the
                                                                                                                                                                                                                           capital’s purchase and the time of its sale.
                                                                                                                                                                                                                           This tax can be imposed by a single rate or
                                                                                                                                                                                                                           according to a progressive scale. In most
                                                                                                                                                                                                                           countries, capital gains are taxable according
                                                                                                                                                                                                                           to the system of income tax, which is collec-
                                                                                                                                                                                                                           ted with the latter taxation type.
                                                                                                                                                                                                                           The following tables present the capital taxa-
                                                   a   There is a standard abatement of 3.953 Euro, though limi-                                  b       The taxation upon the estimated leasing value of owner-
                                                       ted to the amount of cadastral income, that is granted to the                                      occupied dwellings will be in use until 31st December 1999.      tion in Europe in figures and therefore give
                                                       owner who occupies personally the residence. The standard                                  c       In France, „taxe d’ habitation“ is applied to all occupiers,     the reader the opportunity to have a picture of
                                                       abetment is raised at 339 Euro for spouses and each person                                         owners or not owners
                                                       that depends on the taxpayer. In case of a handicapped per-                                d       For the first residence only. Additional residential dwellings   this tax’ category at one glance. Further
                                                       son, the deduction is still raised at 329 Euro per handicap-                                       are assessed as income on a sliding scale and on a basic         information is presented by the analytical
                                                       ped person. When the taxpayer is handicapped, he/she has                                           taxable amount increased by a third.
                                                       the right to an additional increase or 329 Euro.                                                                                                                    tables in the following pages. Studying these


  20                                                                                                                                                                                                                                                                                                                                   21
     Total Taxation of R.E.P. Income in Europe
22




     The highest Income Tax-Rates in Europe
23
                                                                                                                                                      Capital Gains Tax

                                                                                                                                                                                               Collection
                                                                                                                                                                                                 System




                                                                                                                                                                                                                                                                                                I.
                                                                                                                                                                                                        I.

                                                                                                                                                                                                                         I.
                                                                                                                                                                                                                      I. T.
                                                                                                                                                                                                                         I.
                                                                                                                                                                                                                      I. T.
                                                                                                                                                                                                                      I. T.
                                                                                                                                                                                                                      I. T.


                                                                                                                                                                                                                                                          I.
                                                                                                                                                                                                                                                       I. T.
                                                                                                                                                                                                                                                           ?




                                                                                                                                                                                                                                                                                  I. T.
                                                                                                                                                                                                                                                                                      ?
                                                                                                                                                                                                                                                                        I.




                                                                                                                                                                                                                                                                                             I. T.




                                                                                                                                                                                                                                                                                                                  I.
                                                                                                               Wohnungseigentum
                                                                                                               und Wohnungs-




                                                                                                                                                                                               No




                                                                                                                                                                                                                                                                                                          No
                                                                                                                                                                                                                                               No




                                                                                                                                                                                                                                                                             No
                                                                                                               eigentümer




                                                                                                                                                                                                                                                                                                                          Capital Taxation on Real Estate Property in Europe – Summary Table
                                                                                                                                                                                                   System




                                                                                                                                                                                                                      S. R.
                                                                                                                                                                                                                      P. S.




                                                                                                                                                                                                                                                                                             P. S.
                                                                                                                                                                                                     S. R.

                                                                                                                                                                                                                      S. R.
                                                                                                                                                                                                                      P. S.
                                                                                                                                                                                                                      P. S.



                                                                                                                                                                                                                      P. S.


                                                                                                                                                                                                                                                       S. R.
                                                                                                                                                                                                                                                       P. S.
                                                                                                                                                                                                                                                           ?
                                                                                                                                                                                                                                                                     I. T.




                                                                                                                                                                                                                                                                                      ?
                                                                                                                                                                                                                                                                    S. R.

                                                                                                                                                                                                                                                                                  P. S.


                                                                                                                                                                                                                                                                                             P. S.

                                                                                                                                                                                                                                                                                                I.


                                                                                                                                                                                                                                                                                                                  S. R.
                                                                                                               von Volker Bielefeld

                                                                                                               Aus der Reihe




                                                                                                                                                      Donation & Inheritance Tax

                                                                                                                                                                                                           Taxation
                                                                                                                                                                                               heritance of Spouses
                                                                                                                                                                                                                 C.
                                                                                                                                                                                                                 C.
                                                                                                                                                                                                                      S.
                                                                                                                                                                                                                      C.
                                                                                                                                                                                                                      S.
                                                                                                                                                                                                                      C.
                                                                                                                                                                                                                      C.
                                                                                                                                                                                                                      C.
                                                                                                                                                                                                                                               C.
                                                                                                                                                                                                                                               C.
                                                                                                                                                                                                                                               C.
                                                                                                                                                                                                                                               ?.
                                                                                                                                                                                                                                                                    P. S.
                                                                                                                                                                                                                                                                       S.
                                                                                                                                                                                                                                                                       C.
                                                                                                                                                                                                                                                                                  S.
                                                                                                                                                                                                                                                                                   ?
                                                                                                                                                                                                                                                                                                C.
                                                                                                                                                                                                                                                                                                C.
                                                                                                                                                                                                                                                                                             S. R.


                                                                                                                                                                                                                                                                                                                  C.
                                                                                                               Wohnen –
                                                                                                               Recht & Praxis
Union Internationale de la Propriété Immobiliere – U.I.P.I.




                                                                                                               ISBN 3-927776-61-0




                                                                                                                                                                                               Estate/In-

                                                                                                                                                                                                    INH.
                                                                                                                                                                                                     INH
                                                                                                                                                                                                                       INH
                                                                                                                                                                                                                       INH
                                                                                                                                                                                                                       INH
                                                                                                                                                                                                                       INH
                                                                                                                                                                                                                       INH




                                                                                                                                                                                                                                                                                             INH
                                                                                                                                                                                                                      INH.
                                                                                                                                                                                                                                               INH.
                                                                                                                                                                                                                                               INH.
                                                                                                                                                                                                                                               INH.
                                                                                                                                                                                                                                                INH
                                                                                                                                                                                                                                                                      S.
                                                                                                                                                                                                                                                                    INH
                                                                                                                                                                                                                                                                    INH
                                                                                                                                                                                                                                                                                  INH
                                                                                                                                                                                                                                                                                    ?
                                                                                                                                                                                                                                                                                             INH

                                                                                                                                                                                                                                                                                               S.
                                                                                                                                                                                                                                                                                                          Varies
                                                                                                                                                                                                                                                                                                           EST
                                                                                                                In Deutschland gibt es inzwischen




                                                                                                                                                                                                   System
                                                                                                                                                                                                      P. S.
                                                                                                                                                                                                      P. S.
                                                                                                                                                                                                                      P. S.
                                                                                                                                                                                                                      P. S.
                                                                                                                                                                                                                      S. R.
                                                                                                                                                                                                                      P. S.
                                                                                                                                                                                                                      P. S.
                                                                                                                                                                                                                      P. S.
                                                                                                                                                                                                                                               P. S.
                                                                                                                                                                                                                                               S. R.
                                                                                                                                                                                                                                               P. S.
                                                                                                                                                                                                                                               P. S.
                                                                                                                                                                                                                                                                    INH
                                                                                                                                                                                                                                                                    P. S.
                                                                                                                                                                                                                                                                    S. R.
                                                                                                                                                                                                                                                                                  P. S.
                                                                                                                                                                                                                                                                                      ?
                                                                                                                                                                                                                                                                                             P. S.
                                                                                                                                                                                                                                                                                             P. S.
                                                                                                                                                                                                                                                                                             INH


                                                                                                                                                                                                                                                                                                                  S. R.
                                                                                                                rund 4,5 Millionen Eigentumswoh-
                                                                                                                nungen und etwa rund 3 Millionen
                                                                                                                Wohnungseigentümer.
                                                                                                                Die meisten Wohnungseigentümer,




                                                                                                                                                                              Municipalities

                                                                                                                                                                                                   Tax-Free
                                                                                                                                                                                                        No
                                                                                                                                                                                                        No
                                                                                                                                                                                                                      No
                                                                                                                                                                                                                      No
                                                                                                                                                                                                                      No
                                                                                                                                                                                                                      No
                                                                                                                                                                                                                      Yes
                                                                                                                                                                                                                      No
                                                                                                                                                                                                                                               No

                                                                                                                                                                                                                                                            Yes
                                                                                                                                                                                                                                                              ?
                                                                                                                                                                                                                                                                    P. S.

                                                                                                                                                                                                                                                                      No
                                                                                                                                                                                                                                                                                  Yes
                                                                                                                                                                                                                                                                                    ?


                                                                                                                                                                                                                                                                                                   Yes
                                                                                                                                                                                                                                                                     No




                                                                                                                                                                                                                                                                                                  P. S.
                                                                                                                ob Selbstnutzer oder vermietender




                                                                                                                                                      Annual Taxation of R.E.P. ownership
                                                                                                                Eigentümer, sind in und mit ihrem




                                                                                                                                                                                                                                                                                                          Varies
                                                                                                                „Eigenheim in der Etage“, wie man




                                                                                                                                                                                                                                                       No




                                                                                                                                                                                                                                                                                             No




                                                                                                                                                                                                                                                                                                           No
                                                              die Eigentumswohnung auch genannt hat, zufrieden.
                                                              Dennoch bleibt es nicht aus, dass auch unter Wohnungseigentümern oder zwischen




                                                                                                                                                                                                   System
                                                                                                                                                                                                     S. T.
                                                                                                                                                                                                     S. R.
                                                                                                                                                                                                                      S. R.
                                                                                                                                                                                                                      S. T.
                                                                                                                                                                                                                      P. S.
                                                                                                                                                                                                                      S. R.
                                                                                                                                                                                                                        Yes
                                                                                                                                                                                                                      P. S.
                                                                                                                                                                                                                                               P. S.

                                                                                                                                                                                                                                                            P. S.
                                                                                                                                                                                                                                                                ?
                                                                                                                                                                                                                                                                      No
                                                                                                                                                                                                                                                                    S. R.
                                                                                                                                                                                                                                                                    S. T.
                                                                                                                                                                                                                                                                                  P. S.
                                                                                                                                                                                                                                                                                     ?


                                                                                                                                                                                                                                                                                                  Yes
                                                                                                                                                                                                                                                                                                  No
                                                              ihnen und dem Verwalter Differenzen oder sogar Streitigkeiten auftreten.
                                                              Für diese Fälle ist es immer gut, wenn man sich in seinen Rechten und Pflichten aus-
                                                              kennt, die im Bereich des Wohnungseigentums durch das Gesetz, durch Vereinbarun-
                                                              gen und durch Beschlüsse der Wohnungseigentümer geregelt sind.




                                                                                                                                                                                                   Tax-Free



                                                                                                                                                                                                                      Yes



                                                                                                                                                                                                                                  Yes
                                                                                                                                                                                                                                  Yes


                                                                                                                                                                                                                                               Yes



                                                                                                                                                                                                                                                               ?
                                                                                                                                                                                                                                                                    S. T.
                                                                                                                                                                                                                                                                     Yes



                                                                                                                                                                                                                                                                                       ?


                                                                                                                                                                                                                                                                                                  N. A.
                                                                                                                                                                                                                                                                                                   Yes
                                                                                                                                                                                                                                                                                                          No
                                                              Die vorliegende Broschüre will die Wohnungseigentümer mit den wichtigsten dieser




                                                                                                                                                        National
                                                              Regelungen vertraut machen.




                                                                                                                                                                                                   No
                                                                                                                                                                                                   No


                                                                                                                                                                                                                             No
                                                                                                                                                                                                                             No



                                                                                                                                                                                                                                          No


                                                                                                                                                                                                                                                       No
                                                                                                                                                                                                                                                       No




                                                                                                                                                                                                                                                                             No
                                                                                                                                                                                                                                                                                  No


                                                                                                                                                                                                                                                                                             No




                                                                                                                                                                                                                                                                                                                  No
                                                              Das beginnt mit der Darstellung der gesetzlichen Definition der Begriffe Wohnungsei-
                                                              gentum, Eigentumswohnung, Teileigentum, Sondereigentum, Gemeinschaftseigentum




                                                                                                                                                                                                   System



                                                                                                                                                                                                                      P. S



                                                                                                                                                                                                                                  S. R.
                                                                                                                                                                                                                                  YES


                                                                                                                                                                                                                                               P. S.



                                                                                                                                                                                                                                                               ?
                                                                                                                                                                                                                                                                     No
                                                                                                                                                                                                                                                                    P. S.



                                                                                                                                                                                                                                                                                       ?


                                                                                                                                                                                                                                                                                                  P. S.
                                                                                                                                                                                                                                                                                                  S. R.
                                                                                                                                                                                                                                                                                                          Yes
                                                              und erläutert damit, was dem Einzelnen allein oder allen Eigentümern gemeinsam
                                                              gehört, und führt über Zahlungs-, Instandhaltungs- und Gebrauchspflichten sowie der
                                                              Verwalterpflichten bis hin zur Darstellung des Rechtsweges, wenn eine gütliche Eini-
                                                              gung bei Streitigkeiten nicht möglich ist und das Gericht eingeschaltet werden muss.
                                                              Diese Broschüre ist kein juristischer Kommentar, sondern soll in einer für alle Leser




                                                                                                                                                                                                                      Czech Republic




                                                                                                                                                                                                                                                                                                          United Kindom
                                                              verständlichen Form zu einer besseren Information der Wohnungseigentümer beitragen.




                                                                                                                                                                                                                                                                    Netherlands




                                                                                                                                                                                                                                                                                                          Switzerland
                                                                                                                                                                                                                                               Luxemburg
                                                                                                                                                      Country




                                                                                                                                                                                                                      Denmark



                                                                                                                                                                                                                      Germany




                                                                                                                                                                                                                                                                                  Romania
                                                                                                                                                                                                                                                                                  Portugal


                                                                                                                                                                                                                                                                                             Slovenia
                                                              Erhältlich bei




                                                                                                                                                                                                            Belgium




                                                                                                                                                                                                                                                                    Norway
                                                                                                                                                                                                                      Finland




                                                                                                                                                                                                                                                                                             Sweden
                                                                                                                                                                                                            Austria

                                                                                                                                                                                                                      Cyprus




                                                                                                                                                                                                                      France




                                                                                                                                                                                                                                                                    Poland
                                                                                                                                                                                                                                               Greece
                                                                                                                                                                                                                                               Ireland




                                                                                                                                                                                                                                                                                             Spain
                                                                                                                                                                                                                                               Italy
                                                              Haus & Grund Deutschland – Verlag und Service GmbH
                                                              Mohrenstraße 33 · 10117 Berlin
                                                              Tel. (030) 2 02 16-204
                                                              Fax (030) 2 02 16-580




  24                                                                                                                                                                                                                                                                                                                                     25
                                                 The theoretic basis                               tes, have practically no chance to obtain a




                                                                                                                                                                                                                 Then the calculation was accurate enough




                                                                                                                                                                                                                                                            and some times correspond to 1-0,1 %




                                                                                                                                                                                                                                                            inexpensive and popular areas the estima-
                                                                                                                                                                                                                                                            90-100 % of the market value while in the
                                                                                                                                                                                                                                                            Normally must be an agreement with the
                                                                                                                                                                                                                 but now the estimated value is far below




                                                                                                                                                                                                                                                            inheritance tax on 70 % of market value.
                                                                                                                                                                                                                                                            In the expensive areas the estimation is
                                                 The most serious problem related to real esta-    favourable court decision. The equalization




                                                                                                                                                                                                                                                            The land tax is calculated on the basis




                                                                                                                                                                                                                                                            The cadastral value of r.e.p. is usually
                                                                                                                                                                                                                                                            Usually the previous mentioned value
                                                                                                                                                                                                                                                            estimated values may be much higher
                                                                                                                                                                                                                                                            The estimated r.e.p. value in the most
                                                                                                                                                                                                                                                            cases are far below the market price

                                                                                                                                                                                                                                                            of the market value. In other cases,



                                                                                                                                                                                                                                                            is little lower than the market price.




                                                                                                                                                                                                                                                            of 10-20% of market value and the
                                                 te property taxation is the evaluation of taxa-   of tax evaluations to the market prices would




                                                                                                                                                                                                                                                            tion is 50-60 % of the market value


                                                                                                                                                                                                                                                            – but not always – a little lower
                                                 ble property. Although some assets, such as       require a drastic reduction of the tax factors,




                                                                                                                                                                               Far below of the market value.
                                                 notably publicly quoted shares may raise pro-     a policy the revenue authorities would be




                                                                                                                                                                                                                 No information available.




                                                                                                                                                                                                                                                            No information available.




                                                                                                                                                                                                                                                            No information available.



                                                                                                                                                                                                                                                            No information available.
                                                                                                                                                                                                                                                            No information available.
                                                 blems, the evaluation of private chattels,        extremely reluctant to accept.




                                                                                                                                                                                                                                                            than the market value.




                                                                                                                                                                                                                                                            market value (100 %).
                                                 immovable property and private businesses         The European practice upon matters of real




                                                                                                                                                                                                                 of the market value.
                                                 tends to be much more difficult. Net wealth       estate property evaluation uses the following




                                                                                                                                                                                                                                                            than the market.
                                                 tax and death taxes are difficult to establish    three methods:
                                                 as well, since there are no actual open mar-




                                                                                                                                                                    Accuracy
                                                 ket value transactions. The first fundamental     a) Market value. This value depicts the trans-
                                                 principle of the real estate property evalua-     fer price, which the real estate property had,
                                                 tion is that immovable property, as every         if its owner would sell it. The market value
                                                 asset, has not a unique value, but it always      is calculated by estimating comparative fac-




                                                                                                                                                                                                                                                                                                                                                                                                          For all the r.e.p. in the urban areas and tourist resorts there is a system of




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           proposed the abolition of this system, but the issue remains in suspense,
                                                                                                                                                                                                                                                                                                                                                                                                          calculation of its value called „objective system“, frequently readjusted.
                                                 depends on the calculation method of the          tors and administrative data related to pre-




                                                                                                                                                                                                                                                                                                                                                                                                          In terms of the rural land, the tax authorities estimate freely its value.a
                                                                                                                                                                                                                                                            The r.e.p. value is estimated by the State without a standard system.




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           The value of real estate property is based on the national evaluation
                                                 final and taxable value.                          vious sales of a particular kind of real estate




                                                                                                                                                                               The property’s value has been assessed by the State on 01.01.1980.




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           cadastral system, increased in 1997, based on areas and typologies




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           system, according to which properties are appraised every 4 years.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           This system was first introduced in 1997. The former government
                                                                                                                                                                                                                                                                                                                                    The value of r.e.p. is estimated by the owner, at the market value.
                                                                                                                                                                                                                                                            In many cases the r.e.p. value is based on historical prices which
                                                 It is obvious that the chosen valuation           in a specific area.




                                                                                                                                                                                                                                                                                                                                    The r.e.p. value is estimated by the Federal State with different
                                                 method will be that which forms the whole




                                                                                                                                                                               The State has assessed the property’s value some years ago.




                                                                                                                                                                                                                                                                                                                                    The administration has the right to correct this declaration.




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           The value of r.e.p. is estimated by the state with standard,
                                                 capital taxation system. The result of this       b) Objective value. This method emanates by




                                                                                                                                                                                                                                                                                                                                    The value of r.e.p. is estimated by the State every year.
The Problem of real Estate Property Evaluation




                                                 method depends on:                                the apprehension that the final value of
                                                                                                   immovable property is the result of some




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           as the next government may uphold this decision.
                                                                                                                                                                                                                                                                                                                                    The base of this evaluation is the market prices.
                                                 a) The time of evaluation                         fixed factors, (such as the real estate’s area,




                                                                                                                                                                               Those values might be increased in the future.
                                                                                                   the antiquity, the region, the marketability of
                                                 b) The general principles of the method           the road where a building is situated etc.)




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       Estimation of Property’s Value in Europe
                                                                                                                                                                                                                                                            haven’t been readjusted for centuries.
                                                                                                   which have to be determined by the tax
                                                 c) The way according to which these princi-       authorities.
                                                 ples are put into effect




                                                                                                                                                                                                                                                                                                                                    systems for each kind of tax.
                                                                                                   c) Value as a cost of initial investment. This




                                                                                                                                                                               No information available.




                                                                                                                                                                                                                                                                                                                                    No information available.




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           No information available.



                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           No information available.
                                                 d) The calculations means (finding of com-        method is in use only in Norway. Taxable




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           of immovable propety.
                                                 parative elements, measurement by experts         value of real estate property results from the
                                                 etc)                                              purchase cost or the construction amended
                                                                                                   by some factors, such as the cost-of-living
                                                 e) The frequency of readjustment of primary       index, the antiquity and the cost of posterior




                                                                                                                                                                    Method
                                                 value.                                            additions of improvements.

                                                 Another fundamental matter is whether all




                                                                                                                                                                                                                                                            Czech Republic
                                                 imposed taxes on real estate property value




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        Netherlands
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        Luxemburg
                                                 should be levied in the same evaluation




                                                                                                                                                                                                                                                                                                                                    Denmark




                                                                                                                                                                                                                                                                                                                                                                                       Germany
                                                                                                                                                                    Country
                                                 system. It is generally accepted that the more




                                                                                                                                                                                                                 Belgium




                                                                                                                                                                                                                                                                                                                                                        Finland
                                                                                                                                                                               Austria



                                                                                                                                                                                                                 Cyprus




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           Ireland
                                                                                                                                                                                                                                                                                                                                                        France




                                                                                                                                                                                                                                                                                                                                                                                                          Greece
                                                 calculation methods are used, the more com-




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           Italy
                                                 plicated and expensive the taxation system        Legend of summary table for capital taxation
                                                 becomes.
                                                                                                   System Differentiation of taxes according to the configuration
                                                                                                          system of their rates.
                                                 The evaluation methods in practice                No     There isn’t
                                                                                                   Yes    Applicable
                                                 In almost all countries, the existing evalua-     INH. Inheritance type tax
                                                 tion systems practically underestimate the        EST. Estate type tax
                                                                                                   C.     Identically tax treatment with Children
                                                 value of r.e.p. fixing prices, which are prac-    I.     Independent of other taxes collection
                                                                                                   I. T.  Added to Income (Income Tax scale is applicable)
                                                 tically almost around 50% of the correspon-       ?      No information available, please specify it and sent it
                                                 ding market value. This is necessary for the-            to U.I.P.I.
                                                                                                   P. S.  Progressive Scale
                                                 se systems to work efficiently.                   S.     Special tax treatment independent of the one of other
                                                 Otherwise taxpayers whose property is actu-              relatives
                                                                                                   S. R. Singe Rate                                                                                                                                                                                                                                                         a          The Greek Finance Ministry will soon expand the system to
                                                 ally worth less than what the system indica-      S. T.  Special Tax according to the area or value                                                                                                                                                                                                                                   cover the whole country.



 26                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             27
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               Real estate property ownership taxation             by national tax authorities for the whole of




                                                                                                                                                                                                                                                                                                                                                                                                         ty will not exceed the market value. It is
                                                      There are different calculation systems. Tax-base is set by local authorities. The estimated value equals approximate-




                                                                                                                                                                                                                                                                                                                                                                                                         The cadastral value of real estate proper-



                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   This estimation must correspond to 75 %


                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   decided that the tax value should not be
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   The Supreme Court of Switzerland has
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   the country. If there is municipal ownership




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   lower than 70 % of the market value.
                                                                                                                                                                                                                                                                                                                             „Land Tax“ is levied on 30 % of the




                                                                                                                                                                                                                                                                                                                                                                                                         supposed to be the most reasonable
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               Taxation as a choice of tax legislator              taxation, local authorities adopt the value as
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               The first useful result that arises from our        having been calculated by the State. Only in
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               research is that in sixteen of twenty-two que-      Belgium and France is an entirely different



                                                                                                                                     ly 25 % of the market value.
                                                                                                                                                                               No information available.




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   No information available.
                                                                                                                                                                                                                                                                                       No information available.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               stioned European countries, one or more             system of calculation adopted.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               ownership taxes are applied. With the excep-        Regarding the configuration of thresholds




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   of the market value.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               tions of Belgium and France, in all other           and rates we can descry three methods:
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               countries, ownership taxes are calculated on




                                                                                                                                                                                                                                                                                                                             market price.




                                                                                                                                                                                                                                                                                                                                                                                                         selling price.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               the basis of the value of the owned property.       a) Organization according to progressive
                                           Accuracy




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               It is noticeable that both in Netherlands as        scale. In general as it happens with income
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               well as in the other four Scandinavian coun-        taxation, ownership tax follows various

                                                                                                                                                                                                                                                                                                                   ?
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               tries, this kind of capital taxation constitutes    thresholds each one having a different rate.
                                                                                                                                                                                                           be that resulting from capitalization of taxable income updated by applying

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               a particularly conservative institution, with a     The lower thresholds corresponded to rather
                                                                                                                                                                                                           the factor 15 or 20 in respect of urban or rural property correspondingly.b



                                                                                                                                                                                                                                                                                                                             accordance with declaration of income. In case of doubts, the authorities
                                                                                                                                                                                                           There are different systems for each kind of tax. The taxable value must




                                                                                                                                                                                                                                                                                                                                                                                                         with data deriving from the Cadastral Register and will be composed of
                                                                                                                                                                                                                                                                                                                                                                                                         Cadastral value of property will be objectively estimated in accordance
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               history of over 70 years.                           low rates that do not usually exceed 0,5 %.




