Foreign experience in taxation real estate

Abstract

Importance: taxation of real estate is an integral mechanism of the tax system of all states. In the practice of most developed countries, these taxes are the main ones in the formation of local budgets. Real estate is one of the most stable objects of taxation, it is more difficult to hide and evade. Taxation encourages more efficient use of property. Developed countries have accumulated a wealth of experience in the taxation of real estate, which is why it is possible to identify the main features that characterize the taxation of real estate, which are also more or less reflected in the legislation of foreign countries. Purpose: to identify the current practice of taxation of real estate abroad and substantiate its strengths and weaknesses. Research design: the theoretical basis of the study is the dialectical method, which allowed us to formulate the following pattern: the higher the level of economic development of the country and the life of the population, the higher the share of property taxes in the taxation structure and vice versa. In the course of the study, the scientific works of various authors were studied and summarized. Results: the paper examines the main elements of real estate taxation in foreign countries. The role of these taxes, both in GDP and in tax revenues, is shown. There is a weak fiscal role of these taxes in all countries. It is emphasized that an important component of real estate taxes is the pursuit of social justice, which is achieved through progressive taxation. The advantages and disadvantages of real estate taxes are identified. The identified weaknesses are designed to determine the directions of measures for their improvement. A systematic vision of real estate taxes is presented.