Second home tax, viewed from countries around the world

06/10/2017   Viewed: 969
In the real estate market, information on whether the Treasury is planning to tax owners from two or more dwellings has received a number of positive and negative comments. Looking at the reality of the countries in the world, they taxed the second house, so that Vietnam can filter and apply.
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Property development is concerned people. Illustration

According to New World Wealth Survey, in 2016, the two cities with the most millionaires and billionaire own the second largest home are the financial centers London (UK) and New York (USA) with 21,500 and 18,400 respectively.

Asian markets are in the list of 3 names are quite familiar Hong Kong with 15,000 people, Singapore with 11,700 people followed by Dubai with 8,600 people.

According to New World Wealth, the list of the 10 markets in the world's most affluent people owns second homes: London, New York City, Hong Kong, Singapore, Dubai, The Hamptons, Geneva, Miami , Paris, Zurich.

China is the most populous country in the world, the real estate market has the phenomenon of bubble is a natural course, they immediately put forward this way of taxation as a tool to regulate the market. The second home buyer will be subject to a tax rate of 1.2% on the value of the home. And they were very successful.

Singapore, which is a very successful country with the second property tax, has even been hit very badly. Additional property tax will be applied from 2013 on real estate up to 7% on the purchase price; 10% for the third real estate and has been applied since 2013.

In Japan, the real estate tax rate ranges from 1.4% to 2.1% on both house and land values ​​at market prices and adjusted once every three years.

Taiwan has a tax levied on each segment of the property. They taxed 1.2% -2.0% on condominiums, about 1.4% on private homes (villas); 3.0% -5.0% for houses, buildings for commercial purposes.

South Korea levied 0.15% -0.5% for private homes; 0.25% for condominiums; 4% for houses in golf courses, villas, amusement parks; 5% for houses in large urban areas. Taxes are levied on the local land price list issued and this price list is approximately equal to 15% -20% of the market price.

In the United Kingdom, the country has imposed additional property taxes on second property since 1 April 2016. Specifically, with second homes priced at over £ 40,000, buyers must pay an additional 3% of the normal rate. The house is priced at over £ 1.5m, up to 15% tax.

In the United States, California has a tax rate of more than 1.2% per year on property values, including land and buildings, while in Texas the tax rate is above 4%. The tax rates in the US states vary from state to state.

In Canada, the tax rate for a second home can be as high as 4%. This country is also tightening the uninhabitable real estate. Vancouver homeowners are responsible for declaring themselves the home they are staying in, and where they are buying.

In Vietnam, this tax was proposed more than five years ago in the Housing Tax Law, but at that time the proposal was not approved by the National Assembly because there are many ideas that it is difficult to implement in. actual current context of the country.

Le Hoang Chau, the HCM City Real Estate Association's chairman, told the media: "Specifically, this year the proposal to tax the second home will not be submitted to the National Assembly. It is said that until now, this policy will not be applied until 2020. So far, the price list is only equal to that of the Government. 30% of the market price, for example, land in some districts in District 1 is only VND 162 million / sq m, but in reality, the market price of land in district 1 is up to VND1 / m2. Therefore, the difference between the price list and the market price is very large, if the tax rate is only 0.03% and based on the land price list, the tax expense year is not high "

Stephen Wyatt - General Director of JLL in Vietnam responded to the press: "The taxation on the second home onwards is quite common in countries around the world, however, the application of this law in Vietnam will be quite is complex and needs to be considered in many respects

"To do this effectively across the entire system, we need to set up an information system to store all records of real estate transactions, real estate owners," said Stephen Wyatt. However, there will still be challenges when family members can take over property to avoid taxation.

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