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   recalculated every year. This calculation is based on the market value.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               Contrary to the previous mentioned practice,




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   The r.e.p. value is fixed each six years and since 1996 in principle,
                                                                                                                                                                                                                                                                                                                             Taxes are levied on inheritance and donation. Tax rates are set in

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               in some other countries, this tax didn’t have       b) Taxation with a single rate. According to
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               a long, undisturbed course and had therefore        this system the total owned property above
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               produced criticism and opposition which             the tax-free threshold – if there is one – is
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               sometimes led to its withdrawal. For instan-        taxed with the same tax-rate that is usually


                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   The r.e.p. value is estimated by cantonal authorities.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               ce in France, a complete system of net wealth       adapted to greater properties, resulting in
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               taxation, called „impôt sur les grandes fortu-      over-taxation of small landlords.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               nes“ had been imposed in 1982. This system
                                                                                                                                                                                                                                                                                                                                                                                                         the land and the buildings cadastral values.




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               was abolished in 1987 only to return two            c) Finally in Czech Republic and Poland,
Estimation of Property’s Value in Europe




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    Real Estate Property Taxation in Europe
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               years later under the name „impôt de solida-        ownership taxation is materialized with a
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               rité sur le fortune“. In Greece this kind of        fixed amount of money per measure of area
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               taxation appeared with many fluctuations            of taxable real estate. On the other hand in
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               and in Ireland national tax authorities had         Netherlands ownership taxation is materiali-
                                                                                                                                                                                                                                                                                                                             request help from experts.
                                                                                                                                                                               No information available.




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    United Kingdom No information available.


                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               experimented a tax of this kind in 1975 but         zed with a fixed amount of money per 2272
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               they withdrew it in 1978.                           Euro of taxable value.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               The reasons, which lead national tax autho-
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               rities to adopt this kind of taxation, have alre-   At this point it can be claimed that in all
                                           Method




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               ady been unfolded and are relevant to the           countries exceptions and relieves are appli-
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               State’s social and financial policy. The            cable in case of married people, families with
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               ownership taxation value for authorities is         many children or for some categories of real
                                                                                                                                                                                                                                                                                                                   ?




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               highlighted by the fact that both the national      estate such as agricultural and forestland,
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               authorities as well as the locals try to explo-     buildings of historic value etc.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       Switzerland




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               it the revenues of this tax. In thirteen coun-
                                                                                                                                                                                                                                                                                                                   Romania
                                           Country




                                                                                                                                                                                                           Portugal




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               tries, real estate property ownership is taxa-
                                                                                                                                                                                                                                                                                                                             Slovenia
                                                      Norway




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   Sweden
                                                                                                                                                                               Poland




                                                                                                                                                                                                                                                                                                                                                                                                         Spain




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               ble on local level. On the other hand in eight
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               European countries there is national taxation
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               of real estate property ownership. Finally it is
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               noticeable that in, Cyprus, Finland, France,
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               Greece, Norway, Spain and Switzerland,
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               both a municipal and a national tax of
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               ownership is applicable.

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               Structure of the tax
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  b                          The taxable amount of property is represented by its net          As we have already mentioned, in most
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             assets value as determined under the terms of the Evalua-
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             tion Code but this legal text, isn’t yet in force so the r.e.p.   countries ownership taxes are applied on the
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             value continues to be evaluated in accordance with the rules      real estate property value. The taxable value
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             of Property Tax Code, except as regards building land irre-
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             levant for the purposes of this code.                             is calculated on the basis of different systems


 28                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          29
                                                                                                                                                                                                                                                                                                                                                                                              a   An annual tax on real estate is due by the owner of a real           c) Regional Tax at rate 1-2%. Each municipal council deter-




                                                                                                                                                                                                                          243.600 Eurof
                                                                                             Tax-Free



                                                                                                                       100.000 Euro



                                                                                                                                                                               18.007 Euro
                                                                                                                                                                                                716.510 Euro




                                                                                                                                                                                                                                                                                     14.634 Euro or 18.293 Euro




                                                                                                                                                                                                                                                                                                                                                                 No tax-free
                                                                                                                                                                                                                                                                                                                                                            See reference 10
                                                                                                                                                                                                                                                                                                                                                                 No tax-free
                                                                                                                                                                                                                                                                                                                                                                                                  estate. It strikes the built and not built properties, the mate-     mines liberaly the exact tax-rate within the above-mentioned
                                                                                                                                                                                                                                                                                                                                                                                                  rial and the tools which are attached to the good. The tax on        limits.
                                                                                                                                                                                                                                                                                                                                                                                                  real estate is a percentage of the indexed cadastral income        e This tax called «Impôt de solidarité sur la fortune» was put
                                                                                                                                                                                                                                                                                                                                                                                                  composed of three parts: a part for the Area, for the Pro-           into effect in 1989, replacing another identical tax, the
                                                                                                                                                                                                                                                                                                                                                                                                  vince and for the Commune (these two last authorities apply          «Impôt sur le grandes fortunes», which had been withdrawn




                                                Net Wealth Tax
                                                                                                                                                                                                                                                                                                                                                                                                  additional taxes to the amount intended for the Area). The           since 1987.
                                                                                                                                                                                                                                                                                                                                                                                                  percentage of the advance payment of tax on real estate thus       f For married couples, there is no taxation if the total value
                                                                                                                                                                                                                                                                                                                                                                                                  differs according to the commune where the good is located.          of their real estate property does not exceed the value of




                                                                                                        No
                                                                                                                  No



                                                                                                                                                         No



                                                                                                                                                                                                               No
                                                                                                                                          No




                                                                                                                                                                                                                                           No


                                                                                                                                                                                                                                                               ?
                                                                                                                                                                                                                                                              No




                                                                                                                                                                                                                                                                                                                                                        ?
                                                                                                                                                                                                                                                                                                                                                       No




                                                                                                                                                                                                                                                                                                                                                                                         No
                                                                                                                                                                                                                                                                                                                                                                                                  The advance payment of tax on real estate can be reduced             487200e plus 61650e for the first two underaged children
                                                                                                                                                                                                                                                                                                                                                                                                  for the following reasons:                                           and 73.400 Euro for any other underage child.
                                                                                                                                                                                                                                                                                                                                                                                                  a) Poor dwelling: a reduction of 25 % of the advance pay-          h Local authorities decide liberally for the imposition of this
                                                                                                                                                                                                                                                                                                                                                                                                  ment of tax on real estate is granted to the dwellings whose         tax. When a local government decides to use its right, a regi-
                                                                                                                                                                                                                                                                                                                                                                                                  cadastral income is lower than 745 Euro.                             ster of the properties affected with their values, must be pre-
                                                                                                                                                                                                                                                                                                                                                                                                  b) Taxpayer handicapped or recognized like large invalid of          pared. These taxable values must not exceed the market




                                                                                                                                                                               0,5-1,5%e
                                                                                                                                                                                                                                                                                                                                                                                                                                                                       values. Less than half of the local Governments have explo-

                                                                                                                       0,25-0,45%



                                                                                                                                                                                   0,9%



                                                                                                                                                                                                                             0,3-0,8%


                                                                                                                                                                                                                                                No
                                                                                             Rates




                                                                                                                                                                                                                                                                                     0,9-1,1%
                                                                                                                                                                                                                                                                                           No
                                                                                                                                                                                                                                                                                                                  No



                                                                                                                                                                                                                                                                                                                                                                0,2-2,5%
                                                                                                                                                                                                                                                                                                                                                            1% k + 1,5%l
                                                                                                                                                                                                                                                                                                                                                             0,5-1,55%n
                                                                                                                                                                                                                                                                                                                                                                                                  war: the reduction of the advance payment of tax on real
                                                                                                                                                                                                                                                                                                                                                                                                  estate for large invalid of war amounts to 20 %, that for the        ited this opportunity to collect property tax.
                                                                                                                                                                                                                                                                                                                                                                                                  handicapped head of household is 10 %.                             i Three different rates are applicable dependent on the kind
                                                                                                                                                                                                                                                                                                                                                                                                  c) Children and handicapped people with family obliga-               of taxable real estate property. Land tax is 0,02 Euro/m² on
                                                                                                                                                                                                                                                                                                                                                                                                  tions: these reductions are granted only if the family of the        the average. Building surface tax-rate runs into 0,1 Euro/m²
                                                                                                                                                                                                                                                                                                                                                                                                  taxpayer has at least 2 children. The amount of the reduc-           for habitable surface and 3,5 Euro/m² for utility surface.
                                                                                                                                                                                                                                                                                                                                                                                                  tion differs in Flanders compared to the remainder from Bel-       j An annual property tax is planned to be introduced by 2005
                                                                                                                                                                                                                                                                                                                                                                                                  gium:                                                                as a payable tax to municipalities.
                                                                                                                                                                                                                                                                                                                                                                                                  d) In Brussels and in Wallonia: the reduction of the advan-        k The tax value of property is determined by the market value.
                                                                                                                                                                                                                                                                                                                                                                                                  ce payment of tax on real estate amounts to 10 % per child           Therefore the real estate tax levied on family houses varies
                                                                                                                                                                                                                                                                                                                                                                                                  and 20 % per anybody handicapped – In Flanders: the per-             widely in different parts of the country. There is a limitation
                                                Municipal real estate property tax (State)




                                                                                                                                                                                                                                                                                                                                                                                                  centage of reduction is replaced by a contractual reduction          rule; Tax is limited to 5 % of family income if:
                                                                                                                                                                                                                                                                                                                                                                                                  whose amount increases with the row of the child.                    a) tax value of property is somewhere between 30.000 Euro




                                                                                                                                                                                                                                                                       No tax-free



                                                                                                                                                                                                                                                                                                                  93.505-141.460 Euro
                                                                                             Tax-Free



                                                                                                                       No tax-free


                                                                                                                                                         No tax-free
                                                                                                                                                                               No tax-free
                                                                                                                                                                                                No tax-free
                                                                                                                                                                                                No tax-free
                                                                                                                                                                                                                             No tax-free


                                                                                                                                                                                                                                                No tax-free
                                                                                                                                          No tax-free




                                                                                                                                                                                                                                                                                     No tax-free
                                                                                                                                                                                                                                                                                     No tax-free
                                                                                                                                                                                                                                                                                                                                                                                              b   All restituted buildings have been relieved for the Real Esta-       and 323.000 Euro, and
                                                                                                                                                                                                                                                                                                                                                                                                  te Property tax for 15 years.                                        b) family income does not exceed the amount of 64.800
Annual Taxation of R.E.P. Ownership in Europe




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         Annual Taxation of R.E.P. Ownership in Europe
                                                                                                                                                                                                                                                                                                                                                                                              c   This tax is imposed by each municipal council that defines           Euro/year. Until May 1998, the tax-rate was 1,7 %, but has
                                                                                                                                                                                                                                                                                                                                                                                                  the tax-rate between 0,22-0,5% for dwelling buildings and            changed after the loud protests of property owners. The
                                                                                                                                                                                                                                                                                                                                                                                                                                                                       value of real estate property is not taxable, if the owner runs




                                                                                                                                                                                                                                                                                                                                                            Yes (No other information)
                                                                                                                                                                                                                                                                                                                                                                                                  0,5-1 % for a sites and other than dwelling buildings. The
                                                                                                                                                                                                                                                                                                                                                                                                  council can also decide that for buildings used as second            his property as his business.
                                                                                                                                                                                                                                                                                                                                                                                                  residencies the rate is max 0,6% higher than for residential       l This is an additional Net-Wealth tax, applicable upon hou-
                                                                                                                                                                                                                                                                     5,80 Euro/2272 Euro of value                                                                                                 buildings. The average tax-rate for residential buildings is         ses with a high tax value and low or no mortgages. There is
                                                                                                                                                                                                                                                                                                                                                                                                  0,26 %, for sites or other buildings 0,67 % and for second           a tax-exempt threshold of 161.812 Euro for single persons




                                                                                                                                                                                                                                                                                                                                                                    Variesm
                                                                                                                                                                                                                                                                                                                                                                                                                                                                       and 215.750 Euro for families.
                                                                                                        Yesa




                                                                                                                                                                                                                                                                                                                                                                                                  residences 0,78 %. The property’s value is determined by the
                                                                                                        Yes




                                                                                                                                                                                                                                           No


                                                                                                                                                                                                                                                                                          ?




                                                                                                                                                                                                                                                                                                                                                        ?
                                                                                                                                                                                                                                                                                                                                                       No


                                                                                                                                                                                                                                                                                                                                                                       No

                                                                                                                                                                                                                                                                                                                                                                                         No
                                                                                                                                                                            0,22-0,5% (0,5-1% for houses)c




                                                                                                                                                                                                                                                                                                                                                                                                  same method as in the net-wealth tax 67 %.                         m About half of the cantons have a supplementary wealth tax
                                                                                                                                                                                                                                                                                                                                                                                              d   All municipal real estate property taxes are calculated upon         upon real estate property. This tax varies between 0,3-3 % of
                                                                                                                                                                                                                                                                                                                  0,8% (agricultural) 0,8-1% (urban)                                              estimated attribution of owned r.e.p. There are three different      the fiscal value
                                                                                                                                                                                                                                                                                                                                                                                                  taxes at various rates:                                            n This tax-rate is applied in the canton of Bern.
                                                                                                                                                                                                                                                                                                                                                                                                  a) Communal Tax at rate 20-30%;
                                                                                                                                                                                      26-42 %d




                                                                                                                                                                                                                                                                   Up to 0,7%h
                                                                                                                                                                                                                                                              0,02-3,5 Euro/m² i



                                                                                                                                                                                                                                                                                                                                                                                                  b) Departmental Tax at rate 5-10 % and
                                                                                             Rates



                                                                                                                       0,8%
                                                                                                                                          0,27 Euro/m²
                                                                                                                                                         1,6-3,4% plus 1%



                                                                                                                                                                                                               0,4-1,2%
                                                                                                                                                                                                                             0,25-0,35%


                                                                                                                                                                                                                                                0,4-0,7%
                                                                                                                                      Czech Republicb




                                                                                                                                                                                                                                                                                                                                                            United Kindom
                                                                                                                                                                                                                                                Netherlands




                                                                                                                                                                                                                                                                                                                                                            Switzerland
                                                                                                                                                                                                                                                Luxemburg




                                                                                                                                                                                                                                                                                                                  Slovenia j
                                                Country




                                                                                                                                                         Denmark



                                                                                                                                                                                                Germany




                                                                                                                                                                                                                                                                                                                  Romania
                                                                                                                  Belgium




                                                                                                                                                                                                                                                                                                                  Portugal
                                                                                                                                                                                                                                                                                     Norway




                                                                                                                                                                                                                                                                                                                                                            Sweden
                                                                                                                                                                               Finland
                                                                                                        Austria

                                                                                                                  Cyprus




                                                                                                                                                                                                                             Greece
                                                                                                                                                                                                                             Ireland




                                                                                                                                                                                                                                                                                     Poland
                                                                                                                                                                                                France




                                                                                                                                                                                                                                                                                                                                                            Spain
                                                                                                                                                                                                                                                Italy




 30                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                31
                                          Taxation of donations and inheritances             an object of ownership tax rather than as an       capital consult next table. Looking at all the
                                                                                             object of inheritance and donation tax.            different thresholds and rates in European
                                          Donations and inheritance as an object of          Of course the benefactor’s expectation for         countries, we can distinguish a large variety.
                                          taxation                                           the continuity and the fruitfulness of his acti-   The higher tax-rate for children is applicable
                                          Taxes at death and on gifts are the most com-      vity via the transfer of his capital to his/her    in France and U.K. and it can be up to 40 %.
                                          mon kinds of taxation and with the least dif-      descendants should be taken into account by        On the other hand in U.K. – which as we
                                          ferences from country to country. The first        tax authorities.                                   have already mentioned is the only country
                                          imposition of these taxes is lost as time pas-     Moreover the closer relation the beneficiary       with „estate type“ calculation – there is the
                                          ses by. Although donation and inheritance tax      has with his testator or donator, the more pos-    highest tax-free limit which was 331.245
                                          are a different type of taxation, authorities      sible for the former to play a particular role     Euro in 1998 and now – given also the incre-
                                          almost always affront them in the same way.        in the accession and conservation of the           ase exchange value of pound – is higher.
                                          This practice is justified by the fact that both   transferred capital. Otherwise close relatives
                                          legal acts (donation and inheritance) aim at       will be the ones to suffer more from the death
                                          the transfer of capital without any exchange,      of their testator and in most cases, they are
                                          contrary to the sale that is taxed in different    those who were looking after him during his
                                          way.                                               last years.
                                          Taxation theory knows two calculation              Actually, differentiation of transferred
                                          methods for these taxes:                           capital tax treatment in accordance with
                                                                                             the family tie between the inheritor (or dona-
                                          a) The estate type, according to which the         tor) and the beneficiary (or recipient), is well
                                          base and rate of the tax levied on a capital,      known in national tax legislations. The
                                          are governed by the amount transferred (tax        favourable treatment of transferred capital
                                          upon the inheritance as a whole), and              can be materialized in three different ways.
Real Estate Property Taxation in Europe




                                                                                                                                                                                                 Real Estate Property Taxation in Europe
                                          b) The inheritance type, according to which        a) Forming of wider thresholds. The result of
                                          the base and rate of the tax levied of a capi-     this practice is that a larger mass of capital
                                          tal, is governed by the exact amount received      comes under a lower threshold, therefore a
                                          by each beneficiary.                               lower tax-rate.

                                          It is obvious that the first system could be       b) Forming of lower rates. This is the most
                                          more efficient for the authorities, as the total   common method of favourable treatment.
                                          transferred amount is taxed before its distri-     There are different-lower rates for the closest
                                          bution to beneficiaries, so the taxable value      relatives than others or strangers.
                                          – in most cases – is greater and easy to esti-
                                          mate. On the other hand, the second system         c) Institution of a higher tax-free limit.
                                          takes the specific characteristics of benefici-    According to this method the inheritor or
                                          aries into account such as their relation to the   donator can leave most of his property to clo-
                                          testator or donator, and of course the final       se relatives without rendering them liable for
                                          capital value after the allocation of transfer-    the payment of this tax.
                                          red property. The first of these two systems
                                          is adopted only in U.K. (concerning research       Actually only closest relatives take advanta-
                                          data we had).                                      ge of these adjustments, in most cases chil-
                                                                                             dren and spouses. These three methods of
                                          Structure of the tax                               favourable treatment are known in six of
                                          As any other capital tax, the taxes at death       European countries. Yet the most remarkable
                                          and on gifts are calculated upon the value of      data is that in Switzerland, Norway, Slovenia
                                          transferred property. If the State has formed      and Czech Republic the favourable treatment
                                          a system of real estate property value esti-       of transferred property reaches full abolition
                                          mation, then it applies also for donation and      of the tax for some relatives or – in the case
                                          inheritance taxes. Germany and Portugal are        of the first of these countries – for all the
                                          the only countries with different calculation      beneficiaries! For further information about
                                          methods for the real estate property value as      the favorable treatment of the transferred


 32                                                                                                                                                                                                       33
                 Methods of favorable Treatment of Relatives
34


     S.

                         ?
                         No
                         C.
                         B.
                         Yes

                                                                   Legend
                                                                                            Methods of favorable treatment of relatives concerning inheritance and donation of R.E.P.
                                                                            Country                        Wider                   Lower                     Higher                Most Favorite
                                                                                                      Thresholds                    Rates                  Tax-Free                    Relatives
     Adjustment in favor of Spouses
     to U.I.P.I.
     No information available, please specify it and send it
     Not Applicable
     Adjustment in favor of Children
     Adjustment in favor of Brothers
     Applicable




                                                                            Austria                           No                          Yes                           Yes                              S.
                                                                            Belgium                           Yes                         Yes                           Yes                            C/S.
                                                                            Cyprus                            Yes                         Yes                           Yes                             C.a
                                                                            Czech Republic                             Full Release                                                                    C/S.
                                                                            Denmark                            No                         No                              ?                               ?
                                                                            Finland                            Yes                        Yes                           No                             C/S.
                                                                            France                              ?                         Yes                           Yes                            C/S.
                                                                            Germany                            No                         Yes                             ?                              S.
                                                                            Greece                            Yes                         Yes                           Yes                            C/S
                                                                            Ireland                            A.                         No                            Yes                            C/S.
                                                                            Italy                             Yes                         Yes                           Yes                          C/S/?.
                                                                            Luxemburg                           ?                         Yes                             ?                           C/S.
                                                                            Netherlands                       Yes                         Yes                           Yes                              S.
                         b

                                                       a




                                                                            Norway                                     Full Release                                                                      S.
     come under the same high tax-free threshold.
     thresholds which are provided for spouses but they don’t
     Children as well as grandchildren are in favor of the wider
     under different treatment.
     to 21 years old. Adult children as well as the spouses come
     The highest tax-free threshold is applicable on children up




                                                                            Poland                             No                         Yes                           No                            C/S.
                                                                            Portugal                           Yes                        Yes                           Yes                              C
                                                                            Romania                              ?                          ?                             ?                               ?
                                                                            Slovenia                                   Full Release                                                                   C./S.
                                                                            Spain                             No                          No                            Yes                              C.
                                                                            Sweden                            Yes                         No                            Yes                            S.b
                                                                            Switzerland                                Full Release                                                                     All
                                                                            United Kindom                      No                         No                            No                              No




                                                                            Country              Children-Parents               Spouses                    Brothers                      Strangers
                                                                                                Rate       Tax-Free        Rate          Tax-Free.      Rate      Tax-Free           Rate         Tax-Free
                                                                            Austria           2-15%      2.200 Euro      2-15%          9.500 Euro    6-40%       440 Euro        14-60%           110 Euro
                                                                            Belgiuma          3-30%     12.405 Euro      3-30%        12.405 Euro    20-65%    12.405 Euro       30-80%                 No
                                                                            Cyprus          10-30% 258.000 Eurob       10-30%        129.000 Euro    10-30%    34.400 Euro       10-30%        34.400 Euro
                                                                            Czech Republicc    1-5%             No        1-5%                 No     3-12%            No          7-40%                No
                                                                            Denmark             15%               ?        15%                   ?      15%              ?           15%                  ?
                                                                            Finland         2,5-13%      3.364 Euro    2,5-13%          3.364 Euro         ?    3.364 Euro       7,5-48%        3.364 Euro
                                                                            France            5-40%     46.154 Euro      5-40%        50.769 Euro    35-45%            No            60%                No
                                                                            Germany           7-30%    205.000 Euro      7-30%       307.000 Euro    12-40%    10.300 Euro        17-50%        5.200 Euro
                                                                                                                                   +256.000 Euro
                                                                            Greece            5-20 %d    20.000 Euro     5-20%        20.000 Euro    10-30%        15.000 Euro   20-40%          5.000 Euro
                                                                            Ireland e            20%    422.128 Euro       20%       422.128 Euro       20%        40.000 Euro      20%         12.500 Euro
                                                                            Italy                 3%    180.785 Euro         3%      180.785 Euro        3%       180.785 Euro 3% (7% )f    180.759,91 Euro
                                                                            Luxemburg             2%               ?         2%                  ?        ?                15%              ?
                                                                            Netherlands        5-27%     8.284 Eurog     5-27%       484.691 Euro    26-53%          1.795 Euro  41-68%                   ?
                                                                            Norway             8-20%     24.510 Euro         0%             Whole    10-30%        24.510 Euro   10-30%         24.510 Euro
                                                                            Poland                7%             No          7%                No       12%                 No      20%                 No
                                                                            Portugal           4-23%      3.295 Euro     6-25%          3.295 Euro    7-32%                 No   16-50%                 No
                                                                            Romania                   ?                              ?                             ?                         ?
                                                                            Slovenia             0%           Whole          0%             Whole         0%             Whole   11-30%                 No
                                                                            Spain              7,42-                       7,42-                        7,42-                       7,42-
                                                                                            32,98% 15.956,87 Euroh      32,98% 15.956,87 Euro        32,98%      7.993,46 Euro   32,98%                 No
                                                                            Swedeni        10-30% j 7.751,25 Euro      10-30%         30.205 Euro    10-30%          2.540 Euro  10-30%          2.540 Euro
                                                                            Switzerland k            Varies                      Varies                         Varies                      Varies
                                                                            United Kindoml     40%      33.1245 Euro       40%       331.245 Euro       40%       331245 Euro       40%         33.1245 Euro




                 Donations & Inheritance Tax in Europe
35
                                        a   Rates of death duty vary between 3 and 80% according to           The taxation of capital gains                       treated as income or not. Both these appro-
                                            relationship and the last residence of the deceased. Since
                                            1999, there is different tax scales in three areas of Belgium.                                                        aches are known in European countries.
                                        b   The tax-free threshold for children over 21 is the same as for    Matters of tax policy                               Where the capital gains are taxed as income,
                                            spouses’
                                        c   These rates are applicable upon donations. In case of inher-      This kind of capital taxation in spite of the       they come under the same scale with income
                                            itance, children and spouses are totally tax-exempted while       oppositions expressed by the taxpayers,             tax with the exception of Denmark where alt-
                                            all other inheritors are levied on 5% of donation-tax.
                                        d   For under aged children there is a special tax reduction 60-      seems to be quite common in Europe consi-           hough capital gains are considered as income
                                            30% for inheritance with value up to 28.835 and up to             dering that sixteen European countries at           and are taxed according to a different pro-
                                            115.340 Euro correspondingly.
                                        e   For gifts or inheritances of the family home taken on or after    least, impose such a tax. The reason mentio-        gressive scale. On the other hand where capi-
                                            December 1st 1999, this tax will no longer apply in follo-
                                            wing cases:                                                       ned by the tax authorities is that this tax is      tal gains are taxed independently of income,
                                            a) It is the principal private residence of the disposer and/or   levied on the unexpected value increase of          large – and usually singe – rates are adopted.
                                            the recipient.
                                            b) The recipient has been living in house for 3 years prior       someone’s property that takes place without
                                            to the transfer.                                                  his effort. Another reason is that this tax
                                            c) The recipient does not have an interest in other house and
                                            d) The recipient does not dispose of the house for 6 years        offers to authorities the capability to find
                                            after the transfer. Agricultural assets qualify for a deduction   some factors concerning the effective real
                                            of 90 % of value when calculating taxable value.
                                        f   In case of donations.                                             estate property, which they can be used for
                                        g   Only when children receive property from their parents.
                                            When parents receive property from their children, tax-rates      crosschecking of other taxes thus discoura-
                                            are 41-68% and tax-free threshold is 41.418 Euro.                 ging tax evasion.
                                        h   For children under 21 there is a special tax-free threshold
                                            of 18.000 Euro + 12.000 Euro for every year under the age         In case of real-estate property this type of tax
                                            of 21 of the assignee. The highest possible tax-deduction is      is the source of strong controversies. Capital
                                            114.000 Euro.
                                        i   According to 2000 report, especially for all the donations,       profits tax ignores the fact that in case of real
                                            the tax-free amount is set to 1210 Euro. There was a propo-       estate, the capital profits are materialized
                                            sal by the Committee of tax on real estate property (Egen-
                                            domsskattekommitten) in January 2003, that taxable inher-         only after its transfer, but even then they are
                                            itance between spouses shall be abolished from July 1st,
                                            2003.                                                             only the makeweight of the long-standing
                                        j   Apart from that rate, there is also an additional inheritance     hibernation of the capital which has been
                                            tax which is 3.295 Euro for value between 32.930 Euro-
                                            65.860 Euro and 9.880 Euro for the exceeding value.               embodied in a real estate for years.
Donations & Inheritance Tax in Europe




