In the present paper author will attempt to show empirically that property taxation causes depression even in the long run. Hence, the view of OECD (2009) that property taxation will persuade investors to avoid to invest in safe assets (houses) and to invest instead in more productive assets in order to boost economic growth in the long run is not supported by the present model. The sample covers EU. The elaboration of these panel data is made feasible by means of the Eviews software package.