UK ‘Boasts’ Highest Level Of Property Taxes In Europe

The UK has the highest level of property taxes of any major economy in the world (including across Europe) as a share of the economy, according to new analysis, with new business reforms only set to add to the load.

The global tax firm Ryan said the UK suffered a heavier property tax burden than the likes of France and Canada.

Ryan’s 2026 review found property taxes in the UK as a share of GDP was 3.7% , ahead of France and Canada at 3.4%.

Britain was second only to the US in absolute property tax revenues, generating £102bn compared to America’s £640bn.

The UK also ranks third globally for property taxes as a share of total revenues, at 10.9%, behind the US and South Korea.

Labour’s reforms on business rates are set to add to the load as business rates receipts are forecast to hit £37.1 billion in 2026/27 – a rise of more than £3.5 billion in a single year.

The findings add to what has already been identified in separate research. Researchers at the Adam Smith Institute found that the UK was the second least competitive OECD country for property taxes, above only Italy.

Researchers said the UK had the second-lowest average rate of gross fixed capital formation as a share of GDP in the OECD, reflecting struggles to pile cash into new buildings and infrastructure.

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