                                                                                                                                                                                                                   Donations & Inheritance Tax in Europe
                                        k   In 1999 the cantons of Zurich and Ticino abolished the tax
                                            on inheritance and donation. About half of the cantons still
                                            apply this kind of tax, but there is a strong political tenden-   Structure of the tax
                                            cy to eliminate it on local basis.                                As a base of calculation is considered the dif-
                                        l   United Kingdom is the only E.U. country in which the bio-
                                            logical relationship between the heirs and the deceased           ference between the purchase price and
                                            plays no role to the tax rates. Some relieves are applicable.
                                            In the case of listed shares giving control, fixed assets used    the sale price of the property. The taxable
                                            by a company, which the transferor controls or by a part-         amount is reduced according to some fac-
                                            nership in which the transferor is a partner, trust property
                                            used by a life tenant in his own business and other tenanted      tors different from country to country, such
                                            agricultural property, the tax rate is 20%. Moreover, in a        as the cost-of-living index, cost of renovation
                                            business property there is an interest in business, in farm
                                            tenancy held personally, unlisted shares and agricultural         or any other improvement etc. The basis of
                                            land with vacant possession, and there is no inheritance tax.     calculation is the difference between the
                                                                                                              purchase price and the sale price of the
                                                                                                              property. The taxable amount is reduced
                                                                                                              according to some factors and varies from
                                                                                                              country to country, such as the cost-of-living
                                                                                                              index, cost of renovation or any other impro-
                                                                                                              vement etc.
                                                                                                              In some countries there is different tax-tre-
                                                                                                              atment between the short- and long-term
                                                                                                              gains. For example in Germany, Italy and
                                                                                                              Slovenia only short-term gains are taxable.
                                                                                                              Where both these kind of gains are taxed, the
                                                                                                              charging may differ between them by impo-
                                                                                                              sing a lower tax-rate on long-term gains, or
                                                                                                              by imposing tax on less than their full
                                                                                                              amount.
                                                                                                              The most important argument about taxation
                                                                                                              of capital gains is whether they must be


 36                                                                                                                                                                                                                        37
                                            25 or 35%a


                                                                               20%b


                                                                                                         34-59%c
                                                                                                                                           29%
                                                                                                                                        0-54%d
                                                                                                                                        0-53%e


                                                                                                                                                                         20%
                                                                                                                                                                      23-45%


                                                                                                                                                                                                      30%h
                                                                                                                                                                                                      28% i

                                                                                                                                                                                                                                     15-40%




                                                                                                                                                                                                                                                                                    40%
                                  Rate




                                                                                                          15-25%




                                                                                                                                                                                                                                                        17-50%
                                                                                                                                                                                                                                                                  15%
                                                                                                                                                                                                                                                                  30%
                                  System



                                                                     No



                                                                                                                           Independent estimation
                                                                                                                                 Added to Income
                                                                                                                                                    Added to Income
                                                                                                                                                    Added to Income




                                                                                                                                                                                               Added to Income
                                            Independent estimation


                                                                                Independent estimation
                                                                                                         Added to Income




                                                                                                                                                                Nof
                                                                                                                                                                      Independent estimation
                                                                                                                                                                                       Yes g
                                                                                                                                                                                                             ?


                                                                                                                                                                                                                     Independent estimation
                                                                                                                                                                                                                                        No
                                                                                                                                                                                                                           Added to Income
                                                                                                                                                                                                                                                             ?
                                                                                                                                                                                                                                              Added to Income j




                                                                                                                                                                                                                                                                       Added to Income
                                                                                                                                                                                                                                                                  Independent estimation
                                                                                                                                                                                                                                                                  Independent estimation
                                                                                                                                                                                                                                                                                    Nok
Capital Gains Tax in Europe




                                                                                                         Czech Republic




                                                                                                                                                                                                                                                                  United Kindom
                                                                                                                                                                                               Netherlands




                                                                                                                                                                                                                                                                  Switzerland
                                                                                                                                                                                               Luxemburg
                                  Country




                                                                                                                           Denmark



                                                                                                                                                    Germany




                                                                                                                                                                                                                                              Romania
                                                                                                                                                                                                                     Portugal


                                                                                                                                                                                                                                              Slovenia
                                                                     Belgium




                                                                                                                                                                                                                     Norway
                                                                                                                           Finland




                                                                                                                                                                                                                                                                  Sweden
                                            Austria


                                                                                Cyprus




                                                                                                                                                    France




                                                                                                                                                                                                                     Poland
                                                                                                                                                               Greece
                                                                                                                                                               Ireland




                                                                                                                                                                                                                                                                  Spain
                                                                                                                                                               Italy
                                                                                                                                                                                                                 e         There is a full tax release for private landlords after two years
                              a   25% for capital yield and 35% for corporation tax.                                                                                                                                       of ownership of the selling real estate.
                              b   The rate is calculated on the difference between the value of pro-                                                                                                             f         Capital Gains Tax has been abolished since November 9th, 1995
                                  perty as at the date of dispose and the value as at 1-1-1980 the                                                                                                               g         There is a full tax release if the real estate is transferred at least
                                  latter being the base of tax valuation. Some exception applies for                                                                                                                       five years after its purchase or construction.
                                  foreigners, for sale of agricultural land, and for sale of owner                                                                                                               h         Due to income taxation system, capital gains are treated as
                                  occupied house.                                                                                                                                                                          „investment income“ and are taxed with a single rate.
                              c   There is a full release for owner-occupied houses                                                                                                                              i         Homeowners who have own the house for at least two years and
                              d   This tax is called «impôt sur le plus-values immobilières» and it                                                                                                                        they were living in it for at least one of the last two years befo-
                                  is calculated on the difference between the sale price and pur-                                                                                                                          re the sale, do not pay this tax.
                                  chase price. The purchase price is re-evaluated according to a                                                                                                                 j         Capital Gains Tax is applicable when there are less than 3 years
                                  special index published every year. This difference is reduced by                                                                                                                        elapsed from acquisition to disposition of property.
                                  5% for each year of ownership after the second year. The result                                                                                                                k         All the cantons apply this kind of tax but real estate property is
                                  amount is reduced by 914 Euro.                                                                                                                                                           subject to an exemption.
 38
                                 Transfer tax                                                                Country                                                Rate

                                 Transfer tax is the only kind of taxation                                   Austria                                                3,5%
                                 adopted by all European countries except                                    Belgium                                        6a-12,5%
                                 Poland. Contrary to all other taxes, transfer                                                             (droit d’ enregistrement)b
                                 tax applies exclusively on real estate proper-                              Cyprus                                                 5-8%
                                 ty. Although it seems to be another type of                                 Czech Republic c                                   5%
                                 capital taxation, this is not true. According to                            Denmark                         0,6-1,2% (stamp duty)d
                                 tax terminology, transfer tax as well as V.A.T.                             Finland                                       1,6-4 % e
                                 and stamp duties (and some other taxes                                      France                                         4,89 % f
                                 which are not related to real estate property,
                                                                                                             Germany                                                3,5 %
                                 such us tariffs, tobacco tax, alcohol tax etc.)
                                                                                                             Greece                                             9-11% g
                                 are different kind of taxation of the cost.
                                 Calculation base of transfer tax is the selling                             Ireland                                                 9%
                                 price of real estate property. In majority of                               Italy                                              3-10 % h
                                 European countries transfer tax is applied by                               Luxemburg                                           1,4-8 %
                                 a quite small tax rate. Otherwise danger ent-                               Netherlands                                              6%
                                 ails for the transfer of immovable property to                              Norway                                                 2,5%
                                 become so burdensome that the investing                                     Poland                                                   No
                                 value of property will be retracted. Only in                                Portugal i                8 %, (10% for urban property
                                 three countries, Belgium, Greece and Italy,                                                                       or building land)
                                 transfer tax can exceed the rate of 10%.                                    Romania                                         ?
                                                                                                             Slovenia                                     2%
                                                                                                             Spain                                        7%
                                                                                                             Sweden      1,5 % (individuals) j-3 % (companies)
                                                                                                             Switzerland                               1-3 % k
                                                                                                             United Kindom                0-4% (stamp duty) l




                                                                                                                                                                                 Taxation of Transactions in Europe
Transfer Tax in E.U. Countries




                                 a   The reduced rate is applicable in case of first domicile, han-            decreased tax-rate of 3% is applied in cases of main resi-
                                     dicapped people and small rural properties.                               dencies or real estate of artistic, historical and archaeolo-
                                 b   In Flanders, these rates are 5-10% correspondingly.                       gical interest.
                                 c   Real-Estate transactions are taxed according to the family          i     In Portugal, transfer tax (SISA) is collected by the munici-
                                     tie between the seller and the buyer. The rate of 5 % is the              palities. There are many exceptions from that tax, such as:
                                     maximum one and is calculated on the larger value amongst                 purchases of immovable property for resale under certain
                                     the selling price and the price calculated according to the               conditions, purchase of building land and constitution of
                                     rules for price estimation.                                               surface rights if property is intended exclusively for housing,
                                 d   The stamp duty is calculated upon the market value of pro-                acquisition of property intended for the construction of
                                     perty.                                                                    hotel, transfers between companies authorised to be taxed
                                 e   The first rate is calculated on the transfer price of shares              by their consolidated profit provided that those transfers are
                                     and the second one on real property.                                      operated during the tax periods in which the authorisation
                                 f   This Transfer Tax is applied on lodgings, professional or                 is in force, and many others. However in certain conditions
                                     commercial buildings and ground including farmland. This                  for instance in relation to the transfer of a building or an
                                     particular single rate replaced the previous – more compli-               apartment exclusively intended to dwelling, there are some
                                     cated – system according to which the transfer of real esta-              reduced rates between 0 and 26 % of transfer tax.
                                     te property was surcharged with many rates varying from             j     There is a proposal by the Committee of tax on real estate
                                     18,5 to 20,6%..                                                           property to increase this to 1,725 % to finance the abolish-
                                 g   If there is not a fire station in the city tax rates are 7 and 9%         ment inheritance tax between spouses.
                                     correspondingly. There is no tax or reduced rates are appli-        k     It depends on the canton.
                                     cable in case of first domicile or small rural properties.          l     There is no transfer tax for property value less than 86.400
                                 h   In Italy transfer tax is applicable only in cases, where                  Euro. The highest rate is applicable on property value over
                                     exempt from V.A.T such as the residential real estate. The                360.000 Euro.



 40                                                                                                                                                                                     41
                                                                                                                                                          Value added tax                                     • Italy, lowering the VAT percentage from
                                                                                                                                                                                                                20 % down to 10 %,
                                                                                                                 Sicherung und                            General characteristics
                                                                                                                 Beitreibung von                          V.A.T is the only kind of tax that is governed      • Netherlands, for dwellings older than 15
                                                                                                                                                          exactly by the same rules where it is imposed.        years, from 17,5 down to 6%,
                                                                                                                 Mietforderungen                          These rules are determined at international
                                                                                                                 von Hans Reinold Horst                   level and the countries, which adopt it, have       • United Kingdom, only the Isle of Man in
                                                                                                                                                          only the discretion of appointing its rate and        United Kingdom, from 17,5 down to 6%,
                                                                                                                 Aus der Reihe                            its object according to international tax law.
                                                                                                                                                          Tax theory describes V.A.T. as a general con-       • Belgium, for houses older than 5 years
                                                                                                                 Wohnen –                                 sumption tax, which is imposed, on the prices         from 21 % down to 6 %,
                                                                                                                 Recht & Praxis                           of goods and services in any stage of dealing.
Union Internationale de la Propriété Immobiliere – U.I.P.I.




                                                                                                                                                          The main characteristic of this kind of tax is      • France for houses older than 2 years, from
                                                                                                                 ISBN 3-927776-54-8                       its „financial neutralism“ which means that           20, 6 down to 5,5 %,
                                                                                                                  Deutschland steht die größte Insol-     inland, the akin goods meet exactly the same
                                                                                                                  venzwelle der Nachkriegsgeschichte      tax-treatment by V.A.T. Another interesting         • Portugal from 17% down 5/12 % and
                                                                                                                  bevor. Schon im ersten Halbjahr 2002    point of V.A.T. is that its base must always be
                                                                                                                  sind 18 000 Unternehmensinsol-          effective and not estimated which means that        • Spain for repairing but not renovation from
                                                                                                                  venzen zu verzeichnen; so viel wie im   it is necessary for the imposition of this tax to     16 % down to 7 %.
                                                                                                                  gesamten Jahr 1994. Auch private        be a specifically assessed cost or value.
                                                                                                                  Insolvenzen nehmen dras-tisch zu.
                                                                                                                  Gerechnet wird im Jahre 2002 mit
                                                                                                                                                          As regards real estate property, V.A.T can be       The time for enforcement of this directive
                                                                                                                  insgesamt 30 000 Privat-konkursen.      imposed on three different sectors that are:        was from 01.01.2000 until 31.12.2002.
                                                              Die Bau- und Wohnungswirtschaft ist von dieser Entwicklung stark betroffen. Im Bereich
                                                              der organisierten Wohnungsunternehmen belaufen sich die Mietaußenstände pro Jahr auf        a) At the stage of construction of a building,
                                                              796 Mio. Euro. Im Bereich der organisierten privaten Haus-, Wohnungs- und                   especially upon the cost of materials and
                                                              Grundeigentümer sind Außenstände an Mietforderungen von rund 1,1 Mrd. Euro zu ver-          building work.
                                                              zeichnen. Dies ergibt ein insgesamtes Mietforderungsvolumen von rund 1,9 Mrd. Euro.
                                                              Die nicht in Verbänden organisierten Vermieter sind dabei ebenso nicht berücksichtigt wie   b) With the chance of a transaction upon the
                                                              Mietausfälle infolge des ständig wachsenden Wohnungsleerstandes. Diese Entwicklung          sale price and
                                                              bringt insbesondere den privaten Vermieter in eine bedrohliche Situation. Er muss aus den
                                                              Mieten Zins- und Tilgungsleistungen für kreditfinanzierte Immobilien erbringen und dar-
                                                              über hinaus laufend in die Immobilie investieren. Seine Eigenkapitaldecke reicht in den
                                                                                                                                                          c) On the income that derives from the rent
                                                              allermeisten Fällen nicht aus, um Mietforderungsausfälle abzufangen.                        of a real estate.
                                                              Die Broschüre zeigt Wege aus diesem Dilemma auf. Neben vorbeugenden Maßnahmen,
                                                              schon bei der Auswahl des Mieters und der Prüfung seiner Bonität, werden wichtige Hin-      Studying the next table, we can realize that
                                                              weise zur Gestaltung des Mietvertrags gegeben. Vor allem liegt das Schwergewicht der        all the European countries except Czech,
                                                              Broschüre auf der Realisierung von ausstehenden Mietforderungen. Neben den rechtlich        Poland and Cyprus has adopted at least one
                                                              zur Verfügung stehenden Möglichkeiten werden vor allem taktische Hinweise zur Vorge-        of three above-mentioned V.A.T. forms, upon
                                                              hensweise des Vermieters bei erlittenen Mietrückständen gegeben. Der Autor rundet sei-      real estate property. On the other hand, Italy
                                                              ne Darstellung mit ausführlichen Hinweisen zu den notwendigen Formalien der vom Ver-        is the only country that imposes V.A.T. on
                                                              mieter abzugebenden Erklärungen sowie mit angebotenen Mustertexten ab. Als Anlage ist       construction, transaction and rental income
                                                              insbesondere ein ausführliches Adressenverzeichnis beigefügt.




                                                                                                                                                                                                                                                              Value added Tax
                                                                                                                                                          of immovable property.
                                                              Erhältlich bei
                                                                                                                                                          Directive 1999/85/CE
                                                              Haus & Grund Deutschland – Verlag und Service GmbH
                                                              Mohrenstraße 33 · 10117 Berlin                                                              October 22, 1999 the Council of Ministers of
                                                              Tel. (030) 2 02 16-204 · Fax (030) 2 02 16-580                                              EU adopted the directive 1999/85/CE accor-
                                                                                                                                                          ding to which it is possible for some coun-
                                                                                                                                                          tries (who have accepted it) to enforce a
                                                                                                                                                          reduced VAT rate on labour intensive servi-
                                                                                                                                                          ces, among which house renovation and
                                                                                                                                                          repair services, excluding materials. In fact
                                                                                                                                                          few countries have accepted this possibility,
                                                                                                                                                          to benefit from it. These are mainly:


  42                                                                                                                                                                                                                                                             43
                                                                                                                                                                                                                                                                                                                                                    a The reduced rate of 6 % is applicable in case of renovation




                                                                                                                                                                Nod




                                                                                                                                                                                                                            Noh




                                                                                                                                                                                                                                                                                                                       25 % (commercial rentals)m
                                                     10% (dwellings) 20% (others)
                                                                                       No
                                                                                                           No
                                                                                                                    No
                                                                                                                                     No
                                                                                                                                      ?
                                                                                                                                                                No


                                                                                                                                                                                                No
                                                                                                                                                                                               No
                                                                                                                                                                          20 % (commercial rentals)
                                                                                                                                                                                                       ?
                                                                                                                                                                                                      No


                                                                                                                                                                                                                            No
                                                                                                                                                                                                                             ?
                                                                                                                                                                                                                                                  ?



                                                                                                                                                                                                                                                                                             16% (professional use)
                                     Rental Income




                                                                                                                                                                                                                                                                                                                                    Applicable
                                                                                                                                                                                                                                                                                                                      17,5% (commercial rentals)
                                                                                                                                                                                                                                                                                                                                                      of a building constructed at least 5 years in the past.
                                                                                                                                                                                                                                                                                                                                                    b A building is regarded as new until December 31 of the
                                                                                                                                                                                                                                                                                                                                                      second year which follows the first occupation.
                                                                                                                                                                                                                                                                                                                                                    c With the exception of real estate agencies for whom the r.e.p.
                                                                                                                                                                                                                                                                                                                                                      is the object of their commercial activity.
                                                                                                                                                                                                                                                                                                                                                    d In the normal case, landlords choose the opportunity of tax
                                                                                                                                                                                                                                                                                                                                                      exemption instead of deducting certain amounts from taxa-
                                                                                                                                                                                                                                                                                                                                                      tion
                                                                                                                                                                                                                                                                                                                                                    e V.A.T. will impose on real estate transactions after 1-1-2005
                                                                                                                                                                                                                                                                                                                                                    f In cases of renovation a decreased tax-rate of 10 % is appli-
                                                                                                                                                                                                                                                                                                                                                      cable.
                                                                                                                                                                                                                                                                                                                                                    g The decreased tax-rate of 4% is applicable in cases of non-
                                                                                                                                                                                                                                                                                                                                                      luxury first residences if the buyer is not a holder of rights
                                                                                                                                                                                                                                                                                                                                                      on other residence purchased with tax reduction and he isn’t
                                                                                                                                                                                                                                                                                                                                                      also a holder of rights on other residences in the same com-
                                                                                                                                                                                                                                                                                                                                                      mune. On the other hand the increased tax-rate of 20 % is
                                                                                                                                                                                                                                                                                                                                                      applicable in cases of luxury residences.
                                                                                    21% (New buildings)b


                                                                                                                    Noc




                                                                                                                                                                                    Noe
                                                                                                                                                                                                                                                                                                                                                    h V.A.T. may voluntarily be imposed on commercial rentals if
                                                     0 or 20%


                                                                                                           No


                                                                                                                                     25% (for buildings only)
                                                                                                                                                            ?
                                                                                                                                                                No
                                                                                                                                                                No


                                                                                                                                                                                   No
                                                                                                                                                                          10% (4-20%)g
                                                                                                                                                                                                                        ?
                                                                                                                                                                                                      19% (New buildings)




                                                                                                                                                                                                                                                                             ?
                                                                                                                                                                                                                                                  20% (first transaction only)

                                                                                                                                                                                                                                                                                 16% (professional use)
                                                                                                                                                                                                                                                                                                                                                      the lessor is subjected to V.A.T.
                                     Transactions




                                                                                                                                                                                                                            24% (New buildings)
                                                                                                                                                                                                                                            No
                                                                                                                                                                                                                                              ?



                                                                                                                                                                                                                                                                                     7 (residential use)

                                                                                                                                                                                                                                                                                                                       No
                                                                                                                                                                                                                                                                                                                       No
                                                                                                                                                                                                                                                                                                                       No
                                                                                                                                                                                                                                                                                                                                                    i At present, there is no V.A.T. in Poland. Introduction is plan-
                                                                                                                                                                                                                                                                                                                                                      ned but the rate is not determined yet.
                                                                                                                                                                                                                                                                                                                                                    j At present, there is no V.A.T. in Slovenia. V.A.T. will be intro-
                                                                                                                                                                                                                                                                                                                                                      duced on 1 July 1999 at the rate of 19 % and 8%. It seems
                                                                                                                                                                                                                                                                                                                                                      that the construction as well as the commercial rentals will
                                                                                                                                                                                                                                                                                                                                                      be subject to a V.A.T. 19 %. No V.A.T. has been foreseen for
                                                                                                                                                                                                                                                                                                                                                      apartments.
                                                                                                                                                                                                                                                                                                                                                    k Construction of dwellings is subject to a lower rate 8,5 %.
                                                                                                                                                                                                                                                                                                                                                    l According to 2000 report, there are many other taxes in
                                                                                                                                                                                                                                                                                                                                                      Spain, upon the construction of a building, such as con-
                                                                                                                                                                                                                                                                                                                                                      struction tax 2-4 %, construction permit 2-3 %, registration
                                                                                                                                                                                                                                                                                                                                                      fees 0,5 % „Financement d’ execution“ 0,5 %
                                                                                                                                                                                                                                                                                                                                                    m The registration in VAT for the commercial rentals is volun-
                                                                                                                                                                                                                                                                                                                                                      tary, but it makes VAT deductible for the property owner.
                                                                                    6-21%a




                                                                                                                                                                             20 %f




                                                                                                                                                                                                                                                       20%k
                                                                                                                                                                                                                                                  No V.A.T.m
                                     Construction

                                                     20%


                                                                                                           No
                                                                                                                    ?
                                                                                                                                     25%
                                                                                                                                     22 %
                                                                                                                                                                20,6 %
                                                                                                                                                                  15 %
                                                                                                                                                                            18 %
                                                                                                                                                                          12,5 %


                                                                                                                                                                                                      15%
                                                                                                                                                                                                      19%
                                                                                                                                                                                                                            24%
                                                                                                                                                                                                                              No
                                                                                                                                                                                                                            16 %
                                                                                                                                                                                                                                                         ?




                                                                                                                                                                                                                                                                                                                             25 %
                                                                                                                                                                                                                                                                                                                       Applicable
                                                                                                                                                                                                                                                                                                                          17,5%
V.A.T. on R.E.P. in E.U. Countries




                                                                                                                                                                                                                                                                                                                                                                                                                          V.A.T. on R.E.P. in E.U. Countries
                                                                                                                    Czech Republic




                                                                                                                                                                                                                                                                                                                       United Kindom
                                                                                                                                                                                                      Netherlands




                                                                                                                                                                                                                                                                                                                       Switzerland
                                                                                                                                                                                                      Luxemburg




                                                                                                                                                                                                                                                  Slovenia j
                                     Country




                                                                                                                                     Denmark



                                                                                                                                                                Germany




                                                                                                                                                                                                                                                  Romania
                                                                                                                                                                                                                            Portugal
                                                                                       Belgium




                                                                                                                                                                                                                            Poland i
                                                                                                                                                                                                                            Norway
                                                                                                                                     Finland




                                                                                                                                                                                                                                                                                                                       Sweden
                                                     Austria


                                                                                                           Cyprus




                                                                                                                                                                France


                                                                                                                                                                          Greece
                                                                                                                                                                          Ireland




                                                                                                                                                                                                                                                  Spain
                                                                                                                                                                          Italy




 44                                                                                                                                                                                                                                                                                                                                                                                                                              45
                                                                                                                                                                                                                                                                                                                                                                                                                                  a Others than the annual property tax.




