The property taxes that continue after you move in

These are listed in the order worth acting on, which with recurring property taxes is not the order they are usually presented in.

Recurring taxes are the quiet running cost

Almost every country levies something annually on residential property, whether on the owner, the occupier or both. It is easy to overlook when comparing properties because it does not appear in the listing and varies between neighbouring areas.

Over a long ownership it can total a substantial sum, and it rises independently of your income. Establish the figure for the specific property before you offer, since the seller or the local authority can usually tell you.

The basis of assessment differs

Some systems assess on current market value, some on a historic valuation date that may be decades old, and some on floor area or a notional rental value. Where an old valuation date is used, the relationship between the tax and current value can be arbitrary.

Bands and rates are set locally in many countries, so two similar houses a short distance apart can pay different amounts. Improvements and extensions can trigger reassessment in some systems, which is a cost of altering a property that people rarely anticipate.

Reliefs and exemptions

Discounts for single occupants, students, low incomes, pensioners and disability adaptations exist in various systems. They are frequently not applied automatically, and claiming them can be backdated in some jurisdictions. It is worth reading the list of available reliefs once, since eligibility changes with circumstances.

Where a property is unoccupied or undergoing major works, temporary exemptions sometimes apply.

Surcharges to watch for

Empty homes, second homes and short-let properties attract surcharges in a growing number of places, sometimes at multiples of the standard rate. These have been introduced and increased rapidly in several countries, so a rate that applied when you bought may not be current.

Owners of a property standing empty between sale and purchase can be caught by this unexpectedly. Check the local position for any property you will not occupy full time.

Other recurring charges

Water, drainage, waste and in some places separate levies for flood defence or local infrastructure are billed alongside or separately. New developments increasingly carry estate management charges for private roads and open spaces, which are contractual rather than statutory. Estate charges of that kind are not capped by the mechanisms that limit statutory taxes and can be open-ended.

Put simply, ask for the current annual figure for every one of these before completion.

Taxes on income and gains

Letting a property, letting a room or selling one that is not your main home usually has tax consequences, and reliefs vary widely. Rules change frequently and interact with your personal circumstances in ways a general article cannot address. Keeping records of purchase costs and capital improvements can reduce a future gain calculation in many systems.

An accountant in your own jurisdiction is the correct source for any of this.

Everything above, in order of what to do first

1. Recurring taxes are the quiet running cost. Almost every country levies something annually on residential property, whether on the owner, the occupier or both.
2. The basis of assessment differs. Some systems assess on current market value, some on a historic valuation date that may be decades old, and some on floor area or a notional rental value.
3. Reliefs and exemptions. Discounts for single occupants, students, low incomes, pensioners and disability adaptations exist in various systems.
4. Surcharges to watch for. Empty homes, second homes and short-let properties attract surcharges in a growing number of places, sometimes at multiples of the standard rate.
5. Other recurring charges. Water, drainage, waste and in some places separate levies for flood defence or local infrastructure are billed alongside or separately.
6. Taxes on income and gains. Letting a property, letting a room or selling one that is not your main home usually has tax consequences, and reliefs vary widely.

The takeaway

Get the annual figure for the specific address, plus any estate charge, before you agree a price.

Pick the one that costs you least, and let the rest wait.