IDEAS home Printed from https://ideas.repec.org/a/euf/qreuro/0141-03.html
   My bibliography  Save this article

Housing taxation: from micro design to macro impact

Author

Listed:
  • Serena Fatica

Abstract

This section discusses housing taxation from an efficiency and equity standpoint, highlighting the fiscal and macroeconomic consequences of the current tax rules. On the fiscal side, the relatively low contribution of property taxes to government budgets means that the favourable treatment of owner-occupied housing, through exemptions and relief measures, entails a revenue cost. These tax expenditures can lead to distortions in tenure choices and the allocation of capital and moreover, may ultimately contribute towards higher house prices, thus working against their intended aim of fostering home ownership. The tax break granted to mortgage interest payments also encourages highly leveraged housing investment and the accumulation of high household debts. Distributional issues, particularly when it comes to indebted households, should be taken into account when considering tax reforms aimed at enhancing the efficiency of housing taxation.

Suggested Citation

  • Serena Fatica, 2015. "Housing taxation: from micro design to macro impact," Quarterly Report on the Euro Area (QREA), Directorate General Economic and Financial Affairs (DG ECFIN), European Commission, vol. 14(1), pages 27-33, March.
    • Handle: RePEc:euf:qreuro:0141-03
    as

    Download full text from publisher

    File URL: http://ec.europa.eu/economy_finance/publications/qr_euro_area/2015/pdf/qrea1_section_3_en.pdf
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Doris Prammer, 2020. "Immovable property: where, why and how should it be taxed? A review of the literature and its implementation in Europe," Public Sector Economics, Institute of Public Finance, vol. 44(4), pages 483-504.
    2. Alexander Leodolter & Savina Princen & Aleksander Rutkowski, 2022. "Immovable Property Taxation for Sustainable and Inclusive Growth," European Economy - Discussion Papers 156, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.

    More about this item

    Keywords

    housing taxation;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:euf:qreuro:0141-03. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ECFIN INFO (email available below). General contact details of provider: https://edirc.repec.org/data/dg2ecbe.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.