                                    Other Taxes




                                                                   No
                                                                                       Tax on the grounds to be built, tax on the
                                                                                      buildings given up, tax for the parking lots
                                                                                            located in front of the houses, on the
                                                                                                   desks, the wells, antennas etc.
                                                                                                                                     „Road construction tax“, „Immovable proper-
                                                                                                                                     ty town tax“c, „improvement tax“, „Sewerage
                                                                                                                                         tax“, „Building license fee“, „Stump duty“




                                                                                                                                                                                                                                                                                                                                                    Other Taxes
                                                                                                                                                                                      No
                                                                                                                                                                                      No
                                                                                                                                                                                                       „Church tax“ 1-2,25%f , „National pension
                                                                                                                                                                                                         and health insurance contribution“ 5,7 %
                                                                                                                                                                                                          „Departmental rates“ 5-10%,“Regional
                                                                                                                                                                                                           rates“ 1,5%,g many other trivial taxes,
                                                                                                                                                                                                                           Unused Lodgings Tax h
                                                                                                                                                                                                                                                                   „Wage Cost“, i „Oil and Gas tax“
                                                                                                                                                                                                                                                                                „Church Tax“ 8-9% j

                                                                                                                                                                                                                                                     of Agricultural Insurance Organization“ 0,6% n




                                                                                                                                                                                                                                                     0.01 Euro/kWh of electric power (+24% VAT)
                                                                                                                                                                                                                                                                       Stamp Duties,p Compensation

                                                                                                                                                                                                                                                        „Waste disposal tax“, „Environmental levy“,
                                                                                                                                                                                                                                                             „Land drainage tax“, „Additional local
                                                                                                                                                                                                                                                                    taxes over & above income tax“
                                                                                                                                                                                                                                                                                                   ?
                                                                                                                                                                                                                                                                                             Ecotax

                                                                                                                                                                                                                                                                                                   ?
                                                                                                                                                                                                                                                                                                   ?




                                                                                                                                                                                                                                                                                                                                                                                    ?

                                                                                                                                                                                                                                                                                                                                                                                    ?

                                                                                                                                                                                                                                                                                                                                                                                                                        Vary
                                                                                                                                                                                                                                                                                                                                                                                                                           ?
                                                                                                                                                                                                                                                          „Stamp Duty“ 3 %, „Contribution in favor


                                                                                                                                                                                                                                                                           for expropriated property




                                                                                                                                                                                                                                                                                                                                                                                   No


                                                                                                                                                                                                                                                                                                                                                                                                        Various energy taxes
                                                                                                                                                                                                                                                                                                                                                                                                                                  b There are many different kinds of municipal rates, such as
                                                                                                                                                                                                                                                                                                                                                                                                                                    tax for abandoned buildings, building land, offices, anten-
                                                                                                                                                                                                                                                                                                                                                                                                                                    nas, shafts etc.
                                                                                                                                                                                                                                                                                                                                                                                                                                  c This is a small amount, which is imposed to property owners
                                                                                                                                                                                                                                                                                                                                                                                                                                    in order to finance educational purposes.
                                                                                                                                                                                                                                                                                                                                                                                                                                  d A new law which provides some other municipal taxes is
                                                                                                                                                                                                                                                                                                                                                                                                                                    under discussion in the parliament
                                                                                                                                                                                                                                                                                                                                                                                                                                  e Communal income tax is imposed with a flat rate between
                                                                                                                                                                                                                                                                                                                                                                                                                                    15-20 % on earned income of individuals and the estates of
                                                                                                                                                                                                                                                                                                                                                                                                                                    deceased persons. The average for 2000 is 17,67 %.
                                                                                                                                                                                                                                                                                                                                                                                                                                  f It is paid by individuals who are members of either the Evan-
                                                                                                                                                                                                                                                                                                                                                                                                                                    gelical-Lutherian Church or the Orthodox Church. The ave-
                                                                                                                                                                                                                                                                                                                                                                                                                                    rage for 2000 is 1,3 %.
                                                                                                                                                                                                                                                                                                                                                                                                                                  g Both these taxes are calculated on the base of „impot fon-
                                                                                                                                                                                                                                                                                                                                                                                                                                    cier“
                                                                                                                                                                                                                                                                                                                                                                                                                                  h This tax applied within the Parisian Region, the Agglome-
                                                                                                                                                                                                                                                                                                                                                                                                                                    ration of Lille, Bordeaux, Toulouse, Lyon, Monpellier, Nice
                                                                                                                                                                                                                                                                                                                                                                                                                                    and the Agglomeration of Cannes Grasse Antibes.
                                                                                                                                                                                                                                                                                                                                                                                                                                  i Insurance fees for health, pension and unemployment relief).
                                                                                                                                                                                                                                                                                                                                                                                                                                  j Church Tax is applied on the annual income of the members
                                                                                                                                                                                                                                                                                                                                                                                                                                    of Roman Catholic and Protestant Church.
                                                                                                                                                                                                                                                                                                                                                                                                                                  k Moreover in Greece there are also „potential municipal
                                                                                                                                                                                                                                                                                                                                                                                                                                    taxes“ which are collected by local authorities for any dif-
                                                                   No
                                                                                      No



                                                                                                                                     No


                                                                                                                                                                                      No
                                                                                                                                                                                      No
                                                                                                                                                                                                        No

                                                                                                                                                                                                                           No
                                                        In Money




                                                                                                                                                                                                                                                         (no other information)
                                                                                                                                                                                                                                                                       1-25%m

                                                                                                                                                                                                                                                                                                         Yes o

                                                                                                                                                                                                                                                                                                                    Yes


                                                                                                                                                                                                                                                                                                                              ?
                                                                                                                                                                                                                                                                                                                            No
                                                                                                                                                                                                                                                                                                                            Nor
                                                                                                                                                                                                                                                                                                                             No




                                                                                                                                                                                                                                                                                                                                                                           In Money

                                                                                                                                                                                                                                                                                                                                                                                 No


                                                                                                                                                                                                                                                                                                                                                                                                         No
                                                                                                                                                                                                                                                                                                                                                                                                        Nov
                                                                                                                                                                                                                                                                                                                                                                                                                                    ferent reason than the ones which are covered by municipa-
                                                                                                                                                                                                                                                                                                                                                                                                                                    lity rates.
                                    Contribution For




                                                                                                                                                                                                                                                                                                                                                    Contribution For
                                                                                                                                                                                                                                                                                                                                                                                                                                  l The amount of contribution in land is calculated upon the
                                     City Planning




                                                                                                                                                                                                                                                                                                                                                     City Planning
                                                                                                                                                                                                                                                                                                                                                                                                                                    r.e.p area. The contribution is normally 10-50 %. A rate of
                                                                                                                                                                                                                                                                                                                                                                                                                                    60 % is applicable in case of property of area higher than




                                                                                                                                                                                                                                                                  Yes




                                                                                                                                                                                                                                                                                                                                                ?




                                                                                                                                                                                                                                                                                                                                                                           ?

                                                                                                                                                                                                                                                                                                                                                                         Yest



                                                                                                                                                                                                                                                                                                                                                                                                                         ?
                                                                                                                                                                                                                                                                                                         Per rented house
                                                                                                                                                                                                                                                                                                                                                                                                                                    10000 m2 in one single piece of land.




                                                                                                                                                                                                                                                                                                           or apartment
                                                                                                                                                                                                                                                                                                                                                                                                                                  m The amount of contribution in land is calculated upon the
                                                                                                                                                                                                                                                                                                                                                                                                                                    value of remaining land.
                                                                   No
                                                        In Land



                                                                                      No



                                                                                                                                     No


                                                                                                                                                                                      No
                                                                                                                                                                                      No
                                                                                                                                                                                                        No

                                                                                                                                                                                                                           No




                                                                                                                                                                                                                                                             l




                                                                                                                                                                                                                                                                                                               No




                                                                                                                                                                                                                                                                                                                               No
                                                                                                                                                                                                                                                                                                                               No
                                                                                                                                                                                                                                                                                                                               No




                                                                                                                                                                                                                                                                                                                                                                         In Land

                                                                                                                                                                                                                                                                                                                                                                                        No


                                                                                                                                                                                                                                                                                                                                                                                                        No
                                                                                                                                                                                                                                                                                                                                                                                                        No
                                                                                                                                                                                                                                                                                                                                                                                                                                  n Both these rates are applied on the rent income.




                                                                                                                                                                                                                                                     10-60%
                                                                                                                                                                                                                                                                                                                                                                                                                                  o Under the existing Planning & Development Act, 20 % of all
                                                                                                                                                                                                                                                                                                                                                                                                                                    housing developments must b e available for social housing.
                                                                                                                                                                                                                                                                                                                                                                                                                                    This percentage may be calculated on the basis of cost or of
                                                                                                                                                                                                                                                                                                                                                                                                                                    units in consultation with local authority
                                                                                                                                                                                                                                                                                                                                                                                                                                  p Annual rent of houses or apartments does not exceed the
                                                                                                                                                                                                                                                                                                                                                                                                                                    amount of 19.230 Euro, are exempted from the stamp duty.
                                                                                                                                                                                                                                                                                                                                                                                                                                  q There are different municipal rates according to the region.

                                                                                                                                                                                                                                                                      Lib. appointed k Different bases
                                                                                                                                                                                                                                                                                                                                                                                                                                    The average for the whole country is 5,8 Euro per 2.272




                                                                                                                                                                                                                                                                                                                                                                         „Property Tax“, „Local Tax“s
                                                                                                                                                                                                                                                                                                                                                                                                                                    Euro of real estate property value.
                                                                   Rateable value
                                                        Base



                                                                                    Lib. appointedb



                                                                                                                                     ?




                                                                                                                                                                                                        Annual income

                                                                                                                                                                                                                           20-30% „impôt foncier“


                                                                                                                                                                                                                                                     Net yield




                                                                                                                                                                                                                                                                                                                            R.E.P. value q




                                                                                                                                                                                                                                                                                                                                                                                               Base




                                                                                                                                                                                                                                                                                                                                                                                                         26-35% Annual income
                                  Municipality Ratesa




                                                                                                                                                                                                                                                                                                                                                    Municipality Rates
                                                                                                                                                                                                                                                                                                                                                                                                                                  r Some builders may have to finance public investments to get




                                                                                                                                                                                                                                                                                                                                                                             Very nominal amounts



                                                                                                                                                                                                                                                                                                                                                                                                        Included in income taxu
                                                                                                                                                                                                                                                                                                                                                                                                                                    a building permit. In that case, an agreement will be made
                                                                                                                                                                                                                                                                                                                                                                                                                                    during the planning process. Normally this practice takes
                                                                                                                                                                                                                                                                                                                                                                                                                                    place only in the case of great projects such as new shop-
Other Taxes on R.E.P. in Europe




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    Other Taxes on R.E.P. in Europe
                                                                                                                                                                                                                                                                                                                                                                                                                                    ping centres.
                                                                                                                                                                                      Nod
                                                                                                                                                                                       No




                                                                                                                                                                                                                                                                                                         40 Euro

                                                                                                                                                                                                                                                                                                                    Yes


                                                                                                                                                                                                                                                                                                                             ?

                                                                                                                                                                                                                                                                                                                            No
                                                                                                                                                                                                                                                                                                                             ?
                                                                                                                                                                                                                                                                                                                             ?




                                                                                                                                                                                                                                                                                                                                                                                         ?




                                                                                                                                                                                                                                                                                                                                                                                                                      ?
                                                                                                                                                                                                                                                                                                                                                                                                                                  s Both these taxes are capital taxation calculated upon the
                                                                                                                                                                                                                                                                                                                                                                                                                                    value of property.
                                                                                                                                                                                                                                                                                                                                                                                                                                  t The final amount is dependent on the building licence to be
                                                        Rate

                                                                   max 1%




                                                                                                                                     0,15%




                                                                                                                                                                                                       15-20%e




                                                                                                                                                                                                                                                     2-10 %




                                                                                                                                                                                                                                                                                                                               Lib. appointed




                                                                                                                                                                                                                                                                                                                                                                         Rate
                                                                                                                                                                                                                                                                                                                                                                                                                                    awarded and building works to be carried through.
                                                                                                                                                                                                                                                                                                                                                                                                                                  u The municipalities are free to impose additional local taxes
                                                                                                                                                                                                                                                                                                                                                                                                                                    and fees in accordance with the federal and cantonal law,
                                                                                                                                                                                                                                                                                                                                                                                                                                    and can decide almost freely upon their amount. The inha-
                                                                                                                                                                                                                                                                                                                                                                                                                                    bitants of some village in the Bernese mountains pay three
                                                                                                                                                                                                                                                                                                                                                                                                                                    times as much tax as the residents of the most favourable




                                                                                                                                                                                                                                                                                                                                                                                                        United Kingdom
                                                                                                                                                                                                                                                                                                                                                                                                                                    cantons Zug, Nidwalden or Schwyz.
                                                                                                                                                                                      Czech Republic




                                                                                                                                                                                                                                                                                                                                                                                                                                  v Both the kinds of contributions are subject of new develop-
                                                                                                                                                                                                                                                                                                                                                                                                                                    ments.
                                                                                                                                                                                                                                                                                                                            Netherlands




                                                                                                                                                                                                                                                                                                                                                                                                        Switzerland
                                                                                                                                                                                                                                                                                                                            Luxemburg
                                    Country




                                                                                                                                                                                                                                                                                                                                                    Country
                                                                                                                                                                                      Denmark




                                                                                                                                                                                                                                                     Germany




                                                                                                                                                                                                                                                                                                                                                                                   Romania
                                                                                                                                                                                                                                                                                                                            Portugal




                                                                                                                                                                                                                                                                                                                                                                                   Slovenia
                                                                                      Belgium




                                                                                                                                                                                                                                                                                                                            Norway
                                                                                                                                                                                                        Finland




                                                                                                                                                                                                                                                                                                                                                                                                        Sweden
                                                                   Austria




                                                                                                                                     Cyprus




                                                                                                                                                                                                                           France




                                                                                                                                                                                                                                                                                                                            Poland
                                                                                                                                                                                                                                                                           Greece

                                                                                                                                                                                                                                                                                                         Ireland




                                                                                                                                                                                                                                                                                                                                                                                   Spain
                                                                                                                                                                                                                                                                                                                    Italy




 46                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        47
              General remark                                   Transfer tax                                     Capital gains taxation                            capital taxation, which, for the property
                                                               • Belgium, Greece and Italy have the highest     • Belgium, Greece, Poland and Switzerland         owners, is the most unfair and dangerous
              • Real estate property owners are heavi-           tax-rate that is, 12,5%, 11% and 10% cor-        do not levy on capital gains.                   type of taxation.
                ly taxed in most European countries.             respondingly.
                In some of them there is simultaneous-                                                          Transfer tax                                      b) Demand abolition of the taxes levied on
                ly both a large number of taxes as well as     V.A.T.                                           • Slovenia has the lowest tax-rate that is 2%.    property, if used by owner and his/her fami-
                high tax rates, making the total bur-          • Sweden has the highest tax-rate on con-          Then it is Norway (2,5 %) and Austria and       ly, or due to his/her profession.
                den unbearable for the tax-payer, for exam-      struction cost, which is 25 % (According to      Germany with 3,5 %.
                ple in Italy and Germany and other coun-         1998 National Report). According to 2003                                                         c) Demand tax exemptions for various cate-
                tries also.                                      National Reports, Norway has the highest       V.A.T.                                            gories of immovable property, such as histo-
                                                                 tax-rate (24%) and Austria, Italy and Slo-     • According to 2003 National Reports, Ire-        rical buildings, agricultural land or forests,
              The highest taxation rates in European             venia have a tax-rate of 20%.                    land and Germany have the lowest tax-rate       any type of immovable property that cannot
              countries                                        • Slovenia has the highest tax-rate on first       (12,5 % and 15 % correspondingly). More-        be used or it’s use is being restricted by Sta-
                                                                 transaction, which is 20 %.                      over Belgium has a reduced tax-rate for         te,
              Income taxation                                  • Sweden has the highest tax-rate on com-          renovations (6 %)
              • Netherlands and Belgium have the highest         mercial rentals that is 25% (According to      • Cyprus, Czech Rep. France, Germany,             d) Demand tax exemptions for special cate-
                tax-rate (52%), according to 2003 Reports.       1998 National Report). According to 2003         Greece, Ireland, Norway, Poland, Sweden,        gories of persons, such as elderly or handi-
              • Austria, Luxemburg, France, Belgium,             National Reports, Italy and Austria have the     Switzerland and UK have no V.A.T. on            capped people, orphans, multichildren fami-
                Netherlands and Slovenia tax the late inco-      highest tax-rate (20%).                          transactions.                                   lies, etc.
                me group with a rate of 50% or more.                                                            • Belgium, Cyprus, Czech Rep. Denmark,
              • Germany, Cyprus, Portugal, Belgium,            The lowest taxation rates in European              France, Germany, Greece, Ireland, Nether-       e) Demand tax reductions in case of renova-
                Spain, Netherlands, UK, Sweden, Italy,         countries                                          lands, Norway, Poland and Portugal, have        tion of an old building, as there are nowadays
                Slovenia, Norway and Czech Rep. have no                                                           no V.A.T. on rental income.                     in Europe more old buildings than new ones.
                tax-exempt threshold.                          Income taxation
              • Germany, Cyprus, France, Greece and            • Sweden has the lowest income tax-rate that                                                       f) Demand tax exemptions for as greater part
                Poland, have additional taxes on income.         is 25 % for income over 45.230 Euro                                                              of the income or the capital transferred as
                Poland has the highest rate (22%).               (according to 2000 National Report).           What property organisations should                possible.
                                                               • Greece, has the highest tax-exempt thres-      demand?
              Ownership taxation                                 hold (8.400 Euro).
              • Norway has the highest tax-rates which are                                                      1. U.I.P.I.
                up to 1,1%.                                    Ownership taxation                               Harmonisation of various taxation systems in
              • Cyprus, Finland, Greece, Norway and            • Austria, Ireland, Netherlands, Slovenia and    Europe is one of the most difficult tasks of
                Spain, have both municipal and national          UK do not levy on ownership.                   EU. A high ranking EU official has recently
                ownership taxation.                            • Amongst the countries with ownership tax,      denounced that EU is planning such a pro-
              • Cyprus, Czech Rep. Denmark, Finland,             Greece has the highest tax-exempt thres-       ject. In such a case U.I.P.I. should stress to
                France, Germany, Norway, Poland and              hold which is 243.600 Euro for singles and     E.U. authorities that property owners are per-
                Spain have no tax-exempt thresholds.             487.200 Euro for married couples.              sistently mistreated, as they are already bur-
                                                                                                                dened by the taxes imposed by national
              Donations and Inheritance taxation               Donations and Inheritance taxation               governments and local authorities (they are
              • UK has the highest tax-rate for children and   • In Slovenia children and spouses are tax-      often taxed 2 or 3 times on the same item).
                spouses, which is 40%. Moreover, only            exempted, while in Norway only spouses         U.I.P.I. could accept harmonization only if it
                Belgium, Cyprus, Germany, Sweden and             are tax-exempted                               led to less burdensome treatment of property
                Spain have a tax-rate for children and spou-   • Ireland and UK have the highest tax-           owners.
                ses higher than 30%                              exempt thresholds for children which are
Conclusions




                                                                                                                                                                                                                    Conclusions
              • Czech Rep. and Poland have no tax-exempt         422.128 Euro and 331.245 Euro correspon-       2. National Organisations
                thresholds for children and spouses.             dingly.                                        National organisations of property owners
              • Belgium has the highest tax-rate for bro-      • Netherlands has the highest tax-exempt         should focus their attention not only on the
                thers (65%) and for strangers (80%).             thresholds for spouses, which is 484.691       afore-mentioned issues, but also they should:
                                                                 Euro.
              Capital gains taxation                           • Denmark and Luxemburg has the lowest           a) Demand the reduction of the burdensome
              • According to 2003 report, the Netherlands        tax-rate for strangers, which is 15 % only     taxes levied on real estate property, and espe-
                have the highest tax-rate (52%).                 (according to older data).                     cially the total abolition of annual property


48                                                                                                                                                                                                                    49
                                       Introduction                                                                                          nowadays in some international proclama-
                                                                                                                                             tions or even in the legislation of some coun-
                                       • Real Estate Property within the scope of                                                            tries). The basic misinterpretation is based on
                                         taxation                                                                                            the fact that tenants do not exercise their
                                       • The difficulties of the project                                                                     „right“ against the government that has
                                       • Methodology matters                                                                                 agreed to take this responsibility but against
                                       • Issues of taxation policy                                                                           the landlords, violating their more principal
                                           The social dimension of taxation                                                                  property rights. The temptation of the execu-
                                           Real estate property taxation as a factor of                                                      tive to transfer the cost of such social support
                                           fiscal policy                                                                                     on the providers of housing instead of intro-
                                           Real estate property taxation and admini-                                                         ducing some sort of housing or rent allowan-
                                           strative tax processes                                                                            ces is strong.
                                                                                                                                             Rent regulation is introduced usually as a
                                       Income Taxation                                                                                       temporary measure, but remains for decades
                                                                                                                                             or even centuries. Once the rent regulation is
                                       • Nature and form                                                                                     in force, it is always accompanied by restric-
                                       • Income tax in Europe                             Rentals report by RNDr. Tomislav Šime-             tions of the contractual freedom of lease and
                                       • The examples of chart „Total income taxa-        cek President of the Czech Republic pro-           rent agreements, because the tenants have
                                         tion of R.E.P. in Europe“                        perty owners association (OSMD)                    lost their mightiest weapon of the free mar-
                                       • Taxation on dominical habitation (owner          President of the rentals Committee of              ket they used to have, which was the threat
                                         occupied housing income taxation)                U.I.P.I.                                           of finding another landlord on the functio-
                                                                                                                                             ning housing market for the same market
                                       Capital Taxation in General                        Introduction                                       rent. The more severe the rent regulation is,
                                                                                                                                             then usually the more severe the restrictions
                                       • The problem of Real Estate Property Eva-         Rentals committee was one of the first             of the property rights of landlords are. When
                                         luation                                          U.I.P.I. committees that started its work after    combined with the communist class antago-
Table of Contents of Taxation Report




                                           The theoretic basis                            the first teamwork of the ad hoc Constitutio-      nism doctrine this developed in the previous
                                           The evaluation methods in practice             nal committee. Rental housing has been pro-        Eastern block countries into a system of
                                       • Real estate property ownership taxation          bably subjected to the most massive and            assigning tenants into privately owned hou-




                                                                                                                                                                                                U.I.P.I. Rentals Committee Report
                                           Taxation as a choice of tax legislator         severe oppression from state legislation as        ses, giving them permanent right to use and
                                           Structure of the tax                           compared to other real estate related activi-      exchange the assigned apartments with other
                                       • Taxation of donation and inheritance             ties. First rent regulatory measures and tenant    tenants for a symbolic „rent“, that was being
                                           Donation and inheritance as an object of       protection legislation were introduced during      set not by the market or sound economic cal-
                                           taxation                                       and after the World War I.                         culation, but by the state executive.
                                           Structure of the tax                           Most of these oppressive measures have been        Political influence and good international
                                       • Taxation of capital gains                        adopted mainly due to political than social or     organisation of tenants combined with the
                                           Matters of tax policy                          economical reasons. It has always been a           fact that the number of votes in elections, that
                                           Structure of the tax                           question of political climate, if the situation    the tenants can offer is usually an order of
                                                                                          in rental housing is improving or becoming         magnitude greater than the number of votes
                                       Taxation of Cost                                   worse. Introduction of these measures is usu-      of the landlords is threatening that similar
                                                                                          ally triggered by some socially sensitive situ-    tendencies may gain fertile soil in other than
                                       • Transfer tax                                     ation of the housing market such as signifi-       communist countries as well. Once such a
                                       • Value Added Tax                                  cant increase of rents in case of sudden shor-     system is established it is very hard to get rid
                                          General characteristics                         tage of vacancies (caused by war, earthqua-        of it, since many smart and wealthy tenants
                                          Directive 1999/85/CE                            ke or massive immigration) or scandalized          start to enjoy the advantage of living for
                                                                                          unscrupulous behaviour of some landlords           symbolic rents and may become influential
                                       Conclusions                                        during economical recession combined with          enough to keep the system in force for very
                                                                                          political pressure from tenant lobby. Recent-      long time, pretending that it is serving „so-
                                       • The highest taxes in European countries          ly it is often ideologically supported by inten-   cial justice“ and saves the state budget at the
                                       • The lowest taxes in European countries           tional misinterpretation of the so-called          same time.
                                       • What property organisations should               „right to housing“ (introduced as part of the      The roots of this violation of the basic human
                                         demand                                           concept of a welfare state and contained           rights upon which the western market eco-


