Recurrent tax on immovable property in tax systems of the EU countries

This paper deals with the issue of recurrent tax on immovable property and its significance in the tax systems of the EU Member States. The recurrent tax on immovable property is classified as a property tax, also according to the international methodology of the classification of taxes. This tax is imposed on the owners (in some cases on the lessee or user) of the immovable property in the various tax jurisdictions and belongs to the taxes that the taxpayer cannot avoid and from this perspective it represents a stable source of income for the public budgets of the modern market economies. From that point of view, the analysed tax is a significant tax in tax system of Member States of the European Union. In detail we will deal with the system of application of analysed tax in the EU Member States, moreover we will focus on fundamental differences in determination of the tax base. On the basis of the results of our research, we are able to make a recommendation for policymakers in the Czech Republic. We encourage them to change the determination of tax base which involves transition from specific tax base to ad valorem tax base. Within the paper there is discussed a positive significance of ad valorem tax base, which is applied in majority of tax system of the European Union countries.