A Comparative Study of Capital Gain Taxes and their Effects on House's Prices in OECD Countries

In countries with unstable economy and in real estate sector، time series statistics indicate that housing is the main objective for wandering capitals and result in speculative demand in this market. The capital gain taxes which are imposed on houses prices growth when they are sold deprive their owners from part of their return. By imposing taxes on buying and selling houses through frequent tranactions in short term intervals with the objective of gaining unusual profit، speculative taxes occur. In fact the differences of these two taxes are based on asset acquiring period. The present research seeks to review the capital gain taxes effects on houses prices growth in selected member countries of OECD. The panel data for the period of 2000-2013 were used. The estimation results by using GMM method and considering endogenity of variables show that the gain taxes (which are of speculative kind) have no effect on houses prices growth.