 50                                                                                                                                                                                                    51
                                    nomy oriented civilisation is based and            2. Rent regulation or rules describe agree-        market solutions, comparison with more libe-      cess, it would be unobjectionable. But the
                                    which have been originally formulated in the       ment of the rent in different segments of the      ral countries and detailed economical analy-      promoters of these „quasi rights“ have some-
                                    Magna Charta can be understood from the            housing sector and also sets how these rents       sis of the losses caused by severe regulation     thing else in mind. What is claimed here is
                                    fact that the real basic human rights are all so   can be adjusted with time.                         of legal and economical conditions of rental      not the right to be left alone, free to build,
                                    called negative rights. These are rights giving                                                       sector. The existence of efficient allowances     buy or rent whatever shelter one can afford.
                                    every citizen the freedom of doing things          3. Shelter, rent or housing allowances, pro-       for people in social need is extremely impor-     Now demanded is a right to housing which
                                    where the others are only obliged not to inter-    vided by the public sector and serving as a        tant.                                             implies an obligation on the part of others to
                                    fere. While the newly introduced „positive         social net for people in social need to be able     frequent misuse of bricks and mortar subsi-      provide service for someone, who did not
                                    rights“, which do not belong among the real        to afford a certain minimum level of decent        dies has to be compared with personal means       take care to provide this service for himself.
                                    basic human rights and represent only the          housing. A very important question is whet-        tested rent allowances as an instrument much      This is a claim for positive right, which
                                    doctrine of a welfare state, are incorrectly       her these allowances are available also for        cheaper and better for those in real social       should be enforceable, if at all, only against
                                    mixed with the real human rights. These are        tenants in the private rental sector or whether    need, providing them with the freedom of          the government which has signed such a
                                    the right to work, right for medical care, right   the government has chosen instead bricks           choice of housing and full freedom of work-       legal document.
                                    for support after retirement, right for educa-     and mortar subsidies as its main instrument        force mobility decreasing thus unemploy-          It is a disguised, and therefore quite insi-
                                    tion, right for housing and we should not be       and tries to provide housing for deformed          ment and the level of other social benefits.      dious, demand for wealth. It has nothing to
                                    surprised if many more such „rights“ emerge        prices pretending that it is meant as a social     It is usually necessary to combine these          do with rights at all. In case of real rights, all
                                    in the future. All these „rights“ indicate in      net for the poor, but usually serves those         „public relation“ activities with plaintiff to    what is required of outsiders is non-interfe-
                                    fact that people who seek these commodities        most sly.                                          the constitutional courts that may force the      rence, but in this fraudulent case, there is an
                                    should get the same chance as others and in                                                           legislative bodies to change the existing         unwarranted claim for a myriad of material
                                    case of unavoidable misfortune have the right      Some basic information about the situation in      legislation.                                      goods and services violating other establi-
                                    to seek help from the government. Therefore        different countries can be found on our web        Cooperation with as many liberal political        shed negative rights guaranteed by every
                                    the governments have to prepare funds so           site in the regular national reports. We will      parties also helps a lot in the process of for-   constitution. If this concept is be accepted,
                                    that they can meet the demand for work by          restrict ourselves here to more general pro-       mulation of the new proposed legislation.         none will be able to draw the line until whe-
                                    unemployment benefits, demand for support          blems of rental housing.                           Unfortunately here the rivalry between            re the housing should be guaranteed, whether
                                    after retirement by pensions, demand for                                                              various parties often makes the idea of some      for all citizens of a town, a country or a con-
                                    medical care by health insurance, they have        The battlefield                                    joint strategy and joint proposal hard to         tinent or even for the whole earth and whet-
                                    a separate chapter in the state budget for                                                            achieve.                                          her the goal is to punish the provision of ren-
                                    financing public education, but they are only      As stated above, all the restrictions laid upon                                                      tal housing in order that no further rental
                                    reluctantly setting aside a separate chapter       landlords are based on enforceable legisla-        Legal background                                  housing be built. It is usually not contained
U.I.P.I. Rentals Committee Report




                                                                                                                                                                                                                                                 U.I.P.I. Rentals Committee Report
                                    for the support of those in unavoidable need       tion and legal regulation and therefore only                                                         in the constitutional legislation of the coun-
                                    for help to be able to pay the usual price for     the legislative bodies and governmental            Housing is not a real basic human right.          try. The positive rights such as the right to
                                    minimum decent housing services. Therefo-          bodies empowered to issue regulative               All rights have corresponding obligations. If     work or right to housing can only be under-
                                    re we would like to stress, that involvement       decrees can change the situation. The only         I have a right to property, everyone else has     stood as right applicable in a limited way
                                    in the introduction of well designed personal      institutions that can help are the courts and in   the obligation to refrain from stealing it or     against the state. In the case of „right to
                                    rent allowances is essential for achieving         particular constitutional courts because many      trespassing upon it. If you have an inviolable    work“ it has been already recognised that
                                    success in deregulating rents to an acceptable     of the most severe oppressive regulations are      right in your person, everyone else has an        subsidised state owned enterprises that
                                    level and in order to bring the usual return on    often in conflict with the basic constitutional    obligation to leave you unmolested. Note that     would provide employment for all who need
                                    invested capital and limit then the unneces-       rights and the list of basic human rights.         these are negative rights. They make it           a job is a utopia as well as assigning unem-
                                    sary legislation for the tenant’s protection.      Unfortunately courts are empowered only to         incumbent upon people to refrain, to cease        ployed people into existing enterprises and
                                    The situation in rental sector is in all coun-     enforce other legislation or to abrogate such      and desist, to avoid certain aggressive beha-     ordering these enterprises to pay to those
                                    tries given by the state of the related legisla-   legislation that is in contradiction with the      viour. But they impose no positive obliga-        people state regulated salaries.
                                    tion. This legislation is covering three main      constitutional rights, but they have not the       tions whatsoever. Rights such as these have       Instead all countries have developed systems
                                    aspects and is usually prepared by three dif-      right to make any corrections of the existing      been acknowledged since time immemorial.          of benefits for unemployed, which are offe-
                                    ferent ministries.                                 legislation.                                       They are the core of Magna Charta, the con-       red under various regularly means for tested
                                                                                       It is therefore mandatory to spend most ef-        stitutions and the principles of western civi-    conditions and for a limited time to those
                                    1. Landlord tenant law, which sets the limi-       fort on achieving understanding and support        lization. Recently some new „quasi rights“        who have lost their source of income and in
                                    tations of the contractual freedom for rent or     of the public opinion for any needed changes       have been proposed including the claim to         spite of trying hard are not able to get any
                                    lease agreements and gives the rules for           of such oppressive system, because the poli-       everything from work, decent food, medical        job. Unfortunately in case of a right to hou-
                                    enforcement of the rights that both parties        ticians will not support any change that           care, education, housing, happiness and other     sing the state is often trying to intervene in a
                                    have agreed upon and also of additional            would not gain sufficient public support. For      things. If this was only an emphasis of eve-      wrong way. States, municipalities or other
                                    rights that usually the tenants are granted by     this purpose it is necessary to have strong        ryone’s right to seek all these things provided   subsidized organizations are building with
                                    law.                                               arguments for the advantages of decent free        no one else’s rights were infringed in the pro-   the help of state subsidies housing, offering


 52                                                                                                                                                                                                                                                     53
                                    housing for deformed (below market) rents           tal. The lease cannot be freely terminated by       the demand. Besides the direct cash flow,          Rent Regulation Systems
                                    for those who find way to enter the privile-        the landlord except in very few limited cases       there is usually, but not always, certain capi-
                                    ged club of subsidized tenants while this acti-     and is sometimes allowed only under the             tal gain in case that the investment has been      There are two systems of rent regulation,
                                    vity serves on the rental housing market as an      condition that the landlord finds for the           made in good location. Based on this fact,         which are acceptable for both sides. They
                                    indecent competition to private investors. In       tenant an equivalent apartment for similarly        many countries have adopted methods for            offer reasonable return on invested capital
                                    order to improve the image of this way of           regulated rent, which is of course not availa-      assessment of the market value of real-estate      and sufficient means for proper maintenance
                                    wasting public funds, these activities are cal-     ble on the market. The tenants can inherit the      property from the rent it generates. In Ger-       and on the other hand can avoid excessive
                                    led „social housing“ and in limited cases the       right of paying regulated rent or pass it on        many the value is approximately 15 times the       rents that may trigger some problems.
                                    access to these subsidized apartments is offe-      other related or even unrelated cohabitants         yearly rent as well as it was in the Czech         The German system, where the new leases
                                    red to families with a certain maximum              etc. In this way all the „may be once social        Republic.                                          are allowed for freely agreed rents that may
                                    income at the time of entering the lease. Sin-      aspects“ are totally forgotten and only politi-     As a part of the mystification process many        be only up to 20% higher than the average
                                    ce most of these leases are for unlimited           cal populism prevails.                              new misleading concepts are introduced:            local rents for similar dwellings. This system
                                    term, even this slight social aspect is soon                                                                                                               is critically dependent on the reliability of the
                                    lost by the guaranteed security of tenure for       Financial analysis                                  1. Cost rent includes only the monthly pay-        average local rents, from which all subsidi-
                                    an unlimited number of next generations.                                                                ments that cover the running cost of the buil-     zed or socially distorted rents are excluded
                                    On the other hand the indecent competition          Rent regulation is usually starting either from     ding and in some cases also the appreciation       and the data are taken only from the last three
                                    of subsidized housing is increasing the risk of     normal market rents with no or very limited         of the building usually under the assumption       years.
                                    investment into non-subsidized housing con-         possible adjustment, reflecting the market          of 50 or 100 years lifetime of the building –      The Swiss system, based on the one that is
                                    struction and the overall result of state invest-   situation, or starting from some „expert ana-       The cost of simple reproduction.                   used in Switzerland. This concept is based on
                                    ment into subsidized housing construction           lysis“ of the needed rent for „allowable“                                                              zero profit for the investor working with
                                    leads to an overall decrease of rental housing      return for the landlord. Here is a never-           2. Fair rent is usually an unfair rent that has    100% mortgage financing. If you buy or
                                    construction and the only rental housing that       ending field for unbelievable variety of            been calculated usually with the aim to keep       build a house with 100% mortgage financing
                                    is newly built is practically only the state        absurd calculations by people who do not            it as low as possible containing usually only      you have to pay an interest to the bank
                                    subsidized one. This phenomenon is called           understand the problem at all.                      the cost rent or even not taking into account      depending on the actual interest rate from the
                                    the crowding out effect.                            It should be noted right at the beginning that      the appreciation of the building.                  invested capital. Moreover you have to gua-
                                    In spite of the fact that subsidized housing is     of course for the best functioning of rental                                                           rantee the proper maintenance of the house
                                    much more costly than the personal housing          housing market with the fastest adjustment of       3. Factually standardised rent is a rent that      and payment of all taxes and insurances.
                                    allowances it takes usually decades before          the offer to the need is the full freedom of        more or less reflects the real expenses in the     Such average running cost of a house has
                                    the situation becomes so eco-nomically              rent adjustment to the situation on the mar-        case of subsidized housing taking into             been calculated in many countries and gives
U.I.P.I. Rentals Committee Report




                                                                                                                                                                                                                                                   U.I.P.I. Rentals Committee Report
                                    unbearable that even against the wealthy ten-       ket. But on the other hand excessive rents          account nearly 40% subsidy for the con-            very similar results, being approx. 2-3% of
                                    ant’s lobby this concept is revised and nowa-       that may arise from this process may trigger        struction cost. Since this rent has to cover the   the actual reproduction cost of the house.
                                    days more and more countries start to use the       serious state regulatory intervention if some       expenses of the state or other public body, its    With mortgage interest rate of 5 % this gives
                                    much cheaper concept of rent allowances. In         unscrupulous landlords become publicly cri-         value is derived from the value of the rented      yearly rent equal to 7-8 % of the value of the
                                    the meantime of course the government finds         ticised for rent increases in socially sensitive    property being only some 4,5% per year             house.
                                    irresistible temptation to try to solve the pro-    cases. Reasonable rent regulation therefore         thanks to the subsidies. In the Czech Repu-        Practically the same value results from the
                                    blem at the expense of the landlords. Intro-        represents less perfect but usually more sta-       blic it is three times higher than the unsubsi-    German system. The only objection to this
                                    ducing of rent regulation, which usually            ble and still acceptable solution.                  dised but regulated rent.                          system is that the actual market value of the
                                    regulates only rent increases but with the          Let us now look on the usual return on capi-                                                           rented property should be taken into the cal-
                                    time and uncompensated inflation, leads to          tal invested in rental housing. Historical ana-     4. Social rent is a payment that usually does      culation instead of the once invested capital.
                                    ridiculous situation that some rents valid in       lysis dating back even to ancient Rome              not have anything in common with rent but          Our observation is that the actual market
                                    2001 might have been frozen in 1914 (like in        shows that the typical return on investment in      is set taking into account only the willingness    value of the rented property is in the case of
                                    Ireland or Austria). In other cases the rent is     this field used to be and is up to now somew-       of the tenant to pay something for housing.        a free market in correlation with the rent that
                                    adjusted by the government and kept at much         here between 6 and 10% of the market price                                                             may be charged. This solves all the problems
                                    lower than market level, not even following         of the rented property per year in case of          5. Usual local rent may have very different        with renovation or modernization rent incre-
                                    the increase of the cost of maintenance.            100% occupancy. This is the level that is           meanings. For example in Germany it is an          ases and dependence of rent on location and
                                    This rent regulation deprives the tenants of        typical in the free segments of the market and      average local rent charged in freely agreed        also solves the problem of similarity of apart-
                                    their mightiest weapon being the threat to          close to the case of reasonably regulated           new leases during the last three years. In the     ments in the German mutually comparative
                                    end the lease and move out. Therefore to            unsubsidised private sector.                        newly prepared Czech landlord tenant law it        system.
                                    achieve at least some effect the tenants have       This level of return is sufficient for allocation   means an average of all the regulated and          The Swiss system also helps to analyse the
                                    to be overprotected by law and the landlords        of reasonable amount of free capital in the         some unregulated rents. Since there are less       structure of the rent. The rent has to cover the
                                    have to neglect maintenance in order to             construction and renovation of rental hou-          than 5% of the unregulated rents, it means it      cost of simple reproduction of the rented pro-
                                    achieve at least some return on invested capi-      sing, providing enough new housing to meet          is practically equal to the regulated rent.        perty. This is the part that covers also all the


 54                                                                                                                                                                                                                                                       55
                                    necessary payments including taxes, insuran-       decent housing“, the decent way how to cope        repair and modernisation of the house except      values must not be exceeded by more than
                                    ce, management and of course maintenance.          with this problem is to provide everyone with      20 %, which may be kept by the landlord as        20 % even in the case of the new leases.
                                    This part of the rent is in fact returned to the   housing allowances enabling everyone to            his revenue.                                      Typical return on investment in rental hou-
                                    tenant in these obligatory payments for the        buy on the market housing services he needs.       In case of renovation and modernisation           sing: 7 %
                                    property he is using. The remaining part is in     There is hardly any government that would          regulated tenants have to participate on the
                                    fact the real rent. In case of wise investment     try to solve the problem of right to work by       cost of these works. Typical return on invest-    Greece
                                    it is equal to the interest, paid to the mortga-   running subsidised factories to provide jobs       ment in rental housing: probably not more         447 dwellings per 1.000 inhabitants
                                    ge bank from the whole market value of the         for unemployed. On the other hand in hou-          than 5%.                                          80 % owner occupied
                                    rented property. Once this mortgage is repla-      sing it is a common practise to provide very                                                         20% rented – all private sector
                                    ced by the own capital of the investor, this       costly brick and mortar subsidies instead of       Belgium                                           Since 1994 new leases without rent regula-
                                    represents the return of the invested capital.     supporting normal housing market with per-         380 dwellings per 1.000 inhabitants               tion (Since 2000 no regulated lease remained
                                    Providing thus the gross return on the inve-       sonal subsidies and fair prices for housing        cca 60 % owner occupied                           after gradual conversion of regulated leases
                                    sted capital of approx. 5%.                        services.                                          cca 40 % rental 25 % of which belong to sub-      to free ones).
                                    We would like to stress at this point that we      For the situation in rental housing it is there-   sidised public companies and should serve         Minimum duration of any house lease for
                                    are not supporting the reasonable rent regu-       fore essential whether in the case that the        the poor.                                         permanent residence is 3 years.
                                    lation as best financial solution, but under the   government has accepted the concept of the         In the 90ties the legislation changed. The        Rents in summer houses and furnished apart-
                                    present prevailing welfare state political         so called „right to housing“ it has also provi-    new rents can still be freely agreed and the      ments were always free without time limita-
                                    atmosphere we feel that a reasonable rent          ded funds for personal rent allowances or          changes concern essentially the length of the     tion on the duration of the contract or the
                                    regulation is an acceptable solution offering      not. If not, you must not be surprised that it     lease.                                            rent.
                                    a bit greater chance of stability and being        will always have tendency to transfer the bur-     The lease term is either short term for not       Typical return on investment in rental hou-
                                    necessary for persuading the governments to        den of its decision on the landlords.              more than 33 months with unlimited                sing: 6 %
                                    provide necessary social rent allowances for       The standard methods how to do this are:           3 months notice time or obligatory 3 times        Commercial leases: Any initial agreed rent is
                                    those in social need so that the social situa-     rent control and legal overprotection of           3 years with approved rent adjustment after       valid. If there is not any agreement for futu-
                                    tion of few cannot be misused for the intro-       tenants. Both these interventions are vio-         each 3 year period and indexation of the rent     re increases, the rent may be set to 6% of the
                                    duction of really severe rent regulation later.    lating the natural human right of contrac-         in the meantime according to the increase of      tax value of the rented property per year and
                                                                                       tual freedom and property rights. The              the consumer price index.                         then increased by 75% of the consumer pri-
                                    Conclusions                                        degree to which the government decides to          If no notice is given at the end of the ninth     ce index each year. Any new lease has a legal
                                                                                       violate these natural human rights gives an        year, the lease can be prolonged for another      duration of 12 years and it can be terminated
                                    Rental housing is one of the most extensive-       idea on how far the government is on its way       three years and the notice time is 6 months.      after 12 years with compensation of
U.I.P.I. Rentals Committee Report




                                                                                                                                                                                                                                              U.I.P.I. Rentals Committee Report
                                    ly deformed areas of private activities. The       to communism. Since positive right to com-         Earlier notice is connected with substantial      24 months rent paid to the tenant, or after
                                    state interventions are based on the concept       mercial premises is not that popular, this ren-    compensation to the tenant for personal use       16 years without any compensation. In case
                                    of the so called „right to decent housing“,        ting is usually basically free. Only the           by the owner. There is possibility of trans-      of serious breach of the contract the eviction
                                    that some governments admit as part of             request for long term leases is protected in       ferring the lease to other tenant and sublet-     is fast.
                                    „human rights“. This miss-concept is based         some countries.                                    ting under certain circumstances.
                                    on new, so called positive rights like right to    A final conclusion is that only freedom of         Typical return on investment in rental hou-       Denmark
                                    medical services, right to healthy nutrition,      the market can guarantee the long term             sing is up to 4 % (it may be higher for low       476 dwellings per 1.000 inhabitants
                                    right to work, right to education for all etc.     interests of both property owners and              quality housing).                                 51 % owner occupied
                                    Which are not rights at all but requests for       tenants.                                           In case of serious breach of the contract the-    45 % rented (19 % cooperative, 24,6 % priva-
                                    subsidies. If any government decides to                                                               re is no fast and efficient way of evicting the   te, 1,4 % state owned)
                                    recognise such a „right“ it has to provide         The actual situation in the European               tenant. The situation is even becoming wor-       4 % unknown.
                                    funds to finance all the obligations it creates.   countries today (based mainly on the               se by the introduction of conciliation proce-     Rents are regulated and must not exceed the
                                    If the government recognises e.g. the right to     U.I.P.I. national reports)                         dures.                                            back-flow of the purchase value and the ope-
                                    work (or more precisely right to financial                                                            Commercial rentals are free but the term is       rational cost of the rented property (probably
                                    subsidies) it has to provide necessary funds       Austria                                            9 years renewable three times and in the case     similar to the Swiss system).
                                    to cover the cost of such obligation. In the       Rent is regulated in approx. 10 % of dwel-         of earlier eviction for personal use only, the-   Termination of the lease is possible only in
                                    case of housing many governments tend to           lings all built before 1945 if they are smaller    re is high financial compensation to the          case of breach of the lease contract. The evic-
                                    transfer the cost of obligations the govern-       than 130 square meters. Newly also dwel-           tenant.                                           tion process takes usually 3-12 months.
                                    ment accepted on the landlords and try to          lings in houses containing not more than two                                                         The notice time for the tenant is 3 months.
                                    justify this violation of the natural rights       dwellings are exempt from regulation.              Germany                                           Vacant apartments have to be immediately
                                    (negative rights) upon which the free demo-        There are numerous exceptions set by the           Rents are regulated by the market using the       rented out.
                                    cratic society of the western type is based.       regulation.                                        so called rent mirror, which is constructed       Typical return on investment in rental hou-
                                    Once the government accepts the „right to          Income from rents has to be invested into          from the freely agreed new leases. These          sing: 7 %


 56                                                                                                                                                                                                                                                  57
                                                              Commercial leases – rents should not exceed       Ireland                                          regulated to a rent level far below the market.     Switzerland
                                                              the usual local market rents and leases are       350 dwellings per 1.000 inhabitants              This regulation will be removed by the year         489 dwellings per 1.000 inhabitants
                                                              also for unlimited time and can be terminated     Very high rate of private house construction     2010. In the case of vacancies, there is no         31,3 % owner occupied
                                                              only when the tenant breaches the contract.       4% increase per year (2.000)                     regulations on new rents. Leases may not be         68,7 % rented (3,4% cooperative, 62,6 % pri-
                                                                                                                81% owner occupied                               shorter than 3 years except for cases where         vate, 2,7 % state owned)
                                                              Italy                                             19 % rented (11 % private,7 % publicly           the rented dwelling is a part of the letting per-   All (old and new) residential as well as com-
                                                              Dwelling house rentals.                           owned, 1% cooperative)                           sons private house. The renter may leave a          mercial rents are regulated in the same way.
                                                              The italian legislation provides for two types    Since 1982 new leases without rent regula-       lease after a shorter period than 3 years. The      Only apartments with more than 6 rooms are
                                                              of tenancy contracts: free contracts and con-     tion (today less than 4.000 dwellings still      owner can have a dwelling vacated after the         free. Rents are regulated and must not exceed
                                                              trollled contracts. A free contract has a 4       under rent regulation with no transfer rights    end of the contract unless the contract gives       the back-flow of the purchase value and the
                                                              years duration and is renewable for a further     to rent regulation)                              him a right to prolong it.                          operational cost of the rented property. The
                                                              4 years. The rent is defined by free bargai-      50% of leases for max. 1 year. Notice time       Rents are fixed by negotiations between             back-flow is given by the actual mortgage
Union Internationale de la Propriété Immobilière – U.I.P.I.




                                                                                                                                                                                                                                                                       Union Internationale de la Propriété Immobilière – U.I.P.I.
                                                              ning of the parts. A controlled contract has a    28 days. Execution slow, typically 6-9           owner and renter. In theory market rent is the      interest rate and the operational cost is bet-
                                                              3 year duration and is renewable for a further    months, in case of serious breach of the con-    result. As an average a normal market rent          ween 2 and 3 % of the purchase value of the
                                                              2 years period. The rent is determined by         tract it is much faster.                         would be 5 – 7% of the dwellings market             rented property.
                                                              local agreements mostly defined by landlord       Rents in the private sector are free.            value.                                              Typical return on investment in rental hou-
                                                              and tenant associations.                          Typical return on investment in rental hou-      The main reason for evicting tenants is lack        sing: 8 %
                                                              With these types of contracts both landlords      sing: 7,5%                                       of payment. The eviction process is taken           In the case of severe violation of the contract
                                                              and tenants have some certain fiscal advan-       Commercial leases are free, usually for 4        care of by a public body called „Namsman-           the tenant can be evicted. The procedure lasts
                                                              tages.                                            years and 9 months, since in case of uninter-    nen“. There are formal rules as to how a ten-       at least three months. The notice time for
                                                                                                                rupted lease for 5 years the tenant has the      nant is first warned, then asked to move, and       commercial leases is 6 month compared to
                                                              Eviction.                                         right for extension of the lease for 21 years.   at the end evicted by „namsmannen“.                 residential leases where it is 3 months. Maxi-
                                                              The procedures of eviction regarding rented       The rent can be adjusted once in 3-5 years. In                                                       mum extension period of the contract is
                                                              housing are very long and expensive for the       case of serious breach of the contract the       Finland                                             6 years while for residential contracts it is
                                                              owner. There are 3 main legal ways to evict       eviction is fast.                                475 dwellings per 1.000 inhabitants                 4 years.
                                                              a tenant:                                                                                          70,7 % owner occupied
                                                              a. necessity of the owner to use the premises     The Netherlands                                  26,40% rented                                       Cyprus
                                                              before the end of the                             400 dwellings per 1.000 inhabitants              2,9 % unknown.                                      68,2 % owner occupied
                                                              contract duration (the reasons of necessity       53% owner occupied                               Rents are free for all freely financed rental       13,9% rented
                                                              are specifically described                        47 % rented (35,2 housing associations           dwellings and can be indexed.                       17,9 % government subsidized refugee hou-
                                                              by the law)                                       11,8% private)                                   State subsidised rental dwellings have other        ses, built by the state
                                                              b. end of the contract duration;                  Termination of tenancy is complicated and        regime of rents                                     Land register is not properly functioning
                                                              c. Non payment of the rent by the tenant.         possible only in case of serious breach of the   Lease term is usually either for 1 year or for      Rents are free in all houses built after 1999
                                                                                                                contract.                                        unfixed term                                        All other rents are regulated including the
                                                              Commercial rentals.                               Rents in the private sector are free             The landlord can have the dwelling vacated          commercial leases. Leases are for unlimited
                                                              There are also two types of tenancy con-          Rents in the subsidised sector of housing        after the end of the contract. In case of noti-     time and evicting a tenant is very difficult
                                                              tracts:                                           associations are regulated creating a bit        ce to the tenant the reason for termination the     and time consuming. High compensation has
                                                              a. Contract for industrial, commercial, crafts-   unfair competition.                              lease must be acceptable.                           to be paid to the tenant when the eviction is
                                                              man activities, or for                            Typical return on investment in rental hou-      The notice time is three months for the land-       successful.
                                                              accustomed professional and independet            sing: 7%                                         lord if the lease was for less than 1 year and      Rents can be increased once in two years by
                                                              activities: in this case the                      Commercial leases are free, usually for          six months when it was for one year at least.       approx. 14% ( set by the government).
                                                              contract has a 6 year duration and is renewa-     5 years with simple possibility to terminate     The notice time for the tenant is one month.        Commercial rentals market is partly free
                                                              ble for a further 6 years;                        the lease after the lease expires.               Typical return on investment in rental hou-         (rentals drawn after 1999) and controlled (all
                                                              b. hotel activities, in this case the contract                                                     sing: 8 %                                           the old rentals).
                                                              has 9 years duration and                          Norway                                           Commercial rentals – rents are free and inde-
                                                              is renewable for further 9 years.                 412 dwellings per 1.000 inhabitants              xable. If the rent is unreasonable it may be        Sweden
                                                              In these two types of contracts the rent is       78% owner occupied(including cooperative         corrected by the court.                             480 dwellings per 1.000 inhabitants
                                                              determined by agreements                          ownership)                                       The usual term is 5-10 years and after the end      57 % owner occupied , 43% rented
                                                              mostly defined by landlord and tenant, and        22% rented (mainly private)                      of the lease the premises can be vacated. The       Rents are regulated by the municipalities so
                                                              the increase of the rent is                       The rent market is free with some minor          notice time can be agreed in the contract. If       that the return on investment is widely diffe-
                                                              linked to 75% of the ISTAT (consumer pri-         exeptions. Dwellings in the old pre-war hou-     not it is 3 months for the lessor and 1 month       rent depending on the location. The lowest
                                                              ce index).                                        sing (with 4 or more units) in central Oslo is   for the tenant.                                     return is usually in the large towns and hig-


  58                                                                                                                                                                                                                                                                                59
                                                              her in less attractive locations. Many dwel-      Great Britain                                                                                       workplaces for several years, relating to both
                                                              lings are owned by the housing associations       Rent is no more regulated for new leases and                                                        the breathing risk factors of indoor environ-
                                                              and offered for similar rents.                    the introduction of the new type of leases                                                          ments and the recently discovered risks that
                                                              Typical return on investment in rental hou-       „assured shorthold tenancies“ have improved                                                         are not easy to perceive, coming from the
                                                              sing: averaged 6%.                                the situation so that the private rental sector                                                     presence of asbestos, rock wool, electromag-
                                                                                                                has recovered from its share of less than 7 %                                                       netic waves, radon, fumes from paints and
                                                              Slovenia                                          to the present exceeding 10%.                                                                       glues, dusts, noise, air charged with positive
                                                              351 dwellings per 1.000 inhabitants               In case of renovations landlords have can                                                           electricity, etc.
                                                              88% owner occupied, 12% rented (0,5% sta-         obtain grants covering up to 50-70 % of the                                                         Moreover the risks connected with the use of
                                                              te owned, 3,2% local communities, 0,36%           cost of renovation.                                                                                 gas and electricity (elements which have
                                                              nonprofit, 7,88% ptrivate                         There is a massive system of housing allo-                                                          become indispensable for the functions of a
                                                              80% are old rent regulated rentals with pro-      wance system very poorly designed and                                                               household) without taking into account tho-
Union Internationale de la Propriété Immobilière – U.I.P.I.




