Media type · Annually or by period
Property tax
A recurring tax on owning property, usually based on an assessed value.
Key facts
| Recurs | Annually or by period |
|---|---|
| Base | Assessed value, by local rules |
| Paid to | Local authority |
| Exemptions | Owner-occupied relief may apply |
| Changes | Revaluations and rate changes |
Why it belongs in the yield
Property tax is a holding cost that continues whether the property is let or empty. Leaving it out of a net yield overstates the income from the asset.
The charge can also change after a purchase or a revaluation. A figure from the seller is a starting point, not a guarantee for the next year.
Frequently asked questions
Is property tax paid by the owner or the tenant?
Usually the owner, though some markets pass certain charges to the tenant. The lease and local law decide.
Does a foreign owner pay a different rate?
Sometimes. Some jurisdictions apply surcharges or different reliefs to non-resident owners, so check the local rule.