||A number of transitional economies are in the process of developing real estate taxation based upon the market values of properties. This paper examines the issues involved in achieving this. The use of market values in taxation requires the existence of valuation standards based upon market value, systems of land registration that enable an accurate fiscal cadastre to be compiled, data about market values, and valuers trained in the use of open market methods of valuation. The paper examines the development of market value real estate taxation in Hungary and Romania and the valuation infrastructure available to support it. It compares these countries with Greece, which has also recently moved towards market value real estate taxes and the UK. It draws upon research undertaken for a Leonardo da Vinci project. This suggests that the use of European and International Valuation Standards has brought about greater harmonisation of valuation standards and methods between the four countries but that significant differences remain in the education and training of valuers and these may be an important constraint on the development of market value real estate taxation. The participants in the LdV project are CRFB Bucharest, ANEVAR, Academia de Studii Economice Bucharest, Technical University of Bucharest, University of West Hungary, CVT Georgiki Anaptixi, and Oxford Brookes University.