                                                              tected tenancy, the rents are approx. 1,1% of     Housing Association housing, providing sub-                                                         se connected with its specific day-to-day run-
                                                              the market value per year and there is the        market housing with heavy governmental                                                              ning, such as the poisons emitted by deter-
                                                              right of transfer of the same conditions to       subsidies.                                                                                          gents, the formaldehyde that is still present in
                                                              relatives who lived with the tenant and obli-     Typical return on investment in rental hou-                                                         dozens of products, the combustion gases
                                                              gation to provide equal housing for equal pri-    sing: 7%                                          Technical report by the president of U.I.P.I.     from stoves, dusts, and the diseases convey-
                                                              ce in the case of certain notices allowed by                                                        Technical Committee Michele Vigne                 ed by air conditioning systems.
                                                              the law.                                                                                                                                              For several years the problem of the presen-
                                                              New rents are free and provide probably also                                                        Installation Safety and Environmental             ce of technological systems in buildings has
                                                              some 6-7% yield per year of the value of the                                                        Protection in Existing Buildings                  become larger and larger. Such a system,
                                                              rented property?                                                                                                                                      though useful and considerably necessary
                                                              The process of evicting a tenant is very long                                                       The Problems                                      remains still improper and almost botherso-
                                                              some three years for the court and another                                                          The century that just has ended was charact-      me and burdensome when actions are requi-
                                                              year for the court eviction.                                                                        erized by considerable and important gains in     red to make it conform to regulations and
                                                              Commercial rentals are free with no limita-                                                                                                           standards.An initial and significant factor to




                                                                                                                                                                                                                                                                       Report of U.I.P.I. Technical Committee
                                                                                                                                                                  the technical and scientific field that made it
                                                              tions on the term of lease.                                                                         possible to raise the population’s standard of    start with is the fact that homes have totally
                                                              Old rentals where the tenant has invested in                                                        living. The bygone century has also stressed,     lost the romantic connotation of a haven, a
                                                              the premises, he can continue in the lease                                                          along with the benefits obtained, the need for    safe place: homes have lost also in actuality
                                                              under the same conditions until the invest-                                                         better quality of living.                         by the sensitivity of users.
                                                              ment has been paid back.                                                                            The main needs have been accomplished in          In primitive societies humans lived in a
                                                              No fast and effective way of evicting a non-                                                        relation to the conveniences offered by tech-     perennial antagonism with nature that inclu-
                                                              paying tenant is available.                                                                         nology. At the same time research has deve-       ded a source of life, but also a hostile ele-
                                                                                                                                                                  loped revealing the need to limit the pollution   ment, so the home or rather the shelter, was
                                                                                                                                                                  of the planet.                                    the cave where humans retired, abandoned
                                                              Information from the book by Prof. Donner:                                                          Today environmental values come more and          the threshold of attention because they were
                                                              Housing policies in the European Union,                                                             more from social attentions, and it is indi-      protected from the aggression of the external
                                                              2002, by Professor Christian Donner,                                                                spensable that these attentions should be         environment in which they spent and expe-
                                                              (www.donner.at/christian), a book with very                                                         regulated by standards guaranteeing their         rienced their life.
                                                              useful information on the subject of rentals.                                                       quality and observance in a serious and pro-      Today the living system is almost entirely
                                                                                                                                                                  fessional manner.                                 opposite: many of our activities and expe-
                                                              France                                                                                              The problems connected with the protection        riences take place within built structures, and
                                                              New and renovated dwellings may be rented                                                           of the external environment (pollution of the     within these there is the maximum concen-
                                                              for free rent representing the locally typical                                                      atmosphere, air, water, and soil) have for        tration of services, material equipment, and
                                                              value and can be indexed with the cost of                                                           some time the subject of analyses, studies,       relations between persons and things.
                                                              constructional work.                                                                                and actions that have made it possible to         Workplaces, but even more so living places,
                                                              Rents are still regulated in old part of Paris.                                                     obtain acceptable conditions of compatible        have become the places of the maximum
                                                              In case of renovation in these houses the                                                           and sustainable development to a large extent     concentration of dangers.
                                                              landlord may obtain governmental subsidies                                                          in Western Europe.                                A series of umbilical cords connects us with
                                                              up to 25% of the cost of renovation.                                                                Therefore having obtained a significant           the outside world and brings all the dangers
                                                              Typical return on investment in rental hou-                                                         benefit in the external environment, attention    into our homes: networks of electricity, gas,
                                                              sing: 4-5% in the subsidised rental sector.                                                         has been turned to the interiors of homes and     water, sewers, remote heating, telephone,


  60                                                                                                                                                                                                                                                                           61
                                         remote control, television, radio, informatics,    cially those buildings equipped with artifici-    Another problem that is emerging and which         create among real estate investors. While for
                                         etc. today give us comfort at home, but have       al ventilation and/or air conditioning.           will have to deal with in the coming years, is     newly built buildings and those involved in
                                         „moderated“ the safety of home as they are         A subject of specific studies in the past twen-   the presence of radon in buildings. This is a      total restructuring work it is correct to
                                         autonomous and isolated.                           ty years has been the so-called Sick Building     colourless and tasteless gas that is present in    demand the observance of minimum energy
                                         Our level of personal dependency is increa-        Syndrome, referring to the spread of health       rocks, water tables and the ground and that is     savings characteristics, in fact for existing
                                         sing from at least two standpoints: the first is   problems among the occupants of a building        transmitted into buildings from the ground         buildings this is absolutely unfeasible.
                                         that of the increasingly greater importance of     with irritative (eyes, respiratory tract, skin)   and through certain building materials.            The reason is twofold. The first reason is that
                                         the remote services that we use to make up         and general (headaches, concentration pro-        Radon, as well known, enters dwellings             the operation in order to attain the objective
                                         for the lack of the social and family connec-      blems, irritability) symptoms. The recogni-       through certain structures and building mate-      of economic convenience should often entail
                                         tive that was the most efficient system of         zed caused of this syndrome can be found in       rials of volcanic origin including, among          considerable work on the building and on the
                                         control: today we turn to remote aid, remote       insufficient ventilation, poor functioning of     others, tuff and granite, but it may also come     systems, with all the resulting costs and logi-
                                         control, telematics, and telemanagement. The       the air conditioning system, the presence of      from concrete, tamped earth or filling soil or     stic problems, especially if it is occupied.
                                         second point, not to be overlooked, is that the    considerable quantities of sources of pollu-      the water from wells.                              The second reason is that the owner and the
                                         technological devices and their safety             tion inside the building (adhesives, paints       It has been demonstrated that radon is found       tenant have different interests on the residen-
                                         systems are so advanced and sophisticated by       and varnishes, sealers, primers, carpeting,       in basements, in the so-called „hobby rooms“       tial and office building lease market (the
                                         now that they are totally beyond any capaci-       wall facings, furniture, photocopy machines,      downstairs in large houses, but also in ces-       tenant pays the energy bills and the owner
                                         ty for intervention by their users.                insecticides, detergents, etc.), and the pre-     spools and foundations. In the lower or base-      has little incentive to invest because he has
                                         All these elements make it easy to understand      sence of biological contaminants (moulds,         ment zones of a house, the concentrations of       no economic return, as he cannot reasonably
                                         the growing attention of the EU legislator in      bacteria, pollens, viruses) which can act, also   radon may be two to three times higher than        raise the rent in a manner proportional to the
                                         issuing specific directives to ensure, in the      in combination, to create an unhealthy and        the in rest of the house.                          costs incurred and the energy savings obtai-
                                         construction and running of buildings and          hazardous environment.                            However some remedies are by now of com-           ned).
                                         systems, conditions of well-being, safety, and     There are no generalized magical solutions        mon use and the process of airing the house        Another point of the Directive, on which the
                                         environmental protection.                          for these problems, therefore it is necessary     is of fundamental importance.                      EU legislator seems to have wanted to force
                                         In the EU countries, these directives are          to be aware of and deal with the matter case      A recent study announced by the Scientific         things, is the issue concerning the setting up
                                         generally adopted within the set deadlines,        by case with an appropriate analysis made by      Committee of the United Nations concerning         of compulsory energy certification even for
                                         but with the national laws of adoption, other      professional, skilful technicians.                the effects of atomic radiation demonstrates       all existing buildings and the carrying out of
Report of U.I.P.I. Technical Committee




                                                                                                                                                                                                                                                   Report of U.I.P.I. Technical Committee
                                         obligations and fulfilments are often inap-        However several points must be kept in            that older buildings (over 75 years old) show      inspections on boilers and heating systems.
                                         propriately introduced invoking as a pretext       mind. First and foremost is the fact that the     lower radon concentrations than new houses         In our opinion, envisaged energy certifica-
                                         safety or environmental protection and entai-      problem mainly concerns the buildings built       or houses that have undergone restructuring        tion should be compulsory only for new buil-
                                         ling further unjustified costs at the expense of   in the past 30 years with the massive use of      work, because old houses have greater venti-       dings or those that have been totally restruc-
                                         the property owners.                               new artificial and assembled materials, as        lation.                                            tured, because it can be obtained from the
                                         In recent years we have seen an increase in        well as with new installation solutions and       However, the problem of heating still              design calculations, with a modest cost incre-
                                         articles not only in special magazines, but        construction techniques created to obtain         remains: increasing the ventilation of a           ase, while for existing buildings such certifi-
                                         also in newspapers dealing with the subject        „sealed“ living spaces, often also in order to    ground floor by eight times, while maintai-        cation would entail a survey of the building
                                         of the risks connected with the presence of        obtain a superficial and economic energy          ning the same temperature level, may triple        and its systems with easily imaginable high
                                         radon in environments, led in water pipes,         saving solution.                                  heating costs.                                     resulting costs.
                                         and asbestos in homes, and expressing a            In these buildings it is also possible to find    As far as the energy savings problem is con-       In addition, inspections are expensive, irrita-
                                         resulting urgent necessity for remediation.        the presence of asbestos, especially in the       cerned as well the prospects for the real esta-    te the users and generally do not specify the
                                         Here we will deal with several of these par-       older buildings, generally used in plastic        te sector are anything but rosy, especially        solution for any problems that may be found.
                                         ticular questions, which are being studied by      flooring materials, external panelling, insula-   with regard to the existing property.              It would have been better to have the public
                                         the U.I.P.I. Technical Committee and concern       tion and roofing, as well as the presence of      The recent EU Directive of December 2002           bodies, as we had suggested, identify the
                                         the risks of indoor pollution and technologi-      formaldehyde used in the production of syn-       incorporated only in part the proposals made       buildings that show excessively high specific
                                         cal systems. In some situations the air inside     thetic resins, glues, wallpapers, glass or        by the U.I.P.I., which asked that it should        consumption advising or ordering the owners
                                         homes is more polluted and dangerous than          mineral wool insulation felts, chipped wood       be limited to new buildings or to those invol-     to have an energy diagnosis made, aiming to
                                         outside. Smoke, products of combustion             panels, upholstery, foam insulation, dyes, etc.   ved in major restructuring work. It is true that   identify the causes of the high consumption,
                                         coming from stoves and heaters, pesticides,        For the presence of asbestos, the individual      the main objective underlying the Directive        and to verify the possible convenience of
                                         volatile organic compounds, formaldehyde,          countries have envisaged the obligation of its    of the European Parliament is to promote the       applying energy saving measures that would
                                         mites, radon, asbestos fibres, etc. are among      elimination, protection or encapsulation,         improvement of the energy performance of           bring the buildings back within tolerable
                                         the chief household pollutants.                    while for the presence of formaldehyde regu-      buildings, but what the EU legislator seems        limits.
                                         Moreover are also the construction and             lations are being adopted to define the maxi-     to have neglected is the actual dimension of       Moreover the specific consumptions suitable
                                         system characteristics of the buildings them-      mum acceptable content in the various buil-       the violent impact that the adoption of such       for identifying energy-wasting buildings are
                                         selves make their occupants feel sick, espe-       ding and furnishing products.                     a measure, on the existing properties that will    easy to determine by knowing the annual fuel


 62                                                                                                                                                                                                                                                        63
                                         consumption (that purchased) and the hea-           cation would entail, and for which it is             assess and submit data to the Chair of the         single States in front of four important tech-
                                         ting volume of the building.                        important to recognize and assert the princi-        U.I.P.I. that can be used within the EEC to        nical questions: energy saving, lifts, noise
                                         The above problems are joined by those con-         ple that the resulting charges must be borne         amend, within the permitted limit, any duty        and gas radon.
                                         nected with keeping the technological               by the entire community and not just by the          levied on the property.                          • Summary B represents the condition of
                                         systems (water, plumbing, heating, electrici-       single owners.                                     This has enabled us to express the view of           application of the EEC recommendations
                                         ty, telephone, gas, lifting and transport, fire-                                                       real estate owners, especially on several            on the existing lifts and the different beha-
                                         fighting, etc.) efficient and the continuous        The Agenda of the Technical Commitee               points we                                            viour of the single States.
                                         requests for the issuing of regulations that        of U.I.P.I.                                        consider fundamental in subject of matters
                                         impose new measures, sometimes useful, but          Modern building technology is not simply           energy saving and lifts in the existing buil-                                         June 2003
                                         certainly not indispensable, formulated by          confined to traditional applications like ener-    dings.
                                         the powerful system manufacturer lobbies,           gy supply and the heating system. It involves                                                                        Michele Vigne, President
                                         on the basis of alleged risks for safety or the     a high number of new applications. Their           The Working Areas                                              U.I.P.I. Technical Committee
                                         environment.                                        advantages go hand in hand with a wide ran-        The Committee has started dealing with the
                                         This is the case, for example, of the existing      ge of known and hidden hazards for the envi-       following specific areas: housing, commerci-
                                         lifts (around three million in Europe), for         ronment indoor and/or for people’s health.         al and industrial buildings and hotels in the
                                         which there is a strong pressure at the EU            With a view to reducing such hazards, the        following sector:
                                         level by lift construction and maintenance            European Community has already issued            • Power supply: Electrical systems, detection
                                         firms insisting that the recommendations              some regulations and others are being deve-        systems, warning systems, telephones, tele-
                                         become compulsory, thus forcing property              loped. Member states will have to recipro-         visions, etc.
                                         owners to carry out upgrading work that               cate with specific local legislation.            • Mechanical sector: Heating system, air con-
                                         would entail heavy and unjustified costs.             At this level and particularly concerning the      ditioning, gas, lifting and transport, etc.
                                         In this report we have dealt with only a few of       implementation of regulations relating to        • Specific hazards: Fire, radon, electromag-
                                         the aspects concerning the safety of installa-        existing buildings, which make up most of          netic fields, water, air and sound pollution,
                                         tions and environmental protection in existing        our properties, a severe lack of cohesion has      etc.
                                         buildings, but the above-said considerations          been detected.
                                         are more than sufficient to show how neces-         From the point of view of the buildings pro-       The Members of the Board and Commu-
Report of U.I.P.I. Technical Committee




                                                                                                                                                                                                                                                      Report of U.I.P.I. Technical Committee
                                         sary it is to establish a prudent attitude in the   perty ownership, this involves outstanding as      nication Procedures
                                         adoption of resulting legislative measures.         well as unexpected costs for often useful,         The Committee is made up of experts in the
                                         We have a positive opinion of the parliamen-        though not always essential, works.                aforementioned regulations working in the
                                         tary initiatives taking place in come coun-           Consider issues such as energy saving, buil-     field of electrical and electronic engineering,
                                         tries, where the proposal that the cost of such       ding health, lift systems and transport          mechanical engineering and civil enginee-
                                         heavy operations must be borne by the com-            installations: these sectors are currently       ring. It will also be able to deal with the most
                                         munity, also in consideration of the social           regulated, especially as far as existing buil-   burdensome aspects related to the property.
                                         function that real estate property has with           dings are concerned, by laws which differ        The members of the Committee have alrea-
                                         regard to society.                                    from one country to the other. Therefore a       dy been part of other national Boards of
                                         One thing is certain: in the real estate pro-         prompt intervention by us might mitigate         experts within participating countries.
                                         perty sector, it is necessary to go back and          consequent implications.                         During the meetings of the U.I.P.I. Technical
                                         think globally avoiding proposing sectoral            A board of experts set up within the U.I.P.I.    Committee they shall present a summary of
                                         solutions to problems and imposing measu-             in the autumn 2001, has perused the main         the work they have previously carried out
                                         res that are not accepted and poorly harmo-           regulations governing these issues and tho-      and of the problems tackled.
                                         nized with useless heavy costs for home               se currently in force in each state as well as   All the documents are forwarded electroni-
                                         owners, with the result of creating doubt over        the regulations issued to implement EEC          cally to the Coordinator so as to facilitate the
                                         the validity of the regulations and, because          directives. They will highlight all the issues   preparation of comparative studies, required
                                         they are not understood, seeing the non-              that in the future may turn out to be parti-     by the Committee.
                                         application even of those that should be              cularly burdensome for the property and
                                         observed, in the interest of the community.           will report about these to the relevant natio-   Comparative Tables of First Studies:
                                         For that reason we consider significant and           nal organizations pointing out the possible      Summaries A & B
                                         important the intervention of the U.I.P.I. at         amendments already implemented by other          The Committee is now presenting the first
                                         the EU level so that the proposals of Directi-        states and those which would be advisable        two results of it’s work:
                                         ves concerning safety and environmental               to implement.                                    • Summary A represents a synthesis of the
                                         protection in existing buildings will be objec-       As far as the EU draft regulations on the          elaborations of the first data and permitting
                                         tively with regard to the costs that their appli-     abovementioned subjects, the Committee             already an overview of the performance of


 64                                                                                                                                                                                                                                                           65
     Comparison Table of Technical Legislation in the various European States
66
                                                                                                                                                                                                                                                                                                                                                                      Improved membership services mean more




                                                                         GR

                                                                                   No

                                                                                                               No

                                                                                                                                       No
                                                                                                                                                                 No
                                                                                                                                                                                      Yes
                                                                                                                                                                                      Yes




                                                                                                                                                                                                                                                             No
                                                                                                                                                                                                          No
                                                                                                                                                                                                                             No
                                                                                                                                                                                                                                           No



                                                                                                                                                                                                                                                                                        120.000 400.000
                                                                                                                                                                                                                                                                                                                                                                      content members means growth. In 2002 the
                                                                                                                                                                                                                                                                                                                                                                      Membership Services Committee of U.I.P.I.



                                                                         CZ

                                                                                   Yes

                                                                                                               Yes

                                                                                                                                       Yes
                                                                                                                                                                 Yes
                                                                                                                                                                                      Yes
                                                                                                                                                                                      No



                                                                                                                                                                                                                                           No
                                                                                                                                                                                                                                                             Yes
                                                                                                                                                                                                          No
                                                                                                                                                                                                                             No
                                                                                                                                                                                                                                                                                                                                                                      has carried out a survey of the most sought-
                                                                                                                                                                                                                                                                                                                                                                      after membership services with the different



                                                                                                  Yes/Genev.


                                                                                                                          Yes/Zurich
                                                                                                                                                                                                                                                                                                                                                                      affiliates in the different countries. The
                                                                         CH

                                                                                   No

                                                                                                               No

                                                                                                                                       No
                                                                                                                                                                 No
                                                                                                                                                                                      No
                                                                                                                                                                                      No



                                                                                                                                                                                                                                           No
                                                                                                                                                                                                                                                             No
                                                                                                                                                                                                          No
                                                                                                                                                                                                                             Yes




                                                                                                                                                                                                                                                                                        140.000
                                                                                                                                                                                                                                                                                                                                                                      results of the survey are enclosed as an




                                                                                                                                       Yes/No
                                                                                                                                                                                                                                                                                                                                                                      appendix to the report.
                                                                         UK

                                                                                   Yes

                                                                                                               Yes



                                                                                                                                                                 Yes
                                                                                                                                                                                      No
                                                                                                                                                                                      No




                                                                                                                                                                                                                                                             No
                                                                                                                                                                                                          No
                                                                                                                                                                                                                             Yes
                                                                                                                                                                                                                                           No



                                                                                                                                                                                                                                                                                        150.000
Existing lifts Recommendation – Directive 95/16/CE – Current Situation


                                                                         S

                                                                                   No

                                                                                                               Yes

                                                                                                                                       No


                                                                                                                                                                                      Yes
                                                                                                                                                                                      Yes
                                                                                                                                                                                                          No
                                                                                                                                                                                                                             Yes
                                                                                                                                                                                                                                           No
                                                                                                                                                                                                                                                             No

                                                                                                                                                                                                                                                                                        100.000
                                                                                                                                                                                                                                                                                                                                                                      Legal advice
                                                                                                                                                                                                                                                                                                                                                                      According to the survey, the most popular
                                                                                                                                                                                                                                                                                                                                                                      membership service by far, is legal advice.
                                                                                                               Yes

                                                                                                                                       No




                                                                                                                                                                                                                                                             No
                                                                         P

                                                                                   No




                                                                                                                                                                 No
                                                                                                                                                                                      No
                                                                                                                                                                                      No
                                                                                                                                                                                                          No
                                                                                                                                                                                                                             No
                                                                                                                                                                                                                                           No



                                                                                                                                                                                                                                                                                        160.000
                                                                                                                                                                                                                                                                                                                                                                      This is, however, an area where national dif-
                                                                                                                                                                                                                                                                                                                                                                      ferences prohibit a direct exchange of servi-




                                                                                                                                                                                                                                                             No
                                                                         NL

                                                                                   No

                                                                                                               Yes

                                                                                                                                       Yes
                                                                                                                                                                 Yes
                                                                                                                                                                                      No
                                                                                                                                                                                      No
                                                                                                                                                                                                          No
                                                                                                                                                                                                                             Yes
                                                                                                                                                                                                                                           No



                                                                                                                                                                                                                                                                                        60.000
                                                                                                                                                                                                                                                                                                                                                                      ces. On the other hand it could be of
                                                                                                                                                                                                                                                                                                                  Report by Mr. Olav Vilnes, Vice President           great help to members moving between the
                                                                         I

                                                                                   Yes

                                                                                                               Yes




                                                                                                                                                                                                                                                             No
                                                                                                                                       No
                                                                                                                                                                 No
                                                                                                                                                                                      Yes
                                                                                                                                                                                      No
                                                                                                                                                                                                          No
                                                                                                                                                                                                                             Yes
                                                                                                                                                                                                                                           No



                                                                                                                                                                                                                                                                                        750.000
                                                                                                                                                                                                                                                                                                                  of U.I.P.I., and President of its Members’          different countries if one were able to create
                                                                                                                                                                                                                                                                                                                  Services Committee.                                 a network of contacts that could assist visi-
                                                                                                                                                                                                                                                             Yes/No Yes/No
                                                                         F

                                                                                   Yes

                                                                                                               Yes

                                                                                                                                       No
                                                                                                                                                                 No
                                                                                                                                                                                      No
                                                                                                                                                                                      No
                                                                                                                                                                                                          No
                                                                                                                                                                                                                             No
                                                                                                                                                                                                                                           No



                                                                                                                                                                                                                                                                                        420.000
                                                                                                                                                                                                                                                                                                                                                                      ting members from other countries who
                                                                                                                                                                                                                                                                                                                  The Membership Services Committee was               encounter problems of a legal kind, or whe-
                                                                                                                                                                                                                                                                                                                  established in order to offer members of            re for instance, purchase or sale of real esta-
                                                                         FIN

                                                                                   No

                                                                                                               Yes

                                                                                                                                       No
                                                                                                                                                                 No
                                                                                                                                                                                      Yes
                                                                                                                                                                                      No
                                                                                                                                                                                                          No
                                                                                                                                                                                                                             Yes
                                                                                                                                                                                                                                           No



                                                                                                                                                                                                                                                                                        55.000




                                                                                                                                                                                                                                                                                                                                                                                                                        Improving the Services to all our Members
                                                                                                                                                                                                                                                                                                                  national property owners’ organisations im-         te abroad is involved.
                                                                                                                                                                                                                                                                                                                  proved membership services. Whereas many            A forum for exchange of experiences could,
                                                                                                                                                                                                                                                             Yes
                                                                         E

                                                                                   Yes

                                                                                                               Yes

                                                                                                                                       No
                                                                                                                                                                 No
                                                                                                                                                                                      Yes
                                                                                                                                                                                      No
                                                                                                                                                                                                          No
                                                                                                                                                                                                                             No
                                                                                                                                                                                                                                           No



                                                                                                                                                                                                                                                                                        500.000




                                                                                                                                                                                                                                                                                                                  of the U.I.P.I. affiliates already offer a vast     of course, also mean a great inspiration and
                                                                                                                                                                                                                                                                                                                  range of different services to a variety of         help to officers/lawyers involved and further
                                                                         D

                                                                                   Yes

                                                                                                               Yes

                                                                                                                                       No



                                                                                                                                                                                      No




                                                                                                                                                                                                                                                             Yes
                                                                                                                                                                                      No

                                                                                                                                                                                                          Yes
                                                                                                                                                                                                                             Yes
                                                                                                                                                                                                                                           No



                                                                                                                                                                                                                                                                                        445.000




                                                                                                                                                                                                                                                                                                                  member groups, others have only just began          new ideas with respect to improving the ser-
                                                                                                                                                                                                                                                                                                                  to look beyond basic legal advice to their          vice given to members, and with respect to
                                                                                                                                                                                                                                                                                                                  landlord members.                                   the logistics, payment rates, etc. regarding
                                                                         DK

                                                                                   Yes

                                                                                                               Yes Yes/Rgpt Yes

                                                                                                                                       No
                                                                                                                                                                 No
                                                                                                                                                                                      Yes
                                                                                                                                                                                      Yes
                                                                                                                                                                                                          Yes
                                                                                                                                                                                                                             Yes
                                                                                                                                                                                                                                           Yes
                                                                                                                                                                                                                                                             Yes Yes/Rgpt Yes

                                                                                                                                                                                                                                                                                        60.000




                                                                                                                                                                                                                                                                                                                  The idea behind the Membership Services             legal advice.
                                                                                                                   No/Oth.




