According to The Serbian Economist, Albania’s Ministry of Finance has submitted a draft bill for public discussion that would increase property taxes and revise the system of tax breaks for homeowners.
Under the proposal, the tax on residential real estate could rise from the current 0.05% of the property’s value to 0.1–0.2%. Higher rates are also proposed for commercial properties, with the total tax burden depending on the property category and its intended use.
One of the key changes concerns owners of second and subsequent properties. If the property is not their primary residence, tax exemptions will not apply. Thus, owners of vacation homes, investment apartments, and additional housing will have to pay the full rate.
In effect, the government is attempting to distinguish between social housing and investment real estate. For families who own only one apartment, the tax increase may be partially offset. For owners of multiple properties, the tax burden will rise more significantly.
The reform is particularly important for Albania’s real estate market, where housing prices have risen rapidly in recent years in Tirana, Durres, Vlora, Saranda, and other locations linked to tourism and investment demand. Amid active construction, interest from foreign buyers, and the growth of short-term rentals, the government is seeking to increase local budget revenues and align property taxation more closely with the market value of assets.
Albania is gradually transitioning from the old model of fixed or low taxes to a more modern system where the tax base is tied to the property’s value. This approach is in line with the recommendations of international financial organizations, but it could prove painful for property owners, especially if the cadastral and market valuations of residential properties are revised upward.
For foreign investors, these changes mean that the annual cost of maintaining a second home on the coast or an investment property in Tirana will become somewhat more expensive. That said, even after the increase, the tax burden in Albania will remain relatively moderate compared to many EU countries.
The key question for the market is how exactly the authorities will assess property values and how quickly the new system will be implemented in practice.
The Albanian real estate market remains one of the most dynamic in the Balkans. Growth in tourism, the development of coastal cities, and interest from foreigners are sustaining demand; however, the tax increase could gradually cool speculative purchases and widen the gap between residential housing and investment real estate.
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A decree by the President of Kyrgyzstan titled “On Measures to Improve the Tax System and Tax Administration” will provide a range of tax incentives for entities in the IT sector, as well as those engaged in creative and artistic activities, the country’s tax service announced on Friday.
Specifically, IT workers, artificial intelligence and app developers, bloggers, remote workers for foreign companies, and startup founders will be exempt from taxes for a period of 5 years.
In addition, this category will be subject to a preferential income tax rate of 5% and social security contributions of 12%.
This measure will enable Kyrgyzstan to become a regional hub for the development of IT, artificial intelligence, and creative industries, attracting talented professionals, innovative companies, and investments from around the world, the statement emphasizes.
The preferential tax regime will help entrepreneurs allocate more funds to business development, the implementation of new technologies, and the enhancement of domestic companies’ competitiveness.
The UK is considering introducing an additional tax on non-residents who own high-value residential property in the country, according to the Financial Times.
This involves a potential surcharge on the already approved luxury home tax, which is set to take effect in April 2028. The new levy will apply to properties valued at £2 million or more. The UK Treasury refers to the proposed additional measure as the “oligarch tax” or the “non-resident surcharge.”
Under the basic scale of the new tax, owners of homes valued between £2 million and £2.5 million will pay an additional £2,500 annually. For properties valued at up to £3.5 million, the levy will be £3,500; for those up to £5 million, £5,000; and for properties valued at over £5 million, £7,500 per year.
Initially, authorities estimated that the new tax on luxury housing would generate approximately £430 million annually for the budget. However, the introduction of an additional surcharge for non-residents could increase revenue. According to The Times, foreign and international owners may account for 25–35% of the approximately 165,000 properties that could potentially be subject to the new levy.
British authorities link the initiative not only to the need to replenish the budget but also to an attempt to ease pressure on the housing market, particularly in London. The Treasury is examining the extent to which demand from foreign buyers affects property prices and housing affordability for British households.
The new tax is officially called the High Value Council Tax Surcharge. It will apply to residential properties in England valued at £2 million or more. The Valuation Office Agency will be responsible for assessing the properties, and the surcharge itself will be collected alongside council tax but will go to the central budget.
The British luxury real estate market has traditionally remained one of the key sectors for international investors. The highest concentration of high-end housing is found in London and the southeast of England. Market experts warn that the new tax could increase pressure on the segment of properties valued at around £2 million, as sellers and buyers will seek to avoid falling into the new tax bracket.
Italy is preparing a new tax regime for citizens who have lived abroad for a long time and wish to return to their homeland after retirement.
The essence of the initiative is the introduction of a preferential 4% tax rate on worldwide income for returning Italian expat retirees. The new regime is intended to become a separate tool of Rome’s tax policy and the first one specifically targeted at recipients of Italian pensions.
Italy currently has several preferential regimes in place for new residents, including a scheme for wealthy foreigners and a 7% regime for foreign retirees who move to certain small municipalities in the south of the country. However, these mechanisms did not fully address the situation of Italians who have worked and lived abroad for decades and then wish to return to Italy to retire.
Under the current scheme for foreign retirees, the 7% rate applies to foreign income if the individual transfers their tax residency to Italy and moves to an eligible municipality. In 2026, Italy expanded this scheme: the population limit for participating municipalities was raised from 20,000 to 30,000 residents, opening up access to the benefit for new towns in the south of the country.
The new 4% scheme could become a more targeted measure for Italian citizens abroad. Authorities hope it will help bring back some retirees who have income and savings outside Italy but maintain personal, family, or cultural ties to their homeland. For the government, it is also a way to support small towns and regions facing an aging population and population outflow.
For the real estate market, such an initiative could boost demand for housing in small towns and southern regions of Italy. Returning retirees tend to look not toward Milan or Rome, but toward more affordable locations with a low cost of living, a good climate, medical infrastructure, and the opportunity for a peaceful life. This could support the secondary housing market, long-term rentals, and services for senior residents.
In recent years, Italy has actively used tax incentives as a tool to attract capital and new residents. At the same time, authorities are reviewing tax breaks for ultra-high-net-worth foreigners: there have been discussions about raising the flat tax on foreign income for new wealthy residents from EUR 200,000 to EUR 300,000 per year.
Ukraine’s local budgets received 4.9 billion UAH in taxes on real estate other than land plots from January through April 2026, a 14.5% increase compared to the same period last year, according to the State Tax Service (STS).
The largest amounts of revenue were recorded in Kyiv (UAH 1.05 billion), Kyiv (UAH 547.3 million), Dnipropetrovsk (UAH 490 million), and Lviv regions (UAH 487 million). The agency noted that this tax is levied only on the area exceeding the tax-exempt thresholds: over 60 square meters for apartments, over 120 square meters for houses, and over 180 square meters for various types of housing. The tax rate is set by local authorities but cannot exceed 1.5% of the minimum wage per square meter above the threshold.
At the same time, land tax revenues for the first four months of this year increased by 14.3% compared to the same period in 2025—reaching 15.8 billion UAH. The additional revenue for local communities from this payment amounted to nearly UAH 2 billion. The leaders in land tax payments were Dnipropetrovsk Oblast (UAH 3 billion), Kyiv (UAH 2.3 billion), Odesa (UAH 1.4 billion), and Lviv (UAH 1.2 billion) Oblasts.
Land tax is a mandatory local payment made by owners of land plots, land shares, and permanent land users. For individuals, assessments are made by tax authorities, and payment must be made within 60 days of receiving the tax notice-decision. Legal entities calculate the tax themselves and file returns annually by February 20.
Land tax exemptions are available for senior citizens, individuals with disabilities of Groups I and II, war veterans, large families, and individuals affected by the Chernobyl disaster. The exemption applies within the established limits on plot size. The State Tax Service notes that the obligation to pay the tax remains with the owner even if no notice is received, and the status of payments can be checked through the taxpayer’s electronic account.
The Swiss Federal Council has approved the launch of a housing tax reform effective January 1, 2029—from that point on, homeowners who live in their own homes will no longer pay tax on the so-called imputed rental value (Eigenmietwert).
This is one of the most unique tax rules in Europe: until now, living in one’s own house or apartment in Switzerland was considered imputed income, on which income tax was levied. As part of the reform, this system will be abolished for both primary and secondary residences, while parliament simultaneously provided a constitutional option for cantons to introduce a special tax on second homes.
The reform became possible after Swiss voters supported changes to housing taxation in a referendum on September 28, 2025. According to Swissinfo, 57.7% of voters supported the reform. The Federal Council rejected requests from several Alpine cantons to postpone the launch of the new system until at least 2030, deciding to maintain the effective date of the changes as 2029.
For the housing market, this means not only the abolition of the imputed rental income tax but also a revision of related tax deductions. According to the official explanation, the current model was based on a balance between taxing imputed income and the ability to deduct mortgage interest and housing maintenance costs from the tax base. Following the reform, this mechanism will be significantly altered, and the cantons will have to adapt their own tax regimes over the coming years.
For foreign investors and real estate buyers, this news is important primarily as a signal of further adjustments to the rules governing home ownership in Switzerland. At the same time, the final impact of the reform on the tax burden will depend on the structure of real estate ownership, the presence of a mortgage, and how specific cantons exercise their right to impose a separate tax on second homes.