                                                                                                                                                                                                                                                                 No/Oth.




                                                                                                                                                                                                                                                                                                                  Committee is to help and bring every one of
                                                                         B

                                                                                   No




                                                                                                                                       No
                                                                                                                                                                 No
                                                                                                                                                                                      No
                                                                                                                                                                                      No
                                                                                                                                                                                                          No
                                                                                                                                                                                                                             No
                                                                                                                                                                                                                                           No



                                                                                                                                                                                                                                                                                        80.000




                                                                                                                                                                                                                                                                                                                  the U.I.P.I. affiliates to a level of members-      Technical advice
                                                                                                                                                                                                                                                                                                                  hip services among the best. However, many          Another highly sought after membership ser-
                                                                         A

                                                                                   Yes




                                                                                                                                       3. Stopping accuracy No
                                                                                                                                                                 No
                                                                                                                                                                                      Yes
                                                                                                                                                                                      Yes
                                                                                                                                                                                                          Yes
                                                                                                                                                                                                                             No
                                                                                                                                                                                                                                           No



                                                                                                                                                                                                                                                                                   number existing lifts 40.000




                                                                                                                                                                                                                                                                                                                  of the affiliates lack the resources to develop     vice is technical advice. Again differences in
                                                                                                                                                                                                                                                                                                                  and support complex services on their own.          national legislation form a hindrance to full
                                                                                                                                                                                                                                                             10. Emergency light




                                                                                                                                                                                                                                                                                                                  But through the exchange of experience and          integration between affiliates, although to a
                                                                                                                                                                                                          7. Communication
                                                                                                                                                                 4. Operating panel
                                                                                                                                                                                      5. Door Detectors




                                                                                                                                                                                                                                                                                                                  ideas between the U.I.P.I. affiliates one could     lesser degree than with legal advice.
                                                                                                                                                                                                                                           9. Free fall up
                                                                                                                                                                                      6. Safety gear




                                                                                                                                                                                                                                                                                                                                                                      A field for possible co-operation might be on
                                                                                   1. Car doors




                                                                                                                                                                                                                                                                                                                  create synergies and facilitate more effective
                                                                                                                                                                                                                             8. Asbestos
                                                                         Country




                                                                                                                                                                                                                                                                                                                                                                      site technical surveys based on standardised
                                                                                                               2. Ropes




                                                                                                                                                                                                                                                                                                                  work in this area, and so reduce the cost of
                                                                                                                                                                                                                                                                                                                  improving membership services.                      status report forms. A joint effort towards
                                                                                                                                                                                                                                                                                                                  Although this is certainly true within many         harmonisation of technical standards and
                                                                                                                                                                                                                                                                                                                  areas, it is nevertheless a fact that differences   demands would further increase the value of
                                                                                                                                                                                                                                                                                                                  in interests, national legislation and mem-         such a membership service.
                                                                                                                                                                                                                                                                                                                  bership structure create obstacles to a smooth
                                                                                                                                                                                                                                                                                                                  and efficient co-operation between U.I.P.I.         Economic advice/tax advice
                                                                                                                                                                                                                                                                                                                  affiliates with respect to joint membership         Again an area where national differences
                                                                                                                                                                                                                                                                                                                  services. Nevertheless it is the objective          hamper the implementation of full interna-
                                                                                                                                                                                                                                                                                                                  of the committee to try to find those areas         tional co-operation. However, a forum for
                                                                                                                                                                                                                                                                                                                  where good ideas can be easily copied and           exchange of experiences and new ideas
                                                                                                                                                                                                                                                                                                                  where joint efforts are likely to improve the       might probably bring forward a number of
                                                                                                                                                                                                                                                                                                                  services for all affiliates and subsequently for    suggestions for improvement of existing ser-
                                                                                                                                                                                                                                                                                                                  all their individual members.                       vices.


68                                                                                                                                                                                                                                                                                                                                                                                                                               69
                                            Discount offers                                      interests, structure and national framework,




                                                                                                                                                                                                                                                      SW CH


                                                                                                                                                                                                                                                                            2




                                                                                                                                                                                                                                                                                    1
                                                                                                                                                                                                                                                                                    1



                                                                                                                                                                                                                                                                                                3




                                                                                                                                                                                                                                                                                                            4
                                                                                                                                                                                                                                                                                                            5
                                            For many of the U.I.P.I. affiliates organising       an „all-or-nothing“ strategy is out of the
                                            private house owners, discount offers on ser-        question.




                                                                                                                                                                                                                                                                            6




                                                                                                                                                                                                                                                                                    1




                                                                                                                                                                                                                                                                                                    4




                                                                                                                                                                                                                                                                                                                2
                                                                                                                                                                                                                                                                                                                3

                                                                                                                                                                                                                                                                                                                    5
                                            vices such as insurance, telecom, financial          The best approach would probably be to start




                                                                                                                                                   U.I.P.I. Members’ services Committee – a) Most sought after services (degree of importance: 1-5)
                                            services, oil, gasoline, electricity, etc. consti-   by forming smaller groups of those affiliates




                                                                                                                                                                                                                                                      SP


                                                                                                                                                                                                                                                                            5
                                                                                                                                                                                                                                                                            3
                                                                                                                                                                                                                                                                            4
                                                                                                                                                                                                                                                                            2
                                                                                                                                                                                                                                                                            1




                                                                                                                                                                                                                                                                                                    3
                                                                                                                                                                                                                                                                            1
                                                                                                                                                                                                                                                                            1




                                                                                                                                                                                                                                                                                                    3

                                                                                                                                                                                                                                                                                                        3
                                                                                                                                                                                                                                                                                                        1


                                                                                                                                                                                                                                                                                                                2
                                            tute a major and popular group of members-           wanting to commit themselves to develop
                                            hip services.                                        joint services (or other forms of co-opera-




                                                                                                                                                                                                                                                      SL
                                            Some of these services are also very attracti-       tion) within a specified area. From such a
                                            ve to professional house owners.                     start one could foresee a natural evolution as




                                                                                                                                                                                                                                                      Marino
                                                                                                                                                                                                                                                       San
                                            This is no doubt the area where U.I.P.I.-affi-       new affiliates could join the group according
                                            liates most easily could develop joint mem-          to their own interest and stage of develop-
                                            bership services, for instance by jointly nego-      ment.




                                                                                                                                                                                                                                                      PL
                                            tiating with multinational banks, insurance          Included in the annual U.I.P.I.-questionnaire




                                                                                                                                                                                                                                                      NW


                                                                                                                                                                                                                                                                            1

                                                                                                                                                                                                                                                                                3




                                                                                                                                                                                                                                                                                                    2

                                                                                                                                                                                                                                                                                                        5



                                                                                                                                                                                                                                                                                                                4
                                            companies and oil companies.                         the Membership Services Committee has
                                            This is also the area where affiliates most          posed a question in order to clarify which of




                                                                                                                                                                                                                                                      NL


                                                                                                                                                                                                                                                                            3
                                                                                                                                                                                                                                                                            3




                                                                                                                                                                                                                                                                                                4

                                                                                                                                                                                                                                                                                                    2

                                                                                                                                                                                                                                                                                                        4
                                                                                                                                                                                                                                                                                                        1
                                                                                                                                                                                                                                                                                                        5
                                            easily could learn from each other and copy          the affiliates that would be interested in com-
                                            success stories. The establishment of a forum        mitting themselves to such a form of co-ope-




                                                                                                                                                                                                                                                      IT


                                                                                                                                                                                                                                                                            1
                                                                                                                                                                                                                                                                            2
                                                                                                                                                                                                                                                                            3



                                                                                                                                                                                                                                                                                        4
                                                                                                                                                                                                                                                                                        5
                                            for marketing officers from interested U.I.P.I.      ration within which specific areas.
                                            affiliates might be a way of facilitating this       Parallel to this, one should consider the es-




                                                                                                                                                                                                                                                      IR


                                                                                                                                                                                                                                                                            2
                                                                                                                                                                                                                                                                            3




                                                                                                                                                                                                                                                                                            5




                                                                                                                                                                                                                                                                                                    4

                                                                                                                                                                                                                                                                                                        1
                                            means.                                               tablishment of foras for discussion and




                                                                                                                                                                                                                                                      FL G GR


                                                                                                                                                                                                                                                                            1
                                                                                                                                                                                                                                                                            2




                                                                                                                                                                                                                                                                                        3
                                                                                                                                                                                                                                                                                        4

                                                                                                                                                                                                                                                                                                5




                                                                                                                                                                                                                                                                                                        6


                                                                                                                                                                                                                                                                                                            7
                                            One long term idea that has been discussed in        exchange of experience for certain officers of
                                            the committee is a common membership card            the affiliates, employed within the areas of




                                                                                                                                                                                                                                                                            1
                                                                                                                                                                                                                                                                            2




                                                                                                                                                                                                                                                                                        3
                                                                                                                                                                                                                                                                                        4




                                                                                                                                                                                                                                                                                                        5
Improving the Services to all our Members




                                            for all the U.I.P.I. affiliates with integrated      work mentioned above.




                                                                                                                                                                                                                                                                                                                        Summary of Membership Services Survey
                                            functions such as for instance credit card, and      The Member Services Committee sees the




                                                                                                                                                                                                                                                      CY CZ DM


                                                                                                                                                                                                                                                                            1




                                                                                                                                                                                                                                                                                                5
                                                                                                                                                                                                                                                                                        3



                                                                                                                                                                                                                                                                                                2




                                                                                                                                                                                                                                                                                                            4
                                            other relevant membership services.                  U.I.P.I. Congress in Berlin as a natural forum
                                                                                                 for further debate on the conclusions and




                                                                                                                                                                                                                                                                            4




                                                                                                                                                                                                                                                                                                2
                                                                                                                                                                                                                                                                                                3
                                                                                                                                                                                                                                                                                        1




                                                                                                                                                                                                                                                                                                5
                                            Information activities                               suggestions put forward by the committee;
                                            Information activities may be looked upon            preferably in the form of group discus-




                                                                                                                                                                                                                                                                            1
                                                                                                                                                                                                                                                                            5




                                                                                                                                                                                                                                                                                        4

                                                                                                                                                                                                                                                                                                6
                                                                                                                                                                                                                                                                                                7
                                                                                                                                                                                                                                                                                        3




                                                                                                                                                                                                                                                                                                        2
                                            partly as an integrated part of the daily cho-       sions/working groups during Congress.
                                            res of any organisation and partly as belon-         At the meeting of the committee in Brussels




                                                                                                                                                                                                                                                      B


                                                                                                                                                                                                                                                                            1
                                                                                                                                                                                                                                                                            2




                                                                                                                                                                                                                                                                                        3
                                                                                                                                                                                                                                                                                        5

                                                                                                                                                                                                                                                                                                4




                                                                                                                                                                                                                                                                                                        6


                                                                                                                                                                                                                                                                                                            7
                                            ging to the membership services.                     in February 2003 it was decided to launch




                                                                                                                                                                                                                                                      A


                                                                                                                                                                                                                                                                            1
                                                                                                                                                                                                                                                                            2
                                                                                                                                                                                                                                                                            3
                                                                                                                                                                                                                                                                            4
                                                                                                                                                                                                                                                                            5
                                            Most of the U.I.P.I.-affiliates, if not all, issue   insurance as a priority-area. The main objec-




                                                                                                                                                                                                                                                                            Tenancy agreements, rent books,
                                                                                                                                                                                                                                                                            Insurance schemes/discount rate




                                                                                                                                                                                                                                                                            Others (please explain in short)
                                            a membership magazine or at least a news-            tive is to try and establish a pan-European




                                                                                                                                                                                                                                                                            Reduced oil and petrol prices
                                                                                                                                                                                                                                                                            Web site, Internet services
                                            letter. Interactive websites at more or less         insurance scheme in co-operation with a sui-




                                                                                                                                                                                                                                                                            Reduced electricity tariffs
                                                                                                                                                                                                                                                      Membership Services




                                                                                                                                                                                                                                                                            On site technical survey




                                                                                                                                                                                                                                                                            Broad band services at
                                            sophisticated levels form a growing part of          table insurance company that could be offered




                                                                                                                                                                                                                                                                            Lobbying – legislation




                                                                                                                                                                                                                                                                            Favourable bank loans
                                                                                                                                                                                                                                                                            Members magazine &

                                                                                                                                                                                                                                                                            Professional lectures
                                                                                                                                                                                                                                                                            Lobbying – taxation
                                            the communication with members and the               to all members across the U.I.P.I. at a favou-




                                                                                                                                                                                                                                                                            Insurance advice
                                                                                                                                                                                                                                                                            Technical advice
                                            most effective channel for distributing infor-       rable rate. However, due to the complexity of




                                                                                                                                                                                                                                                                            printed matters
                                                                                                                                                                                                                                                                            Legal advice




                                                                                                                                                                                                                                                                            discount rate
                                            mation and membership services.                      the insurance business, this should be seen as




                                                                                                                                                                                                                                                                            legal forms
                                                                                                                                                                                                                                                                            Tax advice
                                            This is again an area where copying of suc-          a long term project. Following working group
                                            cess stories may offer major improvements at         activities at the 2003 Congress in Berlin, the
                                            low cost, and where the establishment of a           Committee hopes to be able to present an
                                            forum for officers working with information,         agreement between U.I.P.I. affiliates with
                                            website editors, journalists, etc. is bound to       respect to legal advice and assistance.
                                            produce visible synergy effects and provide
                                            new and better services.

                                            From ideas to action
                                            To some extent the Membership Services
                                            Committee has discussed the best strategy
                                            for implementing a form of co-operation bet-
                                            ween affiliates around membership services.
                                            Due to the above mentioned differences in


 70                                                                                                                                                                                                                                                                                                                             71
                                        b) Services suited for international exchange     XXXVII. International Congress in Berlin          • European Union antidiscrimination direc-
                                        through U.I.P.I.                                                                                      tive 2000/43 (enforcement started this sum-
                                        • Insurance schemes – discount insurances         18-21 September 2003                                mer) cannot overrule the fact that the solva-
                                        • Discount electricity rates, petroleum prices,                                                       bility of a tenant is always a highly consi-
                                          etc.                                            Declaration of Berlin                               dered factor for a property owner to deci-
                                        • Comparative information on dispute reso-                                                            de whether to lease a house or a commer-
                                          lution                                          Individual real property in the european            cial property, since rental is a long term
                                        • Technical advice – on site technical surveys    market:                                             mutual relation based on confidence of both
                                        • Internet services                               Freedom, Security & Responsibility.                 parties!

                                        c) New services suited for bilateral or inter-    After having examined the most important          C. Real Property Taxation. Responsibility And
                                        national cooperation                              aspects regarding the current problems of         Possibility.




                                                                                                                                                                                                Union Internationale de la Propriété Immobilière – U.I.P.I.
                                        • member-to member programs                       European private real estate property             • Real estate property owners bear the respon-
                                          – exchange of holiday housing                   owners, U.I.P.I. 37th International Con-            sibility not to exercise their rights against
                                          – Exchange of information on how to sell        gress participants declare that :                   society. Yet sometimes legislation not only
                                          property abroad                                                                                     prohibits them at all from exercising their
                                        • telecom services                                A. Security & Protection of Property Owners-        rights through various restrictions, but
                                        • security systems                                hip in the new European Constitution. Pro-          simultaneously they are also burdened by
                                        • medical insurance, life insurance               perty Rights – Right to Property Ownership.         excessive income, capital and transac-
                                        • credit cards – possibly in conjunction with     • Real estate property rights must be pro-          tions taxation. In Germany today’s building
                                          membership cards                                  tected and secured as precious human rights,      owners are even obliged to pay in advance
                                                                                            as they are a fundamental cornerstone for         the income tax of the building constructors
                                        d) Other joint initiatives                          private initiative and for the market econo-      (Bauabzugsteuer)! On the other hand, pro-
Summary of Membership Services Survey




                                        • exchange of information concerning taxes          my. Although article 17 of the Fundamental        perty taxation is not only a fiscal, but also a
                                          and legal regulations                             Rights Charter provides still the minimum         political issue in every country, finding dif-
                                        • exchange of information on technical              protection required for all property owners,      ferent treatment according to various politi-
                                          norms, construction, environment issues           the Charter of Fundamental Rights must            cal views of each government, or each local
                                        • exchange of simple statistics                     be incorporated into the new European             authority.
                                        • harmonisation of legal regulations, techni-       Constitution in order to become legally bin-    • A substantial reduction of property taxa-
                                          cal norms and tax regime                          ding for all European States!                     tion at reasonable levels is urgently needed
                                                                                          • On the other hand and as far the fate of pro-     in order to allow owners to renovate their
                                                                                            perty in the former communist countries           properties according to the new EU stan-
                                                                                            is concerned, article 17 of the Universal         dards and to have the possibility to pay
                                                                                            Declaration of Human Rights states that           their heavy taxes at the same time!
                                                                                            „everyone has the right to own property“ and
                                                                                            „no one shall be arbitrarily deprived of his    D. Technical Requirements & Cost For New
                                                                                            property“. According to that article, we ask    And Existing Buildings.
                                                                                            the Governments of former communist             • European Union authorities tend to adopt on
                                                                                            countries to restitute real estate to their       a daily basis new technical standards and
                                                                                            rightful owners or to urgently pay fair           requirements for the construction of new
                                                                                            compensations to them!                            buildings, as well as the renovation of the
                                                                                                                                              existing buildings all over Europe, as far as
                                                                                          B. Rental Freedom.                                  health, protection of environment, energy
                                                                                          • Rent regulations in various European coun-        conservation, lifts, electricity transporta-
                                                                                            tries for decades have destroyed the markets,     tion are concerned. U.I.P.I. is not in opposi-
                                                                                            have deteriorated the housing stock and           tion to that adjustment, but we cannot afford
                                                                                            many house and commercial property                to finance the enormous cost of all these
                                                                                            owners all over Europe have suffered from         requirements, without any assistance or
                                                                                            tax burden. The long term interests of both       compensation. Therefore we are working
                                                                                            owners and tenants are guaranteed only in         hard to eliminate all these directives to
                                                                                            status of market freedom and of mutual            what is actually required and acceptable
                                                                                            understanding.                                    by those who will have to pay for it!


 72                                                                                                                                                                                                          73
                                     President                                 Fax +386-61-121 53 05
                                     Drs. Henny J. van Herwijnen               E-Mail: edo@pirkmajer-u.si
                                     Patrijzenlaan 14                          Slovenie – Slowenien – Slovenija
                                     NL-3951 AG Maarn
                                     Tel. + 31-34-344 17 09                    Miroslav Szypowski
                                     Fax + 31-34-352 23 53                     Polska Unia Wlascieli
                                     E-Mail: h.VanHerwijnen@planet.nl          Nieruchomosci
                                              president@uipi.com               Al. Szucha 16/5
                                     Pays Bas – Niederlande – Netherlands      PL-00-582 Warszawa
                                                                               Tel. + 48-22-629 69 67
                                                                               Tel./Fax + 48-22-628 27 75
                                     Presidents of honour                      E-Mail: zrzeszeniewn@poczta.onet.pl




                                                                                                                           Union Internationale de la Propriété Immobilière – U.I.P.I.
                                     Prof. Dr. Lujo Toncic-Sorinj              Pologne – Polen – Poland
                                     Pausingerstrasse 11
                                     A-5020 Salzburg, Austria                  Olav Vilnes
                                     Tel. + 43-662-64 28 86                    Olav Vilnes Storgt. 41
                                     Fax + 43-662-64 28 86 16                  N-3110 Tonsberg
                                                                               Tel +47-33-31 45 50
                                     Prof. Avv. dott. Guido Gerin              Fax +47-33-31 80 35
                                     Via Carducci 10                           E-Mail: vilnes@advokatgruppen.no
                                     I-43133 Trieste, Italy                    Norvege – Norwegen – Norway
                                     Tel. + 39-040 37 07 77
                                     Fax + 39-040 37 137                       Ing. Attilio Viziano
                                                                               Via F. Pozzo 14/3
                                                                               I-16145 Genova
                                     Vice-Presidents                           Tel. + 39-010-31 56 15
                                     Pedro Garcia del Pozo                     Fax +39-010-36 34 59
                                     Consejo general de Camaras de la          Mobile + 39-335-58 25 725
The Executive Commitee of U.I.P.I.




                                     Propriedad urbana de Castilla y Leon      E-Mail: avizian@tin.it
                                     Plaza de Espagne 13                                presidente@apegeconfedilizia.org
                                     E-47001 Valladolid                        Italie – Italien – Italy
                                     Tel. + 34-983-30 71 51 (bureau)
                                     Tel. + 34-983-33 72 41 (privé)
                                     Fax + 34-983-20 68 35                     Secretary General:
                                     E-Mail: campruva@retemail.es              Mr. Stratos I. Paradias
                                     Espagne – Spanien – Spain                 Lawyer, President of Hellenic
                                                                               Property Federation
                                     RA Jürgen Happ, President                 7, Sofokleous Street, GR - 105.59 Athens
                                     Vorsitzender Grundeigentümer-Verband      Tel: +30-210-32 57 846
                                     Paulstr. 10                               Fax: +30-210-32 18 055
                                     20095 Hamburg                             Mob:+30-6944-597 700
                                     Tel. + 49-40-303 796 130                  E-mail stratos@paradias.gr info@uipi.com
                                     Fax + 49-40-321 397                       Grece – Griechenland – Greece
                                     E-Mail: info@grundeigentuemerverband.de
                                     Allemagne – Deutschland – Germany
                                                                               U.I.P.I. Brussels Office
                                     Dr. Edo Pirkmajer                         Mr. Salvatore Conte
                                     Zdru enje Lastnikov                       Galerie Centre, Bloc II, Bureau 216-217,
                                     Nepremicnin v Sloveniji                   Rue des Fripiers 17, 1000, BELGIUM,
                                     Cesta na Ro nik 19                        Tel + 322-2186268 Fax + 322-2181807
                                     Slo-1000 Ljubljana                        E-mail contesalva@skynet.be
                                     Tel. + 386-61-121 53 00                   Belgique – Belgien – Belgium


 74                                                                                                                                     75
                                                              U.I.P.I. Secretary                        Athos Tofaridis                              NL-Amersfoort                            Tel. + 46 8 62601 75,
                                                              Mrs. Rosemarie Engetsberger               Cyprus Land and Property Owners              Tel + 31-33 450 76 31                    Fax +46 8 626 0101
                                                              M.-Bayrhammer-Straße 4                    Organisation                                 Fax + 31-33-450 75 29                    E-Mail: hans.lemker@villariks.se
                                                              A-5110, Oberndorf                         38, Grivas Dhigenis & 3 Deligiorgis street   Mobil + 31-653-90 66 64                  Suede – Schweden – Sweden
                                                              Austria                                   CY-1509 Nicosia                              E-Mail: p.alers@veh.nl
                                                              Fax +43-6272-4334-200                     P.O. box 21455                               Pays Bas – Niederlande – Netherlands     Georges Krieger
                                                              E-Mail: roseeng@sol.at                    Tel. + 357 2 2889890                                                                  Union des Propriétaires du
                                                              U.I.P.I.-website: www.uipi.com            Fax +357 2 2667593                           Barbara Grzybowska-Kabanska              Grand Duché de Luxembourg
                                                              www.uipi.net with links to the websites   E-Mail: atofarid@ccci.org.cy                 Polska Unia Wlascieli Nieruchomosci      122, Boulevard de la Pétrusse
                                                              of all our members                        Chypre – Zypern – Cyprus                     Al. Szucha 16/5                          L-2330 Luxembourg
                                                                                                                                                     PL-00-582 Warszawa
                                                                                                                                                                                              Tel. + 352-22 29 69
                                                                                                        Lluís Terradas i Soler                       Tel. + 48-22-629 69 67
                                                                                                                                                                                              Fax +352-22 29 75
Union Internationale de la Propriété Immobilière – U.I.P.I.




                                                                                                                                                                                                                                        Union Internationale de la Propriété Immobilière – U.I.P.I.
                                                              Treasurer                                 Cambra de la Propietat                       Tel./Fax + 48-22-628 37 75
                                                                                                        Urbana de Barcelona                          E-Mail: biuro@puwn.pl                    Grand Duche De Luxembourg –
                                                              Rudolf Steiner                                                                                                                  Luxemburg – Luxemburg
                                                              Hauseigentümerverband Schweiz             Princesa 1/3, Via Leiatana 22                Pologne – Polen – Poland
                                                              (HEV Schweiz)                             E-08003 Barcelona
                                                                                                        Tel. + 34-93-319 28 77                       Mihai Vinatoru                           Aare Pallin
                                                              Mühlebachstraße 70                                                                                                              Chairman of the Board of Estonian Union
                                                              CH-8032 Zürich                            Fax +34-93-319 29 02                         Property Owners Association of Romania
                                                                                                        Part. Tel. + Fax +34-93-487 89 27            Tel. + 1-973 616 68 00 x 23              of Land and House Owners
                                                              Tel. 0041/1 254 90 20                                                                                                           Narva mnt. 11D
                                                              Fax 0041/1 254 90 21                      E-Mail: cambra@cambrapropbcn.com             Fax + 1-973 616 94 44
                                                                                                        Espagne – Spanien – Spain                    E-Mail: mihaiV@vinatoru.com              Tallin-10151 Estonia
                                                              E-Mail: info@hev-schweiz.ch
                                                                                                                                                     Roumanie – Rumänien – Romania            Tel. + 372 55 902121
                                                              website: www.hev-schweiz.ch
                                                                                                        Fintan MacNamara                                                                      E-Mail: shirley_bean@hotmail.com
                                                              Rackholdernstrasse 18
                                                                                                        Irish Property Owners Association            RNDr. Tomislav Šimecek                   (tempor. address)
                                                              CH-4654 Lostorf
                                                                                                        Ormond Court                                 Association of House Owners              Estonie – Estonia
                                                              Tel. + 41-62-212 13 60
                                                                                                        11 Lower Ormond Quay                         of the Czech Republic
                                                                   +41-62-298 14 54
                                                                                                        IRL-Dublin 1                                 Jugosavskych partyzanu 24                Marco Severini
                                                              Fax +41-62-212 31 12
                                                                                                        Tel. + 35 31 873 55 15                       CZ-160 00 Praha 6                        Confedilizia San Marino
                                                              E-Mail: steiner.law.olten@bluewin.ch
                                                                                                        Fax +35 31 872 90 08                         Tel. + 420-776 109 994                   Via Palma il Giovane, 21
                                                              Suisse – Schweiz – Switzerland            E-Mail: ipoa@eircom.net                      or + 420-2-20 31 85 80                   47895 Domagnano (R.S.M.)
                                                                                                        Eire – Irland – Ireland                      Fax + 420-2-33343184                     Tel. + 39549 904351
                                                                                                                                                     E-Mail: simecek@fzu.cz                   Fax +39549973465
                                                              Members                                   Giovanni Gagliani Caputo                     Republique Tscheque – Tschechien –
                                                              Dr. Friedrich Noszek                                                                                                            Mobile +393357333168
                                                                                                        Confedilizia                                 Czech Republic                           E-Mail: marco.severini@omniway.sm
                                                              Zentralverband der Hausbesitzer           Via Fausto Coppi 11
                                                              Untere Viaduktgasse 11                                                                                                          San Marino
                                                                                                        00142 Roma                                   Slavenko Grgurevic
                                                              A-1010 Wien                               Tel. + 39-06-6793489                         League for the Protection
                                                              Tel. + 43-1-713 03 08                     E-Mail: roma@confedilizia.it                 of Human & Property Rights
                                                              Fax +43-1-713 03 086                                                                                                            U.I.P.I. Working Commitees
                                                                                                        Italie – Italien – Italy                     Jevrema Grujica 4
                                                              Mobile +43-676-303 91 15                                                               11040 Belgrade
                                                              E-Mail: noszek@immobilien.net             Peter Batta                                  Tel. + 381 11 668514
                                                              Autriche – Österreich – Austria                                                                                                 1. Consitution & Property Restitution
                                                                                                        Huseiernes Landsforbund                      Fax + 381 11 660752
                                                                                                                                                                                              Commitee
                                                                                                        Fred Olsens gt. 5                            E-Mail: grgur@yubc.net
                                                              Beatrice Laloux                           N-0151 Oslo                                  Servie – Serbien – Serbia                RA Jürgen Happ, President
                                                              Syndicat National des Propriétaires 76    Tel. + 47-22-47 75 00                                                                 Vorsitzender Grundeigentümer-Verband
                                                              Rue du Lombard                            Fax +47-22-41 19 90                                                                   Paulstr. 10
                                                              1000 Brussels                             E-Mail: post@huseierhl.no                    Hans Lemker                              20095 Hamburg
                                                              Tel. + 32-2-512 62 87                     Norvege – Norwegen – Norway                  Forbundsdirektör                         Tel. + 49-40-303 796 130
                                                              Fax +32-2-512 44 61                                                                    Villaägarnas Riksforbund                 Fax +49-40-321 397
                                                              E-Mail: bea.laloux@snp-aes.be             Peter Alers                                  Johan Berndes väg 8-10                   E-Mail: info@grundeigentuemerverband.de
                                                              beatrice.laloux@skynet.be                 Vereniging Eigen Huis (VEH)                  Box 7118,                                Allemagne – Deutschland – Germany
                                                              Belgique – Belgien – Belgium              P.O. Box 735 1800 AS                         19207 Sollentina-Sweden


  76                                                                                                                                                                                                                                                 77
                                                              2. Taxation Commitee                        Norvege – Norwegen – Norway               Chypre – Zypern – Cyprus                Ormond Court
                                                                                                                                                    Cyprus Land and Property                11 Lower Ormand Quay
                                                              Stratos I. Paradias, President                                                        Owners Organisation                     IRL-Dublin 1
                                                              President of Hellenic Property Federation   Experts-Members Of U.I.P.I.               38, Grivas Dhigenis &                   Tel. + 3531-873 55 15
                                                              7, Sofokleous Street                        Working Commitees                         3 Deligiorgis street                    Fax +3531-872 90 08
                                                              GR-105.59 Athens                                                                      CY-1509 Nicosia                         E-Mail: ipoa@eircom.net
                                                              Tel. + 30-210-32 57 846                     Dr. Ulrike Kirchhoff                      P.o box 21455
                                                              Fax +30-210-32 18 055                       Haus & Grund, Germany                     Tel. + 357 2 2889890                    Italie – Italien – Italiy
                                                              Mobile +30-6944-597 700                     E-Mail: dr.kirchhoff@haus-und-grund.net   Fax + 357 2 2667593                     Confederazione Italiana
                                                              E-Mail: info@uipi.com                                                                 E-Mail: atofarid@ccci.org.cy            della Proprieta Edilizia
                                                                       stratos@paradias.gr                Katelijne D’Hauwers                                                               (Confedilizia)
                                                              Grece – Griechenland – Greece               AES – SNP, Belgium                        Republique Tscheque – Tschechien –      Via Borgognona 47
Union Internationale de la Propriété Immobilière – U.I.P.I.




                                                                                                                                                                                                                                   Union Internationale de la Propriété Immobilière – U.I.P.I.
                                                                                                          E-Mail: kate.dhauwers@aes-snp.be          Czech Republic                          I-00187 Roma
                                                                                                                                                    Verwaltungsrat der                      Tel. + 39-06-67 93 489
                                                              3. Rentals Commitee                         Ioannis Matsas                            Bürgerlichen Vereinigung                Fax +39-06-67 93 447
                                                                                                          POMIDA, Greece                            der Hauseigentuemer in CR               E-Mail: roma@confedilizia.it
                                                              RNDr. Tomislav Šimecek                      E-Mail: icm@elot.gr                       ul. Ceske druziny 5
                                                              President Association of House Owners                                                 CR-160 00 Praha 6                       Grand Duche De Luxembourg –
                                                              of the Czech Republic                       RA Frank Georg Pfeifer                    Tel. + 420-776 109 994                  Luxemburg – Luxemburg
                                                              Jugosavskych partyzanu 24                   Haus & Grund, Germany                     E-Mail: simecek@fzu.cz                  Union des Propriétaires
                                                              CZ-160 00 Praha 6                           E-Mail: hausgrund_pfeifer@freenet.de                                              du Grand Duche de Luxembourg
                                                              Tel. + 420-776 109 994                                                                Estonie – Estonia                       122, Boulevard de la Petrusse
                                                              or +420-2-20 31 85 80                                                                 Estonian Union of                       L-2330 Luxembourg
                                                                                                          Arno Rasmussen
                                                              Fax +420-2-33343184                                                                   Land & House Owners                     Tel. + 352-22 29 69
                                                                                                          HL, Norway
                                                              E-Mail: simecek@fzu.cz                                                                Narva Mnt. 11d                          Fax +352-22 29 75
                                                                                                          E-Mail: a.rasmussen@huseierne.no
                                                              Republique Tscheque – Tschechien –                                                    Tallin 10151 Estonia
                                                              Czech Republic                                                                        Tel. + 372 55 90 21 21                  Pays Bas – Niederlande – Netherlands
                                                                                                          Tassos G. Vappas
                                                                                                                                                                                            Vereniging Eigen Huis (VEH)
                                                                                                          POMIDA, Greece
                                                                                                                                                    Allemagne – Deutschland – Germany       Displayweg 1
                                                              4. Technical Commitee                       E-Mail: vappas@hol.gr
                                                                                                                                                    Zentralverband Haus und Grund           NL-3821 BT Amersfoort
                                                                                                                                                    Deutschland Zentralverband der          Tel. + 31-33-450 77 50
                                                              Michele Vigne, President                                                              deutschen Haus-, Wohnungs- und          Fax +31-33-450 74 32
                                                              Vice president Confedilizia                 The 20 National Association –             Grundeigentümer e.V.                    E-Mail: veh@veh.nl
                                                              President of U.I.P.I. Technical Committee   Members Of U.I.P.I.                       Mohrenstraße 33
                                                              Via Mezzaterra 80                                                                     D-10117 Berlin                          Norvege – Norwegen – Norway
                                                              32100 Belluno                               Autriche – Österreich – Austria           Postfach 080164                         Huseiernes Landsforbund
                                                              Tel. + 39 (0437) 847002                     Zentralverband der Hausbesitzer           D-10001 Berlin                          Fred Olsens gt. 5
                                                                   +39 (0437) 951233                      Landesgerichtsstrasse 6                   Tel. + 49-30-202 16-0                   N-0152 Oslo
                                                              Fax +39 (0437) 847788                       A-1010 Wien                               Fax + 49-30-202 16 555                  Tel. + 47-22-47 75 00
                                                                   +39 (0437) 292442                      Tel. + 43-1-406 33 18                     E-Mail: zv@haus-und-grund.net           Fax +47-22-41 19 90
                                                              E-Mail: segreteria@areatecnica.org          Fax +43-1-406 72 65                                                               E-Mail: post@huseierhl.no
                                                              Italie – Italien – Italy                    E-Mail: noszek@immobilien.net             Grece – Griechenland – Greece
                                                                                                                                                    Hellenic Property Federation (POMIDA)   Pologne – Polen – Poland
                                                                                                          Belgique – Belgien – Belgium              15, Sofokleous Street                   Polska Unia Wlasciscieli
                                                              5. Services Commitee                        Syndicat National des Propriétaires       GR-105.51 Athens                        Nieruchomosci (PUWN)
                                                                                                          (SNP-AES)                                 Tel. + 30-210-32 57 846                 Al. Szucha 16/5
                                                              Olav Vilnes, President                      76, Rue du Lombard                        Fax + 30-210-32 18 055                  PL-00-582 Warszawa
                                                              Olav Vilnes Storgt. 41                      B-1000 Buxelles                           E-Mail: pomida@otenet.gr                Tel. + 48-22-629 69 67
                                                              N-3110 Tonsberg                             Tel. + 32-2-512 49 91                                                             Fax +48-22-628 37 75
                                                              Tel. + 47-33-31 45 50                       Fax +32-2-512 44 61                       Eire – Irland – Ireland                 E-Mail:
                                                              Fax +47-33-31 80 35                         E-Mail: info@snp.aes.be                   Irish Property                          zrzeszeniewn@poczta.onet.pl
                                                              E-Mail: vilnes@advokatgruppen.no                                                      Owners Association (IPOA)               biuro@puwn.pl


  78                                                                                                                                                                                                                                            79
                                                              Roumanie – Rumänien – Romania          Tel. + 34-983-30 71 51                Tel. + 49/53231/250-44                      I-00187 Roma
                                                              Property Owners Association            Fax +34-983-20 68 35                  Fax + 49/5231/399 72                        Tel. + 39-06-67 93 489
                                                              of Romania (APDAS)                     E-Mail: campruva@retemeil.es          E-Mail: midopa@t-online.de                  Fax +39-06-67 93 447
                                                              Str. Brezoianu Nr. 44, Et. 3, Ap. 13                                         Allemagne – Deutschland – Germany           E-Mail: roma@confedilizia.it
                                                              Bucuresti, Sector 1                    Suede – Schweden – Sweden                                                         Italie – Italien – Italy
                                                              Tel. + 4021 3125153                    Villaägarnas Riksforbund              Dr. Friedrich Noszek
                                                              Mobile +4074 0033099                   Johan Berndes väg 8-10                Zentralverband der Hausbesitzer             Toni Dettling
                                                              E-Mail: office@apdas.ro                Box 7118                              Untere Viaduktgasse 11                      Hauseigentümerverband Schweiz
                                                                                                     19207 Sollentina                      A-1010 Wien                                 (HEV Schweiz)
                                                              San Marino                             Sweden                                Tel. + 43-1-713 03 08                       Mühlebachstraße 70
                                                              Confedilizia San Marino                Tel. 08 62601 00                      Fax + 43-1-713 03 086                       CH-8032 Zürich
                                                              Via Palma il Giovane, 21               Fax 08 626 0101                       Mobile + 43-676-303 91 15                   Tel. 0041/1 254 90 20
Union Internationale de la Propriété Immobilière – U.I.P.I.




                                                                                                                                                                                                                              Union Internationale de la Propriété Immobilière – U.I.P.I.
                                                              47895 Domagnano (R.S.M.)               Mobile 0708-7979 18                   E-Mail: noszek@immobilien.net               Fax 0041/1 254 90 21
                                                              Tel. + 39549 904351                    E-Mail: hans.lemker@villariks.se      Autriche – Österreich – Austria             E-Mail: info@hev-schweiz.ch
                                                              Fax +39549973465                                                                                                         website: www.hev-schweiz.ch
                                                              E-Mail: marco.severini@omniway.sm      Suisse – Schweiz – Switzerland        Bernard Roberti                             Suisse – Schweiz – Switzerland
                                                                                                     HEV Schweiz                           Syndicat National des Propriétaires
                                                              Servie – Serbien – Serbia              Mühlebachstraße 70                    76, Rue du Lombard                          Stephen A. Faughnan, P. C.
                                                              League For Protection                  CH-8032 Zürich                        1000 Brussels                               Irish Property Owners Association
                                                              Of Human Rights                        Tel. 0041/1 254 90 20                 Tel. + 32-2-512 62 87                       Ormond Court
                                                              Jevrema Grujica 4                      Fax 0041/1 254 90 21                  Fax + 32-2-512 44 61                        11 Lower Ormand Quay
                                                              11040 Belgrade                         E-Mail:info@hev-schweiz.ch            E-Mail: info@snp-aes.be                     IRL-Dublin 1
                                                              Yugoslavia                             website: www.hev-schweiz.ch           Belgique – Belgien – Belgium                Tel. + 35 31 873 55 15
                                                              Tel. (381 11) 668-514                                                                                                    Fax +35 31 872 90 08
                                                              Fax (381 11) 660-752                   Federation Romande Immobiliere        RNDr. Tomislav Šimezek                      E-Mail: ipoa@eircom.net
                                                              E-Mail: grgur@yubc.net                 rue du Midi 15                        Association of House Owners                 Eire – Irland – Ireland
                                                                                                     CH-1003 Lausanne                      of the Czech Republic
                                                              Slovenie – Slowenien – Slovenia        Tel. + 41-21-341 41 42                Jugosavskych partyzanu 24                   Marc Jones
                                                              Zdruzenje Lastnikov                    Fax +41-21-341 41 46                  CZ-160 00 Praha 6                           Union des Propriétaires du
                                                              Nepremicnin v Sloveniji                E-Mail: mail@fri.ch                   Tel. + 420-776 109 994                      Grand Duché de Luxembourg
                                                              Cesta na Roznik 19                                                           or + 420-2-20 31 85 80                      122, Boulevard de la Pétrusse
                                                              SLO-61000 Ljubljana                                                          Fax + 420-2-33343184                        L-2330 Luxembourg
                                                              Tel. + 386-61-121 53 00                Presidents Of The                     E-Mail: simecek@fzu.cz                      Tel. + 352-29 628
                                                              Fax +386-61-121 53 05                  National Organisations                Republique Tscheque – Tschechien –          Grand Duche De Luxembourg –
                                                              E-Mail: edo@pirkmajer-u.si                                                   Czech Republic                              Luxemburg – Luxemburg
                                                                                                     Rüdiger Dorn
                                                              Espagne – Spanien – Spain              Haus und Grund Deutschland            Stratos I. Paradias                         Mrs. Marlies Pernot
                                                              Cambra de la propietat                 Zentralverband der deutschen Haus-,   President of Hellenic Property Federation   Vereniging Eigen Huis (VEH)
                                                              urbana de Barcelona                    Wohnungs- und Grundeigentümer e.V.    7, Sofokleous Street                        PO box 735 1800 AS
                                                              Princesa 1/3, Via Leiatana 22          Mohrenstrasse 33                      GR-105.59 Athens                            NL-Amersfoort
                                                              E-08003 Barcelona                      D-10117 Berlin                        Tel. + 30-210-32 57 846                     Tel. + 31-33 450 76 31
                                                              Tel. + 34-93-319 28 77                 Postfach 080164                       Fax + 30-210-32 18 055                      Fax +31-33-450 75 29
                                                              Fax +34-93-487 89 27                   D-10001 Berlin                        Mobile + 30-6944-597 700                    E-Mail: m.pernot@veh.nl
                                                              E-Mail: cambra@cambrapropbcn.com       Tel. + 49-30-202 16-0                 E-Mail: info@uipi.com                       Pays Bas – Niederlande – Netherlands
                                                                                                     Fax +49-30-202 16 555                 stratos@paradias.gr
                                                              Consejo General de Camaras             E-Mail: dorn@haus-und-grund.net       Grece – Griechenland – Greece               Olav Vilnes
                                                              de la Propriedad Urbana                                                                                                  Olav Vilnes Storgt. 41
                                                              de Castilla y Leon                     Office in Detmold:                    Avv. Corrado Sforza Fogliani                N-3110 Tonsberg
                                                              Plaza de Espana, 13                    Anwaltssozietat Mische,               Confederazione Italiana                     Tel. + 47-33-31 45 50
                                                              E-47001 Valladolid                     Dorn und Partner GbR                  della Proprieta Edilizia                    Fax +47-33-31 80 35
                                                                                                     Paulinenstrasse 37                    (Confedilizia)                              E-Mail: vilnes@advokatgruppen.no
                                                                                                     32756 Detmold                         Via Borgognona 47                           Norvege – Norwegen – Norway


  80                                                                                                                                                                                                                                       81
                                                              Miroslav Szypowski                     Tel. + 34-983-30 71 51 (bureau)
                                                              Polska Unia Wlascieli                       +34-983-33 72 41 (privé)
                                                              Nieruchomosci                          Fax +34-983-20 68 35
                                                              Al. Szucha 16/5                        E-Mail: campruva@retemail.es
                                                              PL-00-582 Warszawa                     Espagne – Spanien – Spain
                                                              Tel. +48-22-629 69 67                  (Valladolid)
                                                              Tel./Fax + 48-22-628 27 75
                                                              E-Mail: zrzeszeniewn@poczta.onet.pl    Lluís Terradas i Soler
                                                              Pologne – Polen – Poland               Cambra de la Propietat
                                                                                                     Urbana de Barcelona
                                                              Maria Teodoru                          Princesa 1/3, Via Leiatana 22
                                                              Property Owners Association            E-08003 Barcelona
Union Internationale de la Propriété Immobilière – U.I.P.I.




                                                                                                                                                Union Internationale de la Propriété Immobilière – U.I.P.I.
                                                              of Romania (APDAS)                     Tel. + 34-93-319 28 77
                                                              Str. Brezoianu Nr. 44, Et. 3, Ap. 13   Fax +34-93-319 29 02
                                                              Bucuresti, Sector 1                    Part. Tel. + Fax +34-93-487 89 27
                                                              Tel. +4021 3125153                     E-Mail: cambra@cambrapropbcn.com
                                                              Mobile + 4074 0033099                  Espagne – Spanien – Spain
                                                              E-Mail: office@apdas.ro                (Barcelona)
                                                              Roumanie – Rumänien – Romania
                                                                                                     Ulla Johansson
                                                              Marco Severini                         Villaägarna
                                                              Confedilizia San Marino                Box: 10025, 434 21 Göteborg
                                                              Via Palma il Giovane, 21               Mobile +46-708-13 86 23
                                                              47895 Domagnano (R.S.M.)               Fax +46-300-732 33
                                                              Tel. +39549 904351                     Villaagarnas Hus: Box 7118
                                                              Fax + 39549973465                      192 07 Sollentuna
                                                              Mobile + 393357333168                  Tel. + 46-8-626 01 00
                                                              E-Mail: marco.severini@omniway.sm      Fax +46-8-626 01 01
                                                              San Marino                             E-Mail: ulla.johansson@villariks.se
                                                                                                     Suede – Schweden – Sweden
                                                              Slavenko Grgurevic
                                                              League for the Protection              Loukis Xatzikyriacou
                                                              of Human & Property Rights             Cyprus Land and Property Owners
                                                              Jevrema Grujica 4                      Organisation
                                                              11040 Belgrade                         38 Grivas Dhigenis & 3 Deligiorgi street
                                                              Tel. +381 11 668514                    P.O. Box 1455
                                                              Fax + 381 11 660752                    CY-1509 Nicosia
                                                              E-Mail: grgur@yubc.net                 Tel. + 357-2-66 95 00
                                                              Servie – Serbien – Serbia              Fax +357-2-66 75 93
                                                                                                     E-Mail: chamber@ccci.org.cy
                                                              Urh Bahovec                            Chypre – Zypern – Cyprus
                                                              Tavcarjeva 11
                                                              SLO-1000 Ljubljana
                                                              Tel./Fax + 386-61-314 551
                                                              Slovenija – Slowenien – Slovenie

                                                              Pedro Garcia del Pozo
                                                              Consejo general de Camaras
                                                              de la Propriedad urbana
                                                              de Castilla y Leon
                                                              Plaza de Espagne 13
                                                              E- 47001 Valladolid


  82                                                                                                                                                         83
     Union Internationale de la Propriété Immobilière – U.I.P.I.
84




     Union Internationale de la Propriété Immobilière – U.I.P.I.
85
     Union Internationale de la Propriété Immobilière – U.I.P.I.
86




     Union Internationale de la Propriété Immobilière – U.I.P.I.
87
     Union Internationale de la Propriété Immobilière – U.I.P.I.
88




     Union Internationale de la Propriété Immobilère – U.I.P.I.
89
     Union Internationale de la Propriété Immobilière – U.I.P.I.
90




     Union Internationale de la Propriété Immobilière – U.I.P.I.
91
     Union Internationale de la Propriété Immobilière – U.I.P.I.
92




     Union Internationale de la Propriété Immobilière – U.I.P.I.
93
     Union Internationale de la Propriété Immobilière – U.I.P.I.
94




     Union Internationale de la Propriété Immobilière – U.I.P.I.
95
                                                              The 38th International Congress of UIPI
                                                                  will take place in Oslo, Norway,
                                                                           on June 2005!




Union Internationale de la Propriété Immobilière – U.I.P.I.
                                                                 The Congress will be organized by UIPI
                                                                        (www.uipi.com) and the
                                                                       Huseiernes Landsforbund
                                                                      (Norwegian House Owners
                                                                   Organization – www.huseierne.no).
                                                                        „See you all in Oslo!“




  96

				
DOCUMENT INFO
Shared By:
Categories:
Stats:
views:201
posted:2/4/2010
language:English